Chapter 2 Flashcards
What are 3 types of decision making ?
Cognitive , Habitual & Emotional
Cognitive decision making
Rational, based on weighing pros and cons (e.g., buying a car).
Habitual decision making
Routine purchases (e.g., everyday items like groceries).
Emotional decision making
Driven by emotions (e.g., eating chocolate when stressed).
What is involvement in decision making ?
The relevance of a product to a consumer based on needs, values, and interests.
High involvement Vs. Low involvement
- High Involvement: Important purchases requiring time, effort, and money (e.g., car, wedding dress).
- Low Involvement: Less important purchases that require little time or effort (e.g., candy).
Monetary Risk
Financial consequences of a poor choice (e.g., buying an expensive home).
Functional Risk
Risk that the product may not perform as needed (e.g., a faulty phone).
Physical Risk
Physical harm from the product (e.g., health risks from smoking).
Social Risk
Potential embarrassment or social judgement (e.g., buying unfashionable clothes).
Psychological Risk
Impact on self-esteem or guilt from a choice (e.g., buying luxury items).
Covariation Heuristic
Inferring quality from observable attributes (e.g., cleanliness of a used car suggesting reliability).
Country Of Origin Heuristic
Associating certain qualities with products from specific countries (e.g., Swiss watches).
Familiar Brand Name Heuristic
Trusting well-known brands as a shortcut.
Higher Prices Heuristic
Assuming higher cost equals better quality.
