Chapter 9 - Judgement & Decision Making Flashcards
What might a purchase be a response to?
A perceived problem
What are the 4 rational steps of a consumer wanting to make a purchase?
1) Problem recognition
2) Information search
3) Evaluation of alternatives
4) Product choice
What happens after the purchase is made?
We reflect on the quality of our decision and learn based on how the choice worked out
The learning process influences the likelihood that the same choice will be made in the future if a similar situation comes up
What is a problem for modern consumers?
That they have too MANY choices, not too few
What is consumer hyperchoice?
One of modern-day consumers’ biggest problems is that they have too many choices, not too few (as compared to how it used to be)
Having too many choices forces us to make repeated choices that can drain psychological energy, decreasing our ability to make smart decisions
What is the rational view of decision-making?
People calmy and carefully integrate as much information as possible with what they already know, painstakingly weight the pluses and minuses of each alternative, and arrive at a satisfactory decision
It also assumes that we collect the most valuable units of information first
What is wrong with the rational view of decision making?
There are a lot of instances where the decision making process is almost automatic, snap judgements
We cant always take the time to collect all of the information, evaluate the alternatives and make a satisfactory choice. If we are ordering fast food or coffee, not much thought goes into that
How is the decision-making process different for high-involvement products vs low-involvement products?
High Involvement: For things like a car, house, or phone we will spend weeks agonizing over details, making sure our decisions are rational and thought out (weighing the pros and cons).
Low involvement: coffee, vending machine, which brand of pens to use. These things are often snap decisions where we don’t spend much time if at all evaluating the consequences.
What is purchase momentum?
It occurs when initial impulses actually increase the likelihood that we will buy even more
What is constructive processing?
evaluating the effort required to make a particular choice and choosing a strategy best suited to the level of effort required
What is the process called that we use to evaluate whether to invest the brain power into evaluating a decision or to go without automatic choice?
Constructive processing
What is the behavioral influence perspective?
When a customer’s decision is a learned response to environmental cues (low involvement)
What must a manager concentrate on form behavioral influence perspective?
they must concentrate on assessing the characteristics of the environment
physical surroundings, product placement, things that influence the target market
What is habitual decision-making?
decisions that are made with little or no conscious effort
routine, minimal effort, efficient way to operate, repetitive
What is a bad thing about habitual decision-making? (for marketers)
When a marketer tries to introduce a new way of doing an old task, you must unfreeze their habits
This can be an uphill and challenging battle
What is limited problem-solving?
decisions that are in the middle of automatic and in-depth processing/thinking.
they arent necessarily motivated to search for information or evaluate each alternative rigorously, but they aren’t simply acting out of habit either
Seeking for a ‘good enough’
System 1 - fast
Use of heuristics
What assists limited problem-solving to make a decision?
Decision rules that are cognitive shortcuts act as general guidelines so we don’t have to start from scratch for every decision.
What is extended problem solving?
Decisions that correspond to carry a fair degree of risk, and is closest to the traditional decision-making perspective.
System 2 - slow
What is the process of extended problem-solving for the consumer?
the consumer tries to collect as much information as possible (from their memory and from outside sources),
each product is carefully evaluated
What is problem recognition?
When we recognize a difference between our current state and where we want to be
What is information search?
When the consumer surveys their environment for appropriate data to make a reasonable decision
What is internal and external search in the information search step?
Internal search - scanning our memory banks / prior experience
Often this isn’t enough, so we rely on external search where information is obtained through advertisements, friends, or from people-watching
What is directed learning?
on a previous occasion, we searched for relevant information or experienced some of the alternatives. Therefore we have a pretty good existing knowledge
What is incidental learning?
Passive exposure to advertising, packaging, or sales promotion
Low dose exposure over time
