Chp 1 Basics: Fundamental of Choice and Behavior Flashcards
Central Fixation Bias
Tendency to first look at the middle of sth important for poisitioning and communication
Gaze cascade effect
Looking at products leads to
preference leads to further looking
Consideration set
Alternatives that are considered acceptable for further consideration in decision-making
Operant conditioning
The desired behavior may be learned over a period of time, as intermediate actions are rewarded (“shaping“)
stimulus - desired outcome - reinforcement - leads to repeat purchases
Habit formation
a learning process in operant conditioning, which
reliably learns associations between a stimulus and the
associated motor response
habit formation in operant conditioning involves the repetition of behaviors in response to specific stimuli, with reinforcement playing a key role in shaping and strengthening those habits over time.
Construct evalustions two categories
- Categorical Process
- Piecemeal Process
Categorization Process
Evaluation of a choice alternative based on the evaluation of
the category to which it is assigned
The Categorization Process - Consequences
Categorization evokes the schema of the category – important role of Memory – Schema is a set of associations linked to a concept or category (e.g., luxury car) * Attributes
* Benefits
* Drawbacks
* Users
* Use situations – Because of this categorization and schema-application, we can then more easily…* Make inferences about the new target * Evaluate the new target * Include or exclude the new target in our consideration set * Decide whether we are satisfied/dissatisfied with the new target
The Piecemeal Process
Constructing an evaluation of a choice alternative by considering its advantages and disadvantages along important product dimensions
– Determine the particular criteria or product dimensions to be used in evaluation
– Evaluate each considered alternative based on the identified criteria
– Cutoff: restriction or requirement for acceptable performance
– Signals: product attributes used to infer other product attributes (e.g., using high price to infer higher quality
Noncompensatory Evaluation Strategies
A product’s weakness on one attribute cannot be offset by strong performance on another attribute
example: Lexicographic strategy: brands are compared initially on the most important attribute, and
the winner is chosen
Compensatory Evaluation Strategies?
- Simple additive
- Weighted additive
Simple additive
the consumer counts or adds the number of times each alternative is judged
favorably in terms of the set of salient evaluative criteria. The alternative with the largest
number of positive attributes is chosen
Weighted additive
judgments about an alternative’s attribute performance are weighted by
the attribute’s importance. The alternative with the best overall performance is chosen
Basic Markov-Model
- Fully stochastic choice model buying decision as random mechanism
- Result of the model: Likelihood that a customer will choose a certain product/brand
Attraction Model of Product Choice:
Luce’s Choice Axiom
Biased utility perception implies probabilistic choice model
Probabilistic model: Determination of purchase probability instead of purchase decision Purchase probability is proportionate to the utility of an alternative
