week 9

Question 1

Judgement define

Answer 1

evaluation of an object regarding the likelihood that products and service possess certain features of will perform in a certain manner

Question 2

anchoring and adjustment define

Answer 2

starting with first evaluation and adjusting it with additional info

Question 3

imagery define

Answer 3

imagining an event when making judgements

Question 4

mental accounting define

Answer 4

categorising spending and saving decisions into mental accounts

Question 5

anchoring

Answer 5

People make estimates by starting from an initial value and adjust it to get a final answer.

Question 6

how consumers use anchoring to buy

Answer 6

when making purchasing decisions, consumers adopt a low anchorage (deciding only to buy 1 or 2) and then adjust upward depending on price, budget etc.

Question 7

how can retailers use anchoring to increase buying

Answer 7

can put deals on so that the adjustment of the anchor affects the buying decision and they buy more

Question 8

underconsumption define

Answer 8

budgeting not enough money to something

Question 9

overconsumption

Answer 9

budgeting too much money to something

Question 10

how do you make budgeting an effective self-control mechanism?

Answer 10

make budgeting inflexible

Question 11

what is self-positivity bias?

Answer 11

a persons belief that they probably wont experience a negative event.

this can lead to bad spending choices.

reducing their self-positivity bias is a preventive behavior

Question 12

what is negativity bias?

Answer 12

bas stronger than good - negative events have greater weight than good.

positive info is valued less than negative

Question 13

can mood affect negative or positive bias?

Answer 13

Yes. mood may attribute (or misattribute) this feeling to a target and theu may use it for eveluation

Question 14

True or false. Mood will have minimal effect of the evaluation on latter options

Answer 14

True.

Question 15

attraction effect define

Answer 15

addition of inferior brands to a consideration set increases the attractiveness of dominant brands

Question 16

what are the two stage shopping process involving goals

Answer 16

1. initial stages:
   uncertain about what to buy/spend (have abstract goals)
2. second stage: determine goals and action tenacity (have concrete goals)

Question 17

what affect does external factors have on the first and second stage of shopping process?

Answer 17

much effect on the first and little on the second. external factors can change goals in the frist but not in the second once they have been cemented.

Question 18

what is the construal level theory (CLT)

Answer 18

Explains which product attributes are considered at each stage.

Theory says that individuals think about actions or events abstractly when theyre distant, and in more broader categories when they draw near.

Question 19

which product attributes occur at each stage and how does CLT explain it

Answer 19

1. formation of consideration set:
   stage where the consumer is mentally distance from the purchase and abstract qualities (ie quality) are crucial
2. final purchase decision: low level, concrete or peripheral features (ie price) are important

Question 20

what is reference dependence?

Answer 20

where the carriers of value are gains and losses defined by a reference point

Question 21

what is loss aversion ?

Answer 21

losses are worse than gains

Question 22

what is diminishing sensitivity?

Answer 22

the value of both gains and losses decreases with their size

Question 23

what is the conjunctive model?

Answer 23

where consumers set up minimum cutoffs for each attribute that present the absolute lowerst value they are willing to accept

Question 24

Disjunctive Model

Answer 24

where consumers set up acceptable levels for the cutoffs for each attribute to find options that are good

Question 25

additive difference model

Answer 25

where consumers evaluate differences between the two brands on each attribute and then combine them into an overall preference (preference list/pros and cons)

Question 26

Lexicographic model

Answer 26

where consumers order attributes in terms of importance to select an option

Question 27

elimination by aspect model

Answer 27

similar to lexigraphic, but uses the notion of an acceptable cutoff

Question 28

What is effective forecasting?

Answer 28

the preditcion of the emotional consequence of decisions. (ie anticipated emotions)

Question 29

what are the two main things affecting high-effort decisions

Answer 29

1. consumer characteristics

2. characteristics of the decision