CONSUMER PSYCHOLOGY Flashcards
What is logical decision making?
Logical decision making uses reasoning to study a problem critically and make a reasoned choice.
What is rational decision making?
A step-by-step process of weighing pros and cons to make the best choice.
What is consistent decision making?
Making decisions efficiently without rushing, ensuring enough information is gathered.
What is the Weighted Additive Strategy (WADD)?
Multiplying attribute values by their weight to calculate the best option mathematically.
What is the Lexicographic Strategy (LEX)?
Selecting the option with the highest value on the most important attribute first.
What is the Satisficing Strategy (SAT)?
Using cut-off points for attributes and choosing the first option that meets them (Herbert Simon).
What is Utility Theory?
Von Neumann and Morgenstern’s theory on how products provide value to convince consumers to buy.
What is Prospect Theory?
Kahneman & Tversky’s theory that people value gains and losses differently, leading to risk-averse choices.
What is the Elimination by Aspect/Attribute (EBA) strategy?
Gradually eliminating options based on the most important attributes until one remains.
What are compensatory strategies?
Consumers evaluate all attributes, where strong attributes can compensate for weak ones.
What are non-compensatory strategies?
Consumers reject options based on weak attributes without considering strong attributes.
What is consumer involvement?
The level of cognitive effort consumers apply to a purchase decision.
What is consideration in consumer decision making?
A subset of brands/products that consumers actively evaluate before making a purchase.
What is availability heuristics?
Judging likelihood based on how easily similar instances come to mind.
What is representative heuristics?
Making judgments based on comparing a product to the most well-known example in a category.
What is anchoring in decision making?
Relying on an initial piece of information too heavily when making choices.
What is the difference between System 1 and System 2 thinking?
System 1 is fast, intuitive, and automatic, while System 2 is slow, deliberate, and analytical (Kahneman).
What is choice blindness?
Failing to notice when presented with a different option than originally chosen, yet justifying the new choice.
