10. 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

It can straightaway be said that a consumer does not need an extensive external information search when :
There are few substitute products and therefore the consumer has multiple options to purchase
Consumer has already purchased the item and in the process making him/ her knowledgeable about the product
The consumer’s purchase confidence is high which would help him/her to have the luxury of not doing extensive research before purchasing the product
The cost of the item is low and therefore the customer does not face high financial risk if he /she makes a wrong decision because of lack of extensive research.
The situation changes when there is a high downside risk of making incorrect decision which would make him/her to do an extensive research and collect as much information as possible in order to make an appropriate informed decision.
Therefore , correct answer would be “b. there is a high downside risk of making an incorrect decision “
IN A CONSUMER’S BUYING PROCESS , AN EXTENSIVE EXTERNAL INFORMATION SEARCH IS ESPECIALLY IMPORTANT WHEN THERE IS A HIGH DOWNSIDE RISK OF MAKING AN INCORRECT DECISION
 
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