HADM 3347- Class Notes

HADM 3347- Class Notes - HADM Consumer Behavior 9/3 Two...

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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
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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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