HADM 3347- Class Notes

HADM 3347- Class Notes - HADM Consumer Behavior 10:41:00...

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Unformatted text preview: HADM Consumer Behavior 15/12/2009 10:41:00 ← 9/3 Two Systems of the Mind ← ← Rational System: ← Logical/semi-rational thinking ← Slow deliberate & effortful ← Requires conscious awareness ← Affects behavior via conscious appraisals ← Quick to develop and change ← Operates on abstract symbols, words & numbers ← Uses negatives ← Highly differentiated and integrated ← ← Experiential System: ← Magical associational thinking ← Fast, automatic, and effortless ← Can operate outside awareness ← Affects behavior via vibes and or riming ← Slow to develop and change ← Operates on concrete images, metaphors, narratives, feelings and emotions ← Ignores negatives ← Differentiated and integrated crudely ← ← Ratio Bias • Which tray to you want to pick from? Logically it does not matter, yet 76% of subjects choose option A, and 50% paid a dime for the opportunity to choose form their preferred option – they think there are more opportunities. The experiential systems operates on frequencies, not ratio. The rational system can deal with ratios well, but the experiential deals with frequencies and from the frequency perspective, A is a better choice. ← Does social isolation make you cold? YES – exclusion makes you colder. Heart and Mind in Conflict: 9/8 Ego Biases • Self Views o Spotlight Effect: I am the focus of other’s attention – Who’s Who o Optimism Bias: I am luckier than others. – Online security behaviors o Illusion of Control: I can control events – Gambling o Over-Confidence: I make accurate predictions and claims – Investing o Self-Serving Attributions: I am responsible for success but not failures- Weight loss, smoking, sports. • Spotlight Effect: Wear a Barry Manilow shirt – who can even tell you who is on your shirt? Guessed 45 – 50 % - Reality is that no one really notices – Its something about the self, we think WE are the focus of attention and people will notice things about us rather than clothing in general. o Make promises that this product will make people notice you more (In either a good or bad way) Increases social pressures in some ways • Optimism Bias: The positive events, there is a postive sign ie. People think positive events are more likely to happen to them, whereas negative events are less likely to happen to them. o The more you think you can control something, the more optimism bias you have. Likelihood that it will happen to you vs. likelihood of an average person. o Implications for CB: Promotional and lottery effects, mailing in a rebate, insurance (they aren’t going to get hurt), making splurges based on future optimistic expectations. •...
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This note was uploaded on 02/10/2010 for the course HADM 3347 taught by Professor Lynn during the Fall '09 term at Cornell.

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HADM 3347- Class Notes - HADM Consumer Behavior 10:41:00...

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