Decision: High-Low Effort Flashcards
high effort
spend more time and energy
high motivation
- high price, important for work, makes me look good, expresses who I am
high ability - more knowledge about product features
high opportunity - more time available to think
low effort
spend less time and energy
low motivation
- lower price, less important to work, does not make me look good, does not express who I am
low ability - less knowledge about product features
low opportunity - less time to think
how do we make high effort decisions?
collect information about high-effort decisions (features, attributes)
put together a brand-attribute matrix
brand attribute matrix
often used in advertising
brands compare themselves to competitors to show their advantages
Types of decision rules
- compensatory
- non-compensatory
Compensatory rule
theory of reasoned action
whenever we make a decision, we first form an attitude towards the brand
weakness in one attribute can be compensated by strength in another attribute
4-mental process
the theory suggests that our attitude toward a brand consists of a 4-step mental process
1. people list attributes
2. people think about performance and importance
3. people combine performance and importance
4. people add utility (value)
how can managers use compensatory rule?
performance: focus on one attribute to improve
- product development (how to improve)
- advertising (how to advertise to consumers)
importance: change current beliefs, create new beliefs to improve importance
compare with competition
non-compensatory rule
some attributes cannot be compensated, minimum cutoffs
2 kinds of cutoffs
Conjunctive model - survival
- chosen alternative is the only survival alternative
- assume all attributes are highly important
Disjunctive model - mixed cutoffs
- chosen alternative has the greatest number of acceptable features
which model do consumers prefer?
non-compensatory
- allow consumers to reduce information and only sum up all qualified attributes
cutoffs reduce brands in consideration set, reduce info
counting is easier than multiplication, lower effort
High-effort decision-making approaches
cognitive - thinking-based choices
- brand-attribute matrix
- decision rule
affective - based on emotions
- emotions at POS - present emotions at the store
- affective forecasting - how we’ll feel in the future
Low-effort decision-making approaches
cognitive - heuristics
- performance, price, habit, loyalty
affective - heuristics
- liking, familiarity, variety, impulse
