Chapter 10 - Chapter 10- Judgment and Decision Making based...

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Chapter 10- Judgment and Decision Making based on Low Effort Low- Effort Judgment Processes When MAO is low, consumers are motivated to use … in order to keep effort involved in making judgments LOW! o Heuristics o Rule of thumb The Representativeness Heuristic Representativeness Heuristic- making a judgment by simply comparing a stimulus with the category prototype or exemplar o Can lead to bias judgments not actually taking the time to think about your selection o This is why packaging of store brand is so similar to the prototype brand… wanting you to be confused! The Availability Heuristic Availability heuristic- basing judgments on events that are easier to recall o Example: word of mouth or past experience o These are biased judgments Base-Rate Information- how often an event really occurs on average o Don’t use this because information is not often available o As information becomes more specific, rely less on base rates Law of Small Numbers- the expectation that information obtained from a small number of people represents the larger population Low- Effort Decision Making Processes o As a consumer, you don’t have the time to make mundane decisions over things that are not very important to your life… The Unconscious Low-Effort Decision Making o Are not even aware of how or why you are making decision o Environmental stimuli are one reason you make unconscious decisions o Fragrances o Brand Logos o Certain places or social situations o Presence of other people Conscious Low-Effort Decision making Traditional Hierarchy of Effects- sequential steps involved in decision making… o Thinking Feeling Behaving o Studies show that this step by step process doesn’t apply to all decision making situations Low-Effort Hierarchy of Effects o Thinking Behaving Feeling o Consumer enters process with a low-level set of beliefs based on brand familiarity o Based on advertisements, in store ads, or prior use o Without any actual feelings, the consumer will buy the product
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o While the consumer actually owns the product, they form an attitude (if they have a strong enough opinion regarding the product/ service) o Also can base a decision solely on feelings (such as positive feelings) rather than on actual knowledge or beliefs. Using Simplifying Strategies When Consumer Effort is low o Most common form of decision making… o How the message is framed effects how the consumer will react Two Additional Factors of LOW EFFORT: 1. Goal of low-effort is not neccessiarly finding the optimal brand… o If one were finding the optimal brand, then they would be using high effort! o Thus, consumers are willing to satisfice Satisfice- finding a brand that satisfies a need even though the brand may not be the best brand 2. LOW EFFORT= More frequent and repeated o Consumers rely on their previous experience/ feelings from that experience Choice Tactics- simple rules of thumb used to make low-effort decisions
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This note was uploaded on 02/25/2012 for the course MGMT 4375 taught by Professor Eixmann during the Fall '11 term at Texas State.

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Chapter 10 - Chapter 10- Judgment and Decision Making based...

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