video 1: decisions high low effort plus class notes

Question 1

high effort

Answer 1

more time, energy, in depth before making a choice. Certain types of products we have high motivation
Motivation comes from either high price of the product, or if the product is important to us, if the product symbolizes us, expresses who we are
can come from high ability , high opportunity

Question 2

low effort

Answer 2

less time, less energy in making a choice, this may come from low motivation, low pricwe don’t know much about the product
Low effort decisions may stem from: Low motivation, low price, less important for work,low ability, low opportunity

Question 3

step 1 of making high effort decisions

Answer 3

We find info about different brands of cars within our price range. We might find info about the attributes/ features of the brands
We can form a brand attribute matrix → tables of brands and

Question 4

step 2 of making high effort decisions

Answer 4

What decision rule do we want to use → how do you want to use this info pick one brand

Question 5

two day decision rules?

Answer 5

compensatory and non compensatory

Question 6

compensatory

Answer 6

aka TORA
we form attitudes toward the brand that we are considering
we use a mental process and formula which is attitude= performance times importance
more positive attitude= more likely we will choose that brand

Question 7

Tora four step process

Answer 7

1. list attributes
2. think about performance and importance of each
3. combime perfromance/ importance of each
4. add up the utility (value) from all attributes

Question 8

how can managers use the Tora

Answer 8

create customer surveys to ask people t form attitudes and how imortant , have to decide though which attributes to focus on and helps managers figure out which attributes should be advertised to consumers

Question 9

how do managers affected attributes

Answer 9

They could add new attributes and highlight their importance, change beliefs or compare with competition.

Question 10

how is the tora a tool for social marketers

Answer 10

want to market ideas and products for not for profit but for positive social; change ,Design ad around important attributes in different customer segments

Question 11

why is it called the compensatory decision rule

Answer 11

weakness in one attribute will be compensated in the strength in the other attribute . true to a certain extent

Question 12

non compensatory decision rule

Answer 12

there are minimum cutoffs

Question 13

two models of the non compensatory

Answer 13

conjuctibe and disjucntive

Question 14

conjunctive

Answer 14

high cutoffs . you have a minimum set of requirmemeys and you eliminate whatever doesnt meet the minimum requirmemets. Last brand left standing is the one you choose. Like a survival method
We apply this model when all of the attributes are highly important
What your buying has to fit everything you want or else you dont get it.

Question 15

disjunctive

Answer 15

some attributes are more important or less. We use different cutoffs. Lower cutoffs= less important attributes and vise versa.
We count the number of qualified attributes
We choose the alternative that has the greatest number of acceptable features
We count the number of qualified attributes and the largest number of qualified attributes we choose

Question 16

when theres a lot of info, what decision model os used

Answer 16

Non compensatory decision is used when theres a lot of info, a lot of brands to reduce the info and then will use compensatory after

Question 17

when making high effort decisions, what else do we use

Answer 17

our emotions

Question 18

two tyoes of affective influences when making high effort

Answer 18

1) Emotions at point of sale
Often new product trials happen for high effort products
hedonic products
Ex: testing an iphone in the store
Using a product creates positive emotions
After we try out the product, we see if we want to buy it or not depending on how much pleasure it gave us
2) Affective forecasting
Making predictions about we are likely to feel in the future
Ex: auctions. We tend to think we need this item now and will lose out if we dont buy it. We overestimate and pay more at auctions.

Question 19

low effort decisions involve which two heuristics

Answer 19

Cognitive heuristics (logic based shortcuts like choosing the cheapest)
Affective heuristics (emotional based shortcuts like choosing something familiar )

Question 20

different types of heuristics

Answer 20

performance based, price based, attribute based, habitual based

Question 21

low effort vs high

Answer 21

low decisions are based on single or few attributes

Question 22

two different phases

Answer 22

We have to look inside the consumers mind and see how the info flows: two steps which is phase 1 problem recognition and search and phase 2 is decision making and judgment

Question 23

problem recognition

Answer 23

Shows the gap between actual and ideal state

Increase gap by→ increase motivation to act:
Point out low actual state
Provide high ideal state
Contrast low actual vs high idea states → put side by side visually

Question 24

low actual state

Answer 24

Point out low actual state
How to point it out
Prove that the actual state is low
Show that an item is in low quality and you need a product to fix it
Give a reference point. Ex: crest selling whitening strips. They show teeth compared to a kleenex and shows how yellow it is
ex : Oral hygene app→ when visually demonstrating what people are missing they apply it to themselves more, the oral hygene app will show you your mouth then recommend many products to you based on your mouth and the picture you gave of your mouth

Question 25

provide high ideal state

Answer 25

Ex: good looking people Aspiring to something Customers have become wary and have caught into the fact that adversiitng sells smtg that is unrealistic → you change your appearance on social media, fake news, facetune We value authenticity → brands are rebranding themselves are more authentic. Ex: dove

Question 26

sources of authenticity

Answer 26

1) Realistic ideal points in retailing/ advertising 2) Transparent and fair manufacturing process→ “not tested on animals, good for the environment” 3) Original designs/ handmade products → not mass produced, Amazon has a handmade section, and specific quantity sold 4) Firms origin story with founders→ humanize the brand, flesh and blood person behind the company, ex: brand origin story, background of founders 5) Firms behaviour consistent with its values/ mission statement→ go on ben and jerry website or patagonia, they list everything they do not talking about sales but they list it so that they can increase sales

Question 27

Construct low actual vs high ideal states

Answer 27

Put them side by side Ex: before and after software showing nose jobs

Question 28

internal search

Answer 28

Easily recalled (familiar) brand in memory have an advantage Consumer search is moving from internal to external

Question 29

memory

Answer 29

brand names brand attributes

Question 30

external search

Answer 30

Ex: google Brand names Brand attributes Consumers searching more within online retailers Consumers searching more within online streaming services Want to be high on this

Question 31

organic search

Answer 31

Organic search: search engine optimization Google creates an index of the internet based on website info When a search term is entered, google creates a ranked list of relevant pages using a proprietary algorithm based on: page quakoty of web, repeated use of terms on website, quality and quantity of links pointing to the website

Question 32

brand attribute matrix can be formed through which types of searches

Answer 32

external and internal

Question 33

what is variety seeking

Answer 33

Variety seeking is another form of decision-making (want something different than usual) There are some product groups that you seek variety over time→ ex: clothes. Zara does fast fashion to keep having new products seeking variety is something that should be satisfied we desire something different

Question 34

Different customer segments can have different important attributes

Answer 34

men vs women may have different opinions on shampoo Lyft offers an option where you get a lower price but you have to wait longer, another option for customers is to pay more to but get a car sooner→ Customers can self select Allows customers to self-segment

Question 35

primary vs secondary data

Answer 35

Primary is to go directly to customers yourself whereas secondary is to get already published data or to use a second party to get information about consumers

Question 36

numerical cutoffs

Answer 36

price

Question 37

tora strentghs and weaknesses

Answer 37

Strengths: ensures we don't miss important attributes relevant to decision-making Ensures rational/long-term analysis of information Allows objective comparisons between brands/ choice options At dealerships they will only have a few brands not very many so you have to use the TORA system Weakness: Incomplete set of attributes can bias results Does not permit cutoffs on attributes Does not highlight the primacy of feelings (ex: people fall in love with a mini cooper after seeing it/ testing it in person)

Question 38

Affective and cognitive appeals in advertising

Answer 38

When new iphone is launched, not info heavy, more pictures→ want to create positive emotions Emotions come automatically Emotions influence subsequent thinking through confirmation bias The smart way to market is to ask did: i market the product to induce positive emotions in consumers

Question 39

five senses to influence choice

Answer 39

Visual, audio, Smell→ Makreter has more control over visual, audio smell (ex: tv, radio, print, stores). Smell is not that widely used so you can use this sense to stand out Taste and touch→ Marketer has less control over taste and touch (ex: product sampling by consumers). Not in our hands. We dont know if people will stop and smell our product sampling, mo

Question 40

smell in departament stores

Answer 40

If you go to the bay, you have tp go through the perfume section to get to clothes Smell influences decision by mood, memory and brand → liking for the brand

Question 41

smell and mood

Answer 41

Pleasant smell→ positive mood→ liking Positive mood→ leads to people staying more in the store→ longer you stay more likely to buy

Question 42

memory route

Answer 42

Useful bc unlike the other 5 sense, memory and smell are very close to each other in the brain Memory and smell are very close in the brain and evoke emotional reactions in consumers→ can use this to promote products ex: candle companies that offer candles to make candles to remember special events (first camping trip, first christmas, etc)

Question 43

language and decision making

Answer 43

Language should avoid negative feelings and create positive feelings

Question 44

Cultural differences in decision making

Answer 44

Should use real people instead of celebrities, compare your brand with ocmeptitiors→ these things will differ depending on the country Feature real people who use the product Endorsed by famous people you respect Research marketing techniques that work best in each specific country Marketing techniques, including the use of real people, celebrities, and competitive comparisons, must be tailored to each country’s cultural context. Conducting local market research and understanding cultural norms and consumer behavior is essential to create effective campaigns. By adapting to the local culture, brands can build stronger connections and foster greater trust among consumers.

Question 45

how to increase the gap

Answer 45

point out low actual state provide high ideal state contrast low actual vs high ideal states

Question 46

high ideal states may be seen as

Answer 46

not autehntic and we value authenticity so brands are rebranding themselves are more authentic

Question 47

why do easily recalled brands have an avdnayage

Answer 47

bc we like comfort

Question 48

Online Retailers/Streaming Services Have Advantages on External Search

Answer 48

* Can recommend / sell products to consumers * Can get consumer search data for targeted product offers / developing new products

Question 49

luxury products

Answer 49

Forced to asked staff for price information => consistency principle * More reliance on visual information => emotional decision-making no price info provided cant use price cutoff

Question 50

Single (or two) attribute choice is not the only way to make low effort decisions - there are other ways making high effort decisions

Answer 50

Variety-seeking (vs. regular) decision-making, e.g., Cointoss * Group (vs individual) decision making, e.g., Choozum

Question 51

Smell Must Be Consistent With

Answer 51

brand

Question 52

ability vs opportunity

Answer 52

ability (internal factors) opportunity (external factors)