1. In a consumer’s buying process, an extensive external information search is especially important when:
a. the consumer has frequently purchased the item in the past
b. there is a high downside risk of making an incorrect decision
c. the cost of the item is low
d. the consumer’s purchase confidence is high
e. there are few substitute products
2. Suppose you’re moving to a new city and need to buy a new house. Which of the following would represent the best example of “non-compensatory” processing in your decision making?
a. realizing that the exterior color of the house is not important, since it can be painted after the purchase
b. being willing to give up some yard space, in order to be in a more urban area closer to shopping and restaurants
c. setting a strict upper limit on the purchase price of the houses you consider, based on your income level
d. investigating the background and credibility of your real estate agency
e. searching among different banks for a low mortgage rate, balanced with good customer service