MRKT 452 Lecture Notes - Lecture 3: Gun Control, Profit Margin, Evolutionary Psychology
2 Mar 2018
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What are they: estimates, of risk, of liking, of time, of similarity, of value for money, of quantity etc. , they are important because they influence decisions. Judgement heuristics: availability, vivid (easily recalled) information is more important than less vivid information for risk/probability judgments, vivid events - increased perceived probability, ex: air france flight 447 increases limit accident insurance sold. Trying to make the accident seem more vivid, to increase probability of purchasing more insurance: ex: gun sales increase after mass shootings, people want to protect themselves, can also be used my managers. Makes the savings more vivid: for probability judgements, vivid information is considered somewhat more true than non-vivid information. Easily remembered info has a ring of truth: ex: store brands have the same packaging as national brands. Human gains are hardwired to pay more attention to losses: there are instances where fat/negative associations are not downturned.
