CB Session 15 - MKT 613- Consumer Behavior Prof. Carolyn...

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MKT 613- Consumer Behavior Prof. Carolyn Yoon Session 15 (Mar. 16) Notes Judgment and Decision Making slide: IN CLASS INDIVIDUAL ASSIGNMENT- give ads and ask which heuristic the ad uses then in class discussion of why that is. Toothpaste, pc, cell phone, tshirt, home printer Slide: Low Effort Judgement Processes Remember the attribute boxes, now on the web, you can easily infer what it is that people are doing from their click streams, so that data is getting analyzed and being modeled, by marketers and academics. It is an overwhelming amount of data to go through. Expedia would like some help in exchange … the set that comes up would be the ones that you would most likely consider, because you get the full list. They are thinking, maybe we could present the information to consumers so it can be more useful. In order to get there, they need to look through search histories to see how it is that people search and so on. The funny part of this is that they have given my colleagues two weeks worth of data. What is the problem with this? What if you started searching before the beginning of the two weeks, and what if you continue searching beyond that? There are some portions of the population clearly doing that. If you were planning on taking a trip, and you wanted to find out about airfare for Europe in this summer, you might be searching for a lot longer than two weeks. My colleagues negotiated this by saying how about giving us a month’s worth of data? That would get us closer, a lot more relevant. This is what keeps us awake at night. When people are making decisions… for most things it could be that you don’t have the time or resources to do that. And the more low effort it is, you will get a higher proportion of emotion based processes. I don’t think it would be wrong to say that, but it is easier to go with your feelings. It isn’t like choosing the wrong insurance plan, it is more like choosing the wrong chewing gum. You are going to try it, and then decide whether you like it or not. It is not like you are going to search for all the information you need about chewing gum. … for the low effort cases, if you think about how feelings guide your decisions, that would get you most of the way there. Having said that, there are some low effort judging processes that I would like covered, because this work is just so elegant. Before the early 1980s, the Economist view of the world, the idea was that people think rationally. They optimize, and so there were a couple of researchers, Amist… and he got his phD from the Psych department here, and his work has had an enormous amount of impact. And what they say basically is that humans are subject to biases. They fall short of being able to think rationally and here are some systematic ways that people make judgments. It has to do with the world view which is that people are satisfied with what is good
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CB Session 15 - MKT 613- Consumer Behavior Prof. Carolyn...

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