LECTURE 9 - CONSUMER DECISION MAKING

LECTURE 9 - CONSUMER DECISION MAKING

1. Rational Choice Theory

2. 1. Consumers perceive value beased on reference point

3. 2. Losses loom larger than gains

   • The Endowment Effect

4. 3. People prefer the status quo

5. 4. People are influenced by sunk costs

6. 5. People are influenced by counterfactuals

7. 6. People are influenced by the consideration set

   • Compromise effect
   • Attraction effect

8. 7. People are influenced by attribute framing

9. Abundance of choice & Making an painful/unpleasant choice

10. Improving choice satisfaction: Maximazing vs. Satisficing

11. Judgement & Decision Making