How Does Habitual Decision Making Differ from Extended Problem Solving

question 43

Multiple Choice

How does habitual decision making differ from extended problem solving?

• A)Consumers engaged in extended problem solving perceive less risk than consumers involved in habitual decision making.
• B)Consumers who are seeking to develop their loyalty to a brand would be more likely to make habitual decisions as opposed to extended problem solving.
• C)The level of involvement for habitual decision making is lower than for extended problem solving.
• D)Consumers who are buying an anniversary cruise would most likely use habitual decision making because the level of involvement is higher than with extended problem solving.
• E)Extended problem solving uses behavioral learning,and habitual decision making uses cognitive learning.

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Definitions:

Balance Sheet Hedge

A financial strategy used to reduce the risk of currency fluctuations affecting the value of assets and liabilities reported in a company's balance sheet.

Exchange Rate Fluctuations

Variations in the value of one currency relative to another, affecting international trade and investments.

Global Companies

Enterprises that operate in multiple countries around the world, often focusing on international sales, partnerships, and supply chains.

Dividend Policy

A company's approach to distributing profits to its shareholders, determining the size and frequency of dividend payments.