Chapter 11 JUDGMENT AND DECISION MAKING LOW CONSUMER

Chapter 11 JUDGMENT AND DECISION MAKING: LOW CONSUMER EFFORT 1

Chapter Overview l l Low vs. High Effort decision making Low effort judgement Low effort decision making processes Low effort cognitive decision making » simplifying strategies l Low effort emotional decision making “Why should I care about the brand of batteries I buy? They’re all the same!” 2

Low- vs. High-Effort Decision Making High Effort Low Effort BELIEFS (think) ATTITUDES (feel) BEHAVIOR (do) ATTITUDES (feel) Learning BELIEFS (think) 3

Low Effort Judgement Heuristics commonly used » simplified decision rule l l Representativeness: Comparison to known alternatives Availability: More accessible or vivid impressions are more impactful 4

The Availability Heuristic l Base-rate info may be ignored » You get a “lemon” and stay away from that car manufacturer, whose general record of reliability is good l Law of small numbers » Experience of few people generalized to entire population 5

Choice Simplification Strategies l l Satisficing decisions: Good enough is good enough! Choice tactics, e. g. : » » » price affect performance normative recommendation (WOM or from salesperson) 6

Learning of Choice Tactics l Operant conditioning » reinforcement – – good performance liked product social approval solved problem Repurchase » punishment “Not bad!” – poor performance – caused problems Change behavior 7

Low-Effort Thought-Based Decision Making l Simplifying Strategies » » » Performance-related H Brand loyalty P Normative 8

Individual Application Exercise Apply each of the simplifying strategies to the decision of where to buy gasoline for your car. l Provide a specific, detailed statement to illustrate each choice tactic (i. e. , “I buy gas at Chevron because……”). l Discuss with the class l 9

Low-Effort Feeling-Based Decision Making l Feeling » affect referral » brand familiarity l l Variety-Seeking Impulse Buying 10

Chapter 11 Review l Low effort Judgement Processes » heuristics l Low effort Decision-Making Processes » low effort vs. high effort » operant conditioning l Low effort cognitive decision making » simplifying strategies (5) l Low effort affective decision making » Feelings, variety seeking & impulse buys 11