Low-effort judgment and decision making

Low-effort judgment and decision making

1. Simple judgments processes

   • Representativeness heuristic
     • compares a stimuli with a exemplar or category prototype
   • Availability heuristic
     • Basing judgments on events that are easier to recall.
     • bias
       • Base-rate information
         • How often an event really occurs on average.
       • Law of small numbers
         • small number of people represents more people

2. Decision-Making Processes

   • unconscious
     • affected by
       • environmental stimuli
   • conscious
     • leads to
       • Low-effort hierarchy of effects
         • thinking behaving-feeling
           • cognitive
   • consumers´tactics
     • Satisfice
       • a brand that satisfies a need even though is not the best brand.
     • Choice tactics
       • Simple rules of thumb
       • how are learned?
         • Operant conditioning
           • behavior is a function of
             • reinforcements
               • satisfaction
                 • usage
             • punishments
               • bad experience
                 • Usage
           • repeat purchase
       • can also be
         • Performance-related tactic
         • Habit
         • brand loyalty
         • price tactic
         • Normative tactic
         • affect tactic
         • variety seeking
   • Thought-based
     • Performance-related tactics
       • Tactics based on benefi ts, features, or evaluations of the brand.
     • Habit
       • Doing the same thing time after time
       • shaping
         • leads consumers through steps
     • Brand loyalty
       • a strong preference for it.
       • *multi brand
     • Prince related tactics
       • Zone of acceptance
       • Price perceptions
       • Deal-prone consumers
         • more likely to be influenced by price.
     • Normative influences
       • based on others‘ opinions.
         • can result from
           • direct influence
           • vicarious observation
           • indirect infl uence
   • Feeling-based
     • Affect-related tactics
       • Affect referral
         • we remember our feelings for the product or service.
       • Brand familiarity
         • co-branding
       • Variety seeking needs
         • when boredom is below
           • Optimal stimulation level (OSL)
         • Vicarious exploration
           • Seeking information simply for stimulation.
       • Impulse purchase
         • unexpected purchase based on a strong feeling.