DECA Retail Merchandising Practice Exam

Which purchase decision process requires a high level of effort and time due to significant risk?

1. Habitual decision making

2. Limited problem solving

3. Extended problem solving

4. Impulse buying

The correct answer is: Extended problem solving

The purchase decision process that requires a high level of effort and time due to significant risk is extended problem solving. This approach typically occurs when consumers are facing a purchase that is considered important or involves a considerable investment, such as buying a car, a home, or expensive electronics. In extended problem solving, consumers engage in thorough research and analysis, comparing various options, assessing potential benefits and drawbacks, and considering the long-term implications of their choices. This process is fueled by the potential for significant financial or emotional stakes, which makes it essential for the consumer to ensure they are making the right decision. In contrast, habitual decision-making generally involves low involvement and little risk, as it refers to routine purchases that consumers make without extensive thought, such as groceries or household items. Limited problem solving engages consumers who need to gather some information but not to the same extent as in extended problem solving, often for moderately priced items. Impulse buying, on the other hand, is characterized by spontaneous purchases driven by immediate desire rather than a careful decision-making process.