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Econ3100 Exam 2 Questions with Highly Verified Answers 2024 Test
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Econ3100 Exam 2 Questions with Highly Verified Answers 2024 Test
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Econ3100 Exam 2 Questions with HighlyVerified Answers 2024 Test
Consumer Behavior - Correct Answers the buying behavior of consumers- the
individuals, families, and households who buy goods and services for personal
consumption
Needs and Individuals' Relationships with their Goods - Correct Answers Self Concept
Attachment- products establish user's identity
Nostalgic Attachment- link to one's past
Interdependence- part of daily routine
Love- product elicits strong emotion
Stethoscope, Barbie vs. Brats
Buying Process - Correct Answers Pre Purchase
1. Assessing Need
2. Searching for Information
3. Evaluating Alternatives
4. Selecting
Purchase
5. Buying
Post Purchase
6. Evaluating
Pre-Purchase - Correct Answers The consumer tried to determine how much pleasure
or pain will be derived form a product or service
1. Assessing Need (vs. Wants) - Correct Answers consumers sense a discrepancy
between current state and desired state
2. Searching for Information - Correct Answers Involves sorting behavior. Information
either internally (go over in mind) or externally (looking at outside info) is accessed
External Information Search - Correct Answers in the economic theory of choice, the
assumption is that the consumer has perfect information. information makes choice
meaningful. consumers cannot make a good decision unless they have adequate
information.
Challenges to Obtaining Information - Correct Answers A. # of products or varieties is
overwhelming
B. Complexity of goods
C. Time costs are great
D. Consumers have high expectations
,E. False sense of security
F. Some information is useless or inaccurate
A. Choice is overwhelming - Correct Answers deregulation has brought with it more
choices as well as increased competition. it is a sign of a healthy economy to have a
larger number of products and services, but this diversity may create confusion for
consumers.
ex. telephone service, airline tickets
B. Complexity of goods - Correct Answers assessment becomes difficult. new
technology is more complex therefore assessment is more complex and the information
is either more complex or not available.
C. Time costs are significant - Correct Answers it takes time to find information. the
time has to come from somewhere.
what are you going to give up doing so that you can gather information?
D. Consumer expectations are high - Correct Answers increased levels of education
translate into consumers who demand more information and accurate information.
E. False sense of security - Correct Answers consumers assume that they are
protected in the marketplace, and do not practice caveat emptor ("let the buyer
beware")
F. Useless or inaccurate information - Correct Answers useless info: on a hair dryer,
do not use while sleeping.
some information that is given may be inaccurate. it then is up to the consumer to be
wary and judge whether the information is correct.
Consumer Information should be: - Correct Answers a) objective
b) valid and credible
c) understandable
d) complete
e) up-to-date
a) objective information - Correct Answers non-biased, source of information is not
making a profit.
Consumer Reports is a good source of objective information. Why? They do not accept
advertisements.
b) valid information - Correct Answers information comes from reliable sources.
credible research has been done. information could be proven to be correct.
, c) understandable information - Correct Answers if seller desires to provide the
consumer with information, then the info should be written so that a consumer can
understand what the words mean. No double-speak nor too technical.
Assume 6th grade education.
d) complete information - Correct Answers incomplete information may actually
mislead the consumer. stating only the good points about a product and leaving out the
problems gives consumers the impression that the product is without flaws.
ex. Harry Potter publisher leaving out 40 pages in the middle of the book
e) up-to-date information - Correct Answers information about a product should be
relevant for now. consumer reports sometimes reports information on a model that has
been discontinued; hence, information may not be relevant anymore.
Benefits of Information Search - Correct Answers lower tag price, lower full price or
consumer cost, satisfaction from shopping (retail therapy), knowledge of what is
available
Costs of Information Search - Correct Answers time costs, cost of gasoline or public
transportation, cost of obtaining information (NY Times, WSJ), emotional costs
When should you search for more information? - Correct Answers Expensive product
Something you will have a long time
When there is large price dispersion in the market
When there is a large variation in quality
Information Search Rule - Correct Answers Consumers will search for information as
long as the cost of the search is less than the expected savings from the search.
CS < ES
Rules of Thumb (used instead of searching for information) - Correct Answers Using
Seals of Approval, Buying top-of-the-line merchandise, Buying high-priced goods,
Buying brand names, Buying the large size because think it has a lower unit price
(Costco)
Types of Goods - Correct Answers Search- consumer can gather relevant and
pertinent info before purchase
Experience- consumer obtains the relevant info after purchase
Credence- consumer never obtains relevant info
Search Goods - Correct Answers a product or service with features and characteristics
easily evaluated before purchase. most goods fall into this category.
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