Lecture 5

Question 1

When MAO is low

Answer 1

• Simplify the cognitive process

* Reduce the effort

Question 2

Two Major Heuristics

Answer 2

1. Representativeness Heuristic
   - Comparing a stimulus with the category prototype or exemplar
   - Marketing implication – easily recalled
2. Availability Heuristic
   - Basing judgments based on events that are easier to recall
   - Marketing implication – provide base rate information

Question 3

Low effort decision-making process

Answer 3

1. Unconscious low effort decision making
   - Make a decision without being consciously aware of how or why you are doing so
   - E.g. influenced by scent your brain responds before thinking
2. Conscious low effort decision making

• Traditional hierarchy of effects – beliefs (think) → attitudes (feel) → behavior (do)
• Hierarchy of effects in low effort situations – beliefs (think) → behavior (do) → attitudes (feel)

Question 4

Learning Choice Tactics

Answer 4

• Operant conditioning – views behavior as a function of previous actions and of the reinforcements or punishments obtained from these actions
• Reinforcement – good experience leads to reinforcement because the consumer feels his or her needs have been satisfied, works for either the product or the choice tactic
• Punishment – a bad experience may lead to punishment then lead to consumer to reevaluate the choice tactic resulting in the use of a new tactic o upgrade to the tactic
• Repeat purchase – learning occurs through repetition as the same act is repeatedly punished or rewarded over time