03 - Capable of making informed choices? Flashcards

(32 cards)

1
Q

Three main pillars that lead to consumers whom are not able to make complete informed choices

A

1) mindless consumers
2) environmental factors
3) psychological factors

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2
Q

Mindless consumers

A
  • on average 225 decisions a day
  • for decions we rely on simple rules of thumb and heuristics
  • limited cognitive capacity
  • we make decions everywhere: school, work, stores etc.
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3
Q

Environmental factors

A

How/where the products are place/presented highly influences behavior.

  • Suppose a buffet. Where the unhealthy or healthy lays at the front vs. in the back.
  • Or riding a bike in a big city in the VS
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4
Q

Psychological factors (underlying phenomena)

A

1) Construal level
2) Literacy
3) Computational ability
4) Perceptions
5) Inferences & negatively correlated attributes

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5
Q

Construal level theory

A

People use concrete, low-level constructs to represent the near things and abstract, high-level constructs to represent distant events.
- or simpler -> things look different from up close compared to up far.

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6
Q

The categories of distance (within construal theory)

A

1) Temporal distance -> now or in the future
2) Spatial distance -> locational distance
3) Social distance -> friend/family or complete stranger
4) Hypothetical distance -> unlikely to happen to me or friend/family vs. likely to happen

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7
Q

Psychological distance

A

A subjective experience that something is close or far away from the self / here or now

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8
Q

Low psychological distance -> aspects

A
  • low-level construal
  • concrete
  • contextual
  • pragmatic
  • FEASIBILITY
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9
Q

High psychological distance -> aspects

A
  • high-level construal
  • abstract
  • integrated
  • idealistic
  • DESIRABILITY
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10
Q

Temporal distance

A

You think in now with your pragmatic self and in future with your idealistic self:

  • cake eating example…
  • energy saving example…
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11
Q

Spatial distance

A
  • refugee example
    People want to help refugees as long as it is far away in their country. Not enthousiast to let them into their streets/cities or country.
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12
Q

Social distance

A
  • example of earthquackes in Groningen

rEdUcInG gAs ExTrAcTiOn MeAnS hIgHeR TaXeS

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13
Q

Hypothetical distance

A
  • Mac Donalds example…
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14
Q

Advertising & construal level theory -> effectiviness

A

Processing is most efficient if distance and presentation of the medium are congruent

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15
Q

Advertising & construal level theory -> low vs. high construal level

A
  • low level -> very concrete (kid doesn’t eat, without my help). But it will cost me money…
  • high level -> Africa needs our support. But is not a sustainable solution.

One not better than the other, be aware of the effect of using different levels.

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16
Q

Construal level -> costs & benefits

A
  • Costs -> immediate and certain

- Benefits -> often delayed and potential

17
Q

Solutions to construal level theory

A

1) pre-commitment
2) adapt a mental construct before decision making: desirable vs. feasible features
3) reduce immediate costs: e.g. offer a service to clean out the attic increased home insulation

18
Q

Health literacy

A

the degree to which individuals have the capacity to obtain, process and understand basic health information and services needed to make appropriate health decisions.

19
Q

Energy literacy

A

an understanding of the nature and role of energy in the world and daily lives accompanied by the ability to apply this understanding to answer and solve

20
Q

Computational ability

A

Computational skills are the selection and application of arithmetic operations to calculate solutions to mathematical problems

21
Q

Perceptions

A
  • consider the experiment of people playing basketball
  • bowl sizes: bigger bowls means serving more
  • spoon sizes: same effect
22
Q

Inferences

A

Conclusions reached on the basis of evidence and reasoning

23
Q

Example inferences

A

High price -> high quality
Healthy -> less tasty
Healthy -> expensive

24
Q

Vice food

A

“wants” -> food that provides immediate pleasure experiences but contribute to negative long-term outcomes. Such as weight gain & alcoholism

25
Virtue food
"should" -> food that is less gratifying and appealing in the short-term but has fewer negative long-term consequences.
26
Wholesomeness and virtue foods
Wholesomeness signaled by an organic label can be a positive quality cue. E.g. decreased fertilization might make vegetables more tasty
27
Wholesomeness and vice foods
Wholesomeness signaled by an organic label may reduce the amount of enjoyment and pleasure ascribed to vice foods.
28
Why do negatively correlated attributes exist?
- Consumers have a lay theory that firms resources are zero-sum - Consumers assume that a company sacrifices quality for sustainability, unless it is an unintended side effect
29
Firms resources are zero-sum assumption
Resources that are invested in greening a product are diverted from improving its quality.
30
Competing views on negatively correlated attributes:
- Moral licensing | - Brand concepts
31
Moral licensing view
A sustainable label can reduce feelings of guilt associated with the consumption of hedonic products
32
Brand concepts view
Self-enhancement values (e.g. power/wealth) associated with luxury brands do not match with the self-transcendence values (e.g. social justice) connected to sustainability.