Chapter 7 Flashcards
In the first step of decision making, is a problem required?
No problem is necessary.
Is an extended search high risk or low risk?
High risk
What are the 4 types of risks?
Monetary, social, psychological, and utilitarian.
Opportunity recognition
Ideal state goes up, actual state goes down
What is Primary Demand?
creating a need or desire for a product. (general)
What is Secondary Demand?
Creating a desire for a brand. (specific)
Fast cognitive processes
Heuristics (shortcuts)
Slow cognitive processes
Effort & focus
Recency effect
Delay between primary info & info collected at a later date. The info collected at a later date carries more weight.
Does earlier information shape our interpretation of later information?
Yes.
Personal biases
Compare information to our personal standards.
Rationale
We weigh all the objective info then we select the best choice.
When would all information be evaluated simultaneously?
In an ideal world.
Discomfort makes us….
More rational and Critical
Type 2 thinking is…
Methodical and calculating
Automatic thinking is…
Fast and accurate. Characteristic of experts in their fields.
Shopping momentum
When we decide to buy one item but leave with more than we intended.
Behavioural influence
Situational cues that increase our probability of buying one item over another.
Foot in the door
Agree to a small favour/purchase and then make a big one.
Experiential influence
Irrational emotional elements that influence decision making.
What percent of department store purchases are impulse purchases?
40%
What % of purchases in grocery stores are impulses?
67%
Habitual Decision making
Automatic, low involvement, habitual. EX. buying toothpaste.
Extended problem solving
Reserved for important purchases, such as those associated with our self concept, self identity, or social standing.
External Search
Collection of data from multiple sources.
Internal Search
Review of memory & experiences
Evoked set
Brands that come to mind as viable options.
Inept set
Product failure
Inert set
Consumer is unaware of the product.
Consensus heuristic
If family & friends think its a good idea, then it is.
Lexicographic rule
Organizes features that are valued with the highest valued listed 1st
