Chapter 8 Flashcards
judgement
Is an evaluation of an object or estimate of the likelihood of an outcome or event. Judgement is a critical input into the decision process, but is not the same as decision making
decision making
Involves making a selection among options or activities
In a consumer context judgements are
Evaluations or estimates regatding the likelihood that products and services possess certain features or will perform in a certain manner. Given the importance of judgement in consumers information processing, marketers need to understand judgements about
likelihood
goodness or badness
Mental and emotional accounting
Estimation of likelihood
The determination of the probability that something will occur
Judgements of goodness/badness
Reflect our evaluation of the desirability of the offerings features.
When making judgements about likelihood and goodness/badness, consumers often employ an anchoring and adjustment process
Anchoring and adjustement process
Consumers first anchor the judgement based on some initial value and then adjust or “update” the evaluation as they consider additional information
How consumers use Mental accounting
Consumers use mental accounting to categorize spending and saving decisions into accounts we mentally designate for specific consumption transatctions, goals, or situations
Emotional accounting
Suggests that the intensity of the positive or negative feelings associated with each other “account” is another important influence on buying behavior
Consumer decision making biases
Consumer bias
Self positivity bias
Negativity bias
Mood and bias
Prior brand evaluations
Prior experience
Difficulty of mental calculations
confirmation bias(Judgement biases)
If consumers are susceptible to a confirmation bias they will focus more on judgements that confirm what they already believe and will hold those judgments with more confidence
Self-positivity bias (Judgement biases)
Consumer can make judgements about the extent to which they or others are vulnerable to having bad thins happen to them
Negativity bias (Judgement biases)
With a negativity bias, consumers give negative information more weight than positive information when tehy are forming judgements
Mood and bias (Judgement biases)
Mood can bias consumers judgement in several ways.
First, your mood can serve as the initial anchor for a judgement
Second, moods bias consumers’ judgements by reducing their search for and attention to negative information
Third, moods can bias judgements by making consumers overconfident about the judgements they are reaching
Prior brand evaluations (Judgement biases)
When consumers judge a brand to be good based on their past exposure to it, they may subsequently fail to learn information about the brands attributes that affect its acqual quality
Prior experience (Judgement biases)
Customers learn from their previous experiences, which can be helpful but may also bias judgements during future decisions
Difficulty of mental calculations (Judgement biases)
When comparing various prices or discounts, the ease or difficulty of calculating the difference will affect consumers judgement of the size of these differences
cognitive decision making models
Describe how consumers systematically use information about attributes to reach a decision
Researchers also recognize that consumers may make decisions on the basis of feelings or emotions, using affective decision-making model
Two types of cognitive models
Compensatory vs noncompensatory model
brand vs attribute model
Compensatory model
Consumers evaluate how good each of the attributes of the brands in their consideration set is and weigh them in terms of how important the attributes are to their decisiosn
