Ch9: Judgment and Decision Making Based on High Effort

Ch9: Judgment and Decision Making Based on High Effort

1. judgment

   • likelihood
   • goodness/badness
     • priming
   • anchoring/ adjustment processes
     • eg. starbucks in Japan
     • country of origin
   • imagery/ visualisation
     • eg. online demonstration evoking vivid mental images of product use,
     • encourages brand-based processing cos images are organised by brand > attribute
   • biases
     • confirmation
       • eg. apple
     • self-positivity
       • eg. insurance marketers (social risk)
     • negativity
       • DO NOT engage when consm alr committed to a brand
     • mood and bias
     • prior brand evaluations
       • eg. apple ipod as precedent

2. decision making

   • cognitive
     • compensatory
     • non-compensatory
   • affective
     • pros
       • emotions - more satisfaction
       • gather thoughts and make judgments more quickly
     • eg. fearful ppl tend to see more risk in new situations than angry ppl
   • deciding criteria
     • goals
     • time
       • high-level (abstract)/ low level (concrete) construals
       • present/ future oriented
     • framing
       • initial anchor/ ref. pt.
         • gains/losses
           • prospect theory
             • losses > gains, similar to endowment effect
               • ownership increases value/loss of item
               • marketer's perspv: full money back guarantee, free shipping
         • time period
           • pay by day vs. year (series of small expense vs. large one-time expense)
         • buying/selling
       • priming
         • hedonic/ symbolic attributes
           • eg. placing wine next to gourmet foods - nice meal vs. buy 1 bottle of wine only
   • consideration set
     • attraction effect (comparison w. inferior brands)
     • goals
       • prevention
         • risk-averse, preserve status quo
       • promotion-focused
         • willing to try new things if they think changing will achieve GOALS/growth/devlpmt

3. factors/ contextual effects

   • emotions, feelings
   • values, attitudes, motivations, ability, opportunities (MAO) to process info

4. compensatory model

   • consideration set
     • weight them in terms of how impt. the attributes are
       • best overall score
       • other attributes can compensate for -ve ones
     • mental cost-benefit analysis
     • evaluate good attributes
   • brand
     • multiattribute models
       • theory of reasoned action (TORA) ch.5
   • attribute
     • additive difference model
       • 2 brands at a time

5. non compensatory model

   • negative info - eliminate fr. consideration set
   • less cognitive effort due to cutoff levels
   • brand
     • conjunctive model
       • min. cutoff for each attribute that represent the absolute lowest value willing to accept
     • disjunctive model
       • acceptable levels
   • attribute
     • lexicographic model
       • order attributes according to importance, comparing one attribute at a time
     • elimination-by-aspects model
       • similar to lexic. but w. acceptable cutoff

6. decision delay

   • act quickly
     • eg. coupons and discounts
   • act slowly
     • offer additional info. to increase chances that brand will be chosen

7. consumer characteristics

   • expertise
     • consumption vocab eg. wines - buttery, dry, smooth
   • mood
     • good mood - more willing to process info to make decision, high arousal - greater brand encoding and recall
   • time pressure
     • base decision on fewer attributes
     • heavier weight on negative info, eliminate bad alternatives
   • extreme aversion
     • compromise effect
       • brand gain share when it's an intermediate than compromise choice
     • tendency to find moderately priced options more attractive than options that are either very ex
   • metacognitive experiences
     • ease of recollection, process new info, influencing retrieval ease

8. characteristics of the decision

   • info. availability
     • more info > more complex> but might have greater satisfaction
     • useful? relevant?
   • group context
     • self-presentation, social desirability bias, uniformity of choice, conformity
     • beer marketers - show group members enjoying only the advertised brand > reinforces strong social norms and encourages consumers to order that brand when drinking in a social setting