Chapter 7-8-9 Review Quiz, Consumer PSych

Utility theory suggests that consumers make decisions by:

• Using shortcuts and heuristics.

• Evaluating every alternative rationally to maximize outcomes.

• Choosing the first option that meets their needs.

• Considering emotional attachment to a product.

Which is a critique of Utility Theory in consumer decision-making?

• It overlooks the role of heuristics in decisions.

• It assumes consumers always act irrationally.

• It suggests decision-making is impulsive.

• It overestimates consumers' awareness of their choices.

Prospect Theory adds which two key concepts to decision-making?

• Compensatory strategies and satisficing.

• Endowment and value.

• Utility and heuristic biases.

• Rationality and framing.

According to Prospect Theory, why might someone purchase a lottery ticket?

• They use a compensatory strategy to evaluate options.

• They overvalue potential losses.

• They focus on the likelihood of gains.

• They consider it a rational investment.

Which stage of Prospect Theory involves setting a reference point?

• Editing

• Coding

• Weighting

• Valuation

A consumer choosing a car solely based on mileage reflects which strategy?

• Weighted additive strategy.

• Satisficing.

• Lexicographic strategy.

• Majority of conforming dimensions.

How does the elimination-by-aspects strategy function?

• It compares all attributes equally.

• It eliminates options failing to meet the most critical attribute.

• It evaluates options by majority rule.

• It uses emotional responses to finalize decisions.

The Jedetski et al. (2002) study on web design found that:

• Non-compensatory strategies are used when product comparisons are complex.

• Compensatory strategies lead to lower consumer satisfaction.

• Consumers prefer websites with fewer alternatives.

• Heuristics do not influence online decisions.

Which strategy combines elements of both compensatory and non-compensatory approaches?

• Elimination by aspects

• Frequency of good and bad features

• Majority of conforming dimensions

• Satisficing

Which decision-making approach relies heavily on emotional and impulsive reactions?

• Rational decision-making style.

• Spontaneous decision-making style.

• Dependent decision-making style.

• Avoidant decision-making style.