Chapter 9 - Short Answer

Individual Decision Making

Perspectives of Decision Making:

What is the rational perspective in decision making?

Assumes consumers carefully gather and evaluate information to maximize value, weighing pros and cons logically.

What is constructive decision making?

Suggests consumers don’t have pre-existing preferences—choices are shaped by context, framing, and task.

What is the experiential perspective?

Emphasizes emotional responses and holistic experiences (e.g., choosing music or art).

Types of Consumer Decisions:

What is habitual decision making?

Choices made out of habit with little to no thought or info search.

What is limited problem solving?

Involves some effort and use of simple decision rules, but not extensive research.

What is extensive problem solving?

In-depth decision making with significant effort, information search, and comparison.

Decision-Making Process Steps:

What are the 5 steps of consumer decision making?

1. Problem Recognition

2. Information Search

3. Evaluation of Alternatives

4. Purchase Decision

5. Post-Purchase Behavior

What triggers problem recognition?

Internal stimuli (e.g., hunger) or external stimuli (e.g., ads).

What is a consideration set?

Brands the consumer seriously considers for purchase.

What is the inert set?

Brands the consumer is aware of but indifferent toward.

What is the inept set?

Brands the consumer actively rejects.

Decision Rules:

What are compensatory decision rules?

A weakness in one area can be offset by strength in another (e.g., good price makes up for average design).

What is the simple additive rule?

Option with the most positive attributes wins.

What is the weighted additive rule?

Attributes are weighted based on importance before scoring.

What are non-compensatory rules?

Poor performance on one attribute cannot be compensated by other strengths.

What is the lexicographic rule?

Choose the option with the best performance on the most important attribute.

What is elimination-by-aspects?

Eliminate options that don’t meet cut-offs on key attributes.

What is the conjunctive rule?

Accept only options that meet minimum standards on all attributes.

What is the disjunctive rule?

Choose an option that exceeds standards on any attribute.

What are common heuristics in decision-making?

• Price = Quality

• Brand loyalty

• Country of origin

Mental Shortcuts and Biases:

What is mental accounting?

How people track and manage their spending and financial decisions.

What is prospect theory?

People evaluate outcomes as gains or losses relative to a reference point; more sensitive to losses.

What is loss aversion?

Losses hurt more than equivalent gains feel good.

What is decision framing?

How the same information (e.g., “95% lean” vs. “5% fat”) influences choice depending on its presentation.

What is the sunk-cost fallacy?

Continuing a behavior due to prior investment (e.g., using an old $300 coat to "get value out of it").

Familiarity, Inertia & Brand Loyalty:

What is inertia in decision-making?

Buying out of habit without evaluating alternatives

What is brand loyalty?

A strong, positive attitude and emotional attachment to a brand.

What is the mere exposure effect?

The more often people see something, the more they tend to like it.

How does familiarity influence consumer choice?

Familiar options feel safer and are more likely to be chosen—even without deeper evaluation.