Lecture 10

Question 1

Low effort decision making

Answer 1

Most lfrequent type of decision making
Goal is not to find the best possible brand (ie to optimise) but to find a brand that satisfies a need (ie to satisfied)

High relevance of decision heuristics/ choice tactics for quick and effortless decision making

Question 2

Low effort decision making: two important heuristics

Answer 2

Representativeness heuristics= making a judgement by simply comparing a stimulus with the category prototype

Eg brand similar to the prototype > good quality

Availability heuristics = basing judgements on events that are easier to recall, rather than on base rate info

Question 3

Low effort decision making - learning choice tactics

Answer 3

Understand how consumer apply choice tactics and update then based on purchase outcomes

Reinforcement = satisfaction
No reinforcement = indifferent
Punishment = dissatisfaction

Question 4

Operant conditioning

Answer 4

Behaviour is a function of previous actions and the reinforcement and punishment obtained from these actions.

Question 5

Habit

Answer 5

Repetitive purchase, but no strong preference for a brand

Question 6

Brand loyalty

Answer 6

Repetitive purchase due to strong preference for a brand

Question 7

Price tactic

Answer 7

Buy the cheapest brand

Question 8

Normative

Answer 8

Normative tactic is buying the brand someone else buys / recommends

Question 9

Low effort - feeling based

Answer 9

Affect tactic - global evaluation- how do we feel about the brand

Brand familiarity - mere exposure effect

Variety seeking - deviating from habit to purpose - should I try something else

Question 10

Mere exposure effect

Answer 10

Mere exposure effect is attitude towards an offering increases, the more familiar a consumer becomes with it

Question 11

Low effort decision making: impulsive purchase

Answer 11

Characteristics of impulsive purchases:

Intense feeling of having to buy the product immediately

Disregard of potentially negative effects

Feeling of euphoria and excitement

Conflict between control and indulgence

Question 12

Key takeaways

Answer 12

In low effort decision making consumers simplify cognitive processes using feelings, simplifying heuristics/ choice tactics to guide their decisions

Goal in low effort decision making is not to find the best possible brand (ie optimise) but to find a Brad. That satisfies a need

Rather than comparing various brands in detail, consumers apply choice tactics and learn from the usage/ outcome of their purchase decision. That is experiences drives choice via learning (reinforcement vs punishment)

Differentiate between severel choice tactics (habit, brand loyalty, price tactic, Brian to tactic, affect tactic, brand familiarity, variety seeking) usage depends on the situation and updates depends on the outcomes