Consumer Decision Making (W3)

Consumer behavior refers to:

• The financial management of a company
• The process consumers use to make purchase decisions and use/dispose of products
• The way marketers set prices
• Government regulation of consumer rights

Answer explanation

Consumer behavior is the study of how consumers make purchase decisions and use/dispose of products.

Which of the following is NOT part of the five-step decision-making process?

• Need recognition
• Information search
• Evaluation of alternatives
• Market segmentation

Answer explanation

Market segmentation is a separate marketing activity, not a step in the consumer decision-making process.

A value derived from solving problems and accomplishing tasks is called:

• Hedonic value
• Utilitarian value
• Emotional value
• Functional value

Answer explanation

Utilitarian value comes from the practical benefits of solving problems and completing tasks.

Which stage comes immediately after the purchase in the consumer decision-making process?

• Information search
• Need recognition
• Postpurchase behavior
• Evaluation of alternatives

Answer explanation

After the purchase, consumers evaluate satisfaction, which is the postpurchase behavior stage.

Which type of purchase is typically made quickly, often with little prior planning?

• Planned purchase
• Partially planned purchase
• Impulse purchase
• Extensive decision making

Answer explanation

Impulse purchases are made spontaneously, often triggered by promotions or emotions.

Cognitive dissonance occurs when a consumer:

• Always buys the cheapest product
• Feels tension after recognizing inconsistency between behavior and beliefs
• Purchases the same brand repeatedly
• Ignores advertising messages

Answer explanation

Cognitive dissonance is the discomfort felt after recognizing inconsistency between beliefs and behavior.

Which of the following is an example of routine response behavior?

• Buying a new car
• Buying toothpaste
• Choosing a university
• Selecting a retirement plan

Answer explanation

Routine response behavior applies to frequently purchased, low-cost items like toothpaste.

Internal information search involves:

• Searching online reviews
• Recalling past experiences and knowledge
• Reading advertisements
• Asking friends for advice

Answer explanation

Internal search refers to recalling past experiences and stored knowledge from memory.

Which factor is MOST likely to increase consumer involvement in a purchase?

• Low product cost
• High perceived risk
• Routine buying behavior
• Familiarity with the product

Answer explanation

High perceived risk makes consumers more careful, increasing their level of involvement.

A consumer who researches clothing styles but chooses the brand while shopping is making a:

• Planned purchase
• Partially planned purchase
• Impulse purchase
• Routine purchase

Answer explanation

A partially planned purchase happens when the product type is known but the brand is chosen later.