GB 350 EXAM 2 QUESTIONS AND
ANSWERS
•Internal search for information - ANSWER-•Low involvement or routine
decisions/purchases
•Familiar with product
•Example: where you do your weekly grocery shopping
•External search for information - ANSWER-•High involvement, often big purchases
•Not familiar with product
•Example: buying a stove
•Perceived benefits vs. perceived costs - ANSWER-•Is it worth the time and effort to
search for information about a product or service?
Example: Buying a car vs. buying a bag of chips
Locus of control - ANSWER-•one's perceptions about the underlying main causes of
events in his/her life
Internal - ANSWER-•individuals believe they have more control over the outcomes of
their actions and engage in more search activities
•Example: Merida from Brave, most entrepreneurs
External - ANSWER-•individuals believe that external factors or fate determine the
outcome of events and don't place an emphasis on gathering information
•Example: Students who believe their grades are due to luck or circumstance
Performance risk - ANSWER-•one is concerned that a product will not perform well
•Example: Magic Bullet Blender
Financial risk - ANSWER-•one is concerned that a product costs too much initially
and/or down the road
•Examples: trendy purses and dry clean only clothing
Social risk - ANSWER-•one is concerned that others might not regard their
purchases positively
•Examples: purchasing feminine products, purchasing lots of cheap alcohol in bulk
Physiological/safety risk - ANSWER-•fear that a product might cause bodily harm if it
does not perform properly
•Example: Takata airbags
Psychological risk - ANSWER-•has to do with the way a product/service will make
you feel if it does not convey the right image
, •Leads to "bigger is better" thinking
•Example: Ugly car
•Universal sets - ANSWER-•All possible choices within a product category
•Example: All types of beverages
•Retrieval sets - ANSWER-•Choices that can be readily brought forth from memory
•Ex: Sunny Delight, Capri Sun
•Evoked sets - ANSWER-•Choices that the consumer would consider when making a
purchase decision
•Ex. Dr. Pepper, Coke, Sprite
Determinant attributes - ANSWER-•features of a product or service that are
important to the consumer and differ from those of the competitors
•Example: buying a car
Consumer decision rules- - ANSWER-the set of criteria that consumers use to make
purchase decisions
Compensatory decision rule - ANSWER-assumes that the consumer makes
tradeoffs such that the good outweighs the bad
Noncompensatory decision rule - ANSWER-•the consumer makes their decision
based off of one characteristic of a product
•Example: Louboutons
•Cognitive dissonance=buyer's remorse - ANSWER-We want to decrease cognitive
dissonance
Comprised of three components - ANSWER-•Cognitive—what we believe to be true
•Affective-what we feel
•Behavioral—the actions we undertake in regards to the issue
•Perception - ANSWER-•Process by which we select, organize, and interpret
information to form a meaningful picture of the world
•Examples: tattoos, brightly colored hair
•High involvement - ANSWER-•Greater attention
•Deeper processing
•Result: Develops strong attitudes and purchase intentions
•Example: buying a car or refrigerator
•Low involvement - ANSWER-•Less attention
•Peripheral route processing
•Result: Generates weak attitudes and increased use of cues (i.e. rules of thumb)
•Example: buying a pack of gum
Extended - ANSWER-•a purchase decision that involves a significant amount of risk
•Example: buying a house or car
ANSWERS
•Internal search for information - ANSWER-•Low involvement or routine
decisions/purchases
•Familiar with product
•Example: where you do your weekly grocery shopping
•External search for information - ANSWER-•High involvement, often big purchases
•Not familiar with product
•Example: buying a stove
•Perceived benefits vs. perceived costs - ANSWER-•Is it worth the time and effort to
search for information about a product or service?
Example: Buying a car vs. buying a bag of chips
Locus of control - ANSWER-•one's perceptions about the underlying main causes of
events in his/her life
Internal - ANSWER-•individuals believe they have more control over the outcomes of
their actions and engage in more search activities
•Example: Merida from Brave, most entrepreneurs
External - ANSWER-•individuals believe that external factors or fate determine the
outcome of events and don't place an emphasis on gathering information
•Example: Students who believe their grades are due to luck or circumstance
Performance risk - ANSWER-•one is concerned that a product will not perform well
•Example: Magic Bullet Blender
Financial risk - ANSWER-•one is concerned that a product costs too much initially
and/or down the road
•Examples: trendy purses and dry clean only clothing
Social risk - ANSWER-•one is concerned that others might not regard their
purchases positively
•Examples: purchasing feminine products, purchasing lots of cheap alcohol in bulk
Physiological/safety risk - ANSWER-•fear that a product might cause bodily harm if it
does not perform properly
•Example: Takata airbags
Psychological risk - ANSWER-•has to do with the way a product/service will make
you feel if it does not convey the right image
, •Leads to "bigger is better" thinking
•Example: Ugly car
•Universal sets - ANSWER-•All possible choices within a product category
•Example: All types of beverages
•Retrieval sets - ANSWER-•Choices that can be readily brought forth from memory
•Ex: Sunny Delight, Capri Sun
•Evoked sets - ANSWER-•Choices that the consumer would consider when making a
purchase decision
•Ex. Dr. Pepper, Coke, Sprite
Determinant attributes - ANSWER-•features of a product or service that are
important to the consumer and differ from those of the competitors
•Example: buying a car
Consumer decision rules- - ANSWER-the set of criteria that consumers use to make
purchase decisions
Compensatory decision rule - ANSWER-assumes that the consumer makes
tradeoffs such that the good outweighs the bad
Noncompensatory decision rule - ANSWER-•the consumer makes their decision
based off of one characteristic of a product
•Example: Louboutons
•Cognitive dissonance=buyer's remorse - ANSWER-We want to decrease cognitive
dissonance
Comprised of three components - ANSWER-•Cognitive—what we believe to be true
•Affective-what we feel
•Behavioral—the actions we undertake in regards to the issue
•Perception - ANSWER-•Process by which we select, organize, and interpret
information to form a meaningful picture of the world
•Examples: tattoos, brightly colored hair
•High involvement - ANSWER-•Greater attention
•Deeper processing
•Result: Develops strong attitudes and purchase intentions
•Example: buying a car or refrigerator
•Low involvement - ANSWER-•Less attention
•Peripheral route processing
•Result: Generates weak attitudes and increased use of cues (i.e. rules of thumb)
•Example: buying a pack of gum
Extended - ANSWER-•a purchase decision that involves a significant amount of risk
•Example: buying a house or car
