How Does Habitual Decision Making Differ from Extended Problem Solving

question 45

Multiple Choice

How does habitual decision making differ from extended problem solving?

• A)Extended problem solving uses behavioral learning,while habitual decision making relies upon cognitive learning.
• B)Consumers engaged in extended problem solving perceive less risk than consumers involved in habitual decision making.
• C)The level of involvement for habitual decision making is lower than it is for extended problem solving.
• D)Habitual decision making involves significant cognitive dissonance,while extended problem solving rarely involves cognitive dissonance.
• E)Consumers who are seeking to develop their loyalty to a brand would be more likely to make habitual decisions than use extended problem solving.

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Definitions:

Reservation Price

The highest price a consumer is willing to pay for a particular good or service, reflecting the limit of their willingness to purchase.

Expected Revenue

The total amount of money anticipated to be received from sales of goods or services, based on expected sales volumes and prices.

English Auction

A common auction format where the price starts low and is bid upwards by participants, with the item being sold to the highest bidder.

Reservation Price

The top price a consumer agrees to pay for a product or service.