DECA Retail Merchandising Practice Exam

What is defined as a set of alternatives that a customer evaluates when choosing a retailer?

1. Market segment

2. Consideration set

3. Extended problem solving

4. Habitual decision making

The correct answer is: Consideration set

The correct answer is a consideration set, which refers to the group of retailers that a customer considers when making a purchasing decision. This set is crucial for marketers and retailers to understand, as it represents the options that are actively in a consumer's mind as they evaluate where to shop. The consideration set typically includes a limited number of retailers that the customer deems acceptable based on factors such as price, quality, convenience, brand reputation, and past experiences. In the context of retail, the consideration set plays an important role in influencing consumer behavior. A customer may have a wide range of retailers available to them, but they will ultimately narrow down their choices to a few that they will actually contemplate buying from. This selection influences not only purchasing decisions but also marketing strategies, as retailers aim to drive their presence into the consideration sets of their target consumers. Market segment refers to a group of consumers who share similar characteristics and behaviors, but it doesn’t specifically describe the evaluative process in choosing a retailer. Extended problem solving involves a more thorough decision-making process that typically arises with high-involvement purchases, while habitual decision making describes choices made with little thought or effort, often for low-involvement products. Thus, these concepts differ significantly from the concept of a