PR 605 Lecture Notes - Lecture 17: Bounded Rationality, Decision-Making

7 views2 pages

periwinklemammoth360

16 Dec 2020

School

Ball State University

Department

Public Relations

Course

PR 605

Professor

Ingrid Cummings

For unlimited access to Class Notes, a Class+ subscription is required.

Document Summary

The link between perception and individual decision making. Decisions are choices from two or more different alternatives. In an ideal case, decision making is an objective process. However, the way that people make decisions and their choice"s quality are mainly influenced by those people"s perceptions. An important factor of behavior at all organizational levels deals with individual decision making. Decision making happens when you"re reacting to a problem. This means there is a discrepancy between the current state of affairs and what the desired state is. This means there is a need to consider courses of action alternative to what is being done in the current state of the problem. Unfortunately, most of the problems you will experience aren"t neatly labeled and easy to identify right from the get go. The problem of a person is the satisfactory state of affairs of another person.

Related Questions

The purpose behind much of advertising is to influence each of the five Consumer Decision Making process (Problem Recognition, Information Search, Evaluation of Alternatives, Product Choice (i.e. Purchase) and Outcomes (i.e. Postpurchase). Each stage of the Consumer Decision Making process has techniques that help consumers to manage the stage and then move onto the next one successfully. Eventually, the consumer moves to purchase (where we get excited to make the sale) but don't underestimate how important the last stage (post purchase) is to making additional sales in the future. Below are guidelines that show basic techiniques used to target and manipulate each Consumer Decision Stage through advertising.

Below are some issues that you will want to consider as you evaluate each of the five chosen advertisements. Please remember that your goal is not simply to answer these questions, but to provide insights into the consumerâs decision making process that you feel would be useful to a marketing manager (e.g., if an ad triggered the consumerâs decision to purchase the product). Other areas to comment on would be level of involvement, etc.

Consumer Decision Making Stage:	Considerations for Stage:	Common Ad Techniques:
Problem Recognition	What problems does this product solve for the consumer? â¢ What triggered the decision to purchase this product? â¢ Was this the first time the consumer purchased such a product? Define and discern the Actual and Desired States	Ask a question (Whatâs for dinner tonight?) Show before (actual state) and after (desired state) Use the word ânewâ or âintroducingâ to initiate curiosity.
Information Search	â¢ Did the consumer seek information about the product and about various brands? How was this information collected, and how much information was collected? â¢ Was the consumer searching for any advertisements for the product? What was the consumerâs reaction to these advertisements?	Match amount of information with type of product. Direct consumers to website, free kit or other information venues. Show role models that âlookâ like the target market. Show the entire line of product offerings (all the flavors and colors, etc.) Testimonials, etc.
Evaluation of Alternatives	â¢ How many alternatives were considered? How were they selected?â¢ What features and characteristics of the product were most important to the consumer? Salient and Determinant defined attributes. â¢ How important was the brand of the product to the consumer?	Featuring specific variables that the product is known for (ex. Volvo=Safety). This is known as âpositioningâ a product. Competitive method (brand compares themselves to âleading brand or categoryâ) Comparative method (brand compares themselves to another brand by name (Coke vs. Pepsi)
Product Choice	â¢ Did any other people play a role in the decision process? Describe theroles that each person played. â¢ How was the final choice determined? How carefully was the decision made? â¢ Where did the consumer make the purchase? Why? â¢ Did the consumer pay full price for the product?	Tell consumers where and how the product is sold. Offer many ways to pay for the product. Divide payments. Offer sales promotion (coupons, rebates)
Post-Purchase Evaluation	â¢ How is the product used and consumed? How does the consumer feel when he or she uses the product? â¢ What is the meaning of this product to the consumer? Does it merely serve a function for the consumer, or does it say something about who the consumer is? Does the Ad encourage repeat purchase or loyalty to the brand- how?	Show awards the brand has won. Show how a brand should be consumed. Allow consumers many ways to return the product. Allow consumers to easily provide feedback. Reward consumers loyalty

This assignment asks you to find one ad that addresses each of the needs of the five stages (in other words five different ads). This means that there must be five different ads for the total project, one for each stage (all ads are different from one another). Create a Power Point Presentation that shows how the advertiser is addressing the needs of the consumer for the specific Consumer Decision Making stage.

*Be aware that there is a helpful power point demonstration in a conference opened this week marked as "Advertising and the Consumer Decision Process (Ad Examples)". This is informative only and does not need to be commented on.

First, show the ad in a slide and then follow-up with a slide which explains (bullet form) why the ad slide targets the Consumer Decision Making process stage. ALL ADS MUST BE STILL ADS (NO VIDEOS or LINKS). Therefore the ad MUST be able to be copied and pasted within the power point slide (NO LINKS). Here is the format of the presentation:

Slide 1: Name, date

Slide 2: Problem Recognition Ad

Slide 3: Explanation why it addresses this stage

Slide 4: Information Search Ad

Slide 5: Explanation why it addresses this stage

Slide 6: Evaluation of Alternatives Ad

Slide 7: Explanation why it addresses this stage

Slide 8: Product Choice (Purchase) Ad

Slide 9: Explanation why it addresses this stage

Slide 10: Outcomes (Postpurchase) Ad

Slide 11: Explanation why it addresses this stage

Slide 12: Conclusion

In the conclusion of the slide presentation choose which ad is most effective (overall) and why.

Logistics Run Down:

-No more than 18 slides in length (includes cover page and bibliography)

-Include a cover page and bibliography of sources. Outside sources (esp. learning resources from weeks covered) are encouraged to be cited and used.

-Organize and utilize the headings given above.

-No more than 2 grammatical/spelling errors are allowed (please proof before submitting).

-Text is required to be in Times Roman, 12 pt font, double space the text.

- Keep voice in business third person. Do not include visuals in text analysis, if need to add create an appendix and refer your reader to such.

Target Statement for Assignment 8

When IT procurement managers do business across a transnational border (or choose which borders to negotiate across) it will be helpful for managers to be aware of what restraints or pressures exist on both sides of the border that will affect the negotiated price of the product or service being acquired. The understanding that Garrettâs entire pricing theory depends on the macroeconomic (and hence also political) environment emerges from considering relations between contract pricing and economic theory, specifically, the âreservation priceâ and âeconomic calculation problemâ.

A fixed-price strategy in Garrettâs account does not mean a price that is fixed legally; it means a price that is determined by negotiation between free parties, such as is described in Ch. 8, pp. 105-106. That is, in Garrettâs pricing theory there is a transaction pricing calculation performed on each side of the transaction. Contract pricing is a decision, about which what matters is not the type of contract but the locus of the decision, that is, who makes the decision, and under what constraints?

Garrettâs Chapter 8 answers: buyer and seller make the decision. In a free-market economy, the pricing decision would be entirely an outcome of their negotiation. In an interventionist economy, the decision is in part an outcome of the buyer-seller negotiation; however, the cost of such interventions as taxes, regulations, currency instability, or contract impairment by monetary inflation, and any price caps or floors are built into or reflected by the sellerâs offering price.

In free market economic planning where there is zero central economic planning, a first approximation to a contract price that is freely set by buyer and seller is the reservation price or âwalk-awayâ price for the buyer. The seller, too, has a âwalk-awayâ price. The negotiation can only occur, resulting in a contract, in the interval between the two. Buyer and seller make a decision through a negotiation based on the sellerâs estimate of the cost of performance and the buyerâs estimate of what price the market, established by other potential sellers, would bear -- both estimates being a function of history.

According to the economic calculation problem described by the economist Ludwig Von Mises, a freely agreed upon price that reflects the combination of the buyerâs and sellerâs needs or desires is based on a calculation of the type that cannot be performed in a condition of central economic planning by a government. Under central economic planning, or socialism, price determination is not a function of trading history, or of the sellers' willingness to sell or the buyers' willingness to buy at a given price, rather it is either an arbitrary or politically-influenced decision. Such central economic planning, Von Mises observes, replaces economic calculation â the statistical aggregate of all individual actions by buyers and sellers who freely set prices by their own transaction pricing calculations.

Under the free market modeled in the theory of Von Mises, contract pricing relies on the absence of such market intervention so that buyer and seller are totally free to set a price that allows a contract to occur in the interval between the seller's and buyer's respective walkaway prices. This decision of both parties to agree on a price in that interval is one component of economic calculation â a component that applies to a single trade or transaction and contributes to the statistical aggregate which, in turn, tends to govern resource allocation so as to bring supply and demand into alignment.

To a lesser extent, contract pricing described by Garrett in Chapter 8 relies largely on the absence of central economic planning. Why? Because when the state intervenes it either substitutes its decision for that of the buyer and seller, or at a minimum imposes price controls that either foster shortages or surpluses or else tend to preclude the contract from ever happening if the controlled price is below the sellerâs cost estimate.

Under contract pricing as described by Garrett, the parties to the contract are still able to perform calculations of reservation (walkaway) prices and determine whether they can do the deal at some price in the interval that does not cause either to walk away. However, in a market that is only partially free, interventions such as regulations, taxes, currency exchange fluctuations, or monetary inflation that increase the sellerâs cost do alter the pricing calculation and tend to narrow the interval within which the buyer and seller can come to agreement. That still-intact possibility of agreeing on a price sensitive to market conditions is the essence of the relationship between the economic theory of Von Mises and the contract pricing theory of Garrett.

chocolateraven16

Comments on this, i need a paragrapgh on comments abaout this...

Abortion keeps being a controversy because both sides of the spectrum have valid points. The side that is prolife it right about abortion being the termination of an organism. Their believe system states that murdering human being is wrong and since an unborn child is still a human child, then by default this should be condemned as a wrong thing. They also say they are helping the woman themselves because abortion can have âthe risk of breast cancer in those who had experienced an induced abortion was 50% higher than among other womenâ however the same study states âthe results across all epidemiologic studies of this premise are inconsistentâboth overall and within specific subgroups. The risk of breast cancer should be re-examinedâ. This means we should not jump in to conclusion because more studies need to be done before accepting something as fact. The side for pro-choice states that a woman should have the choice to make her own decision no matter if it is a good or bad decision. A decision that will change her live completely and most of the time make it harder for a woman to get ahead in life.

I am pro-choice, not because I like terminating live, I am actually pro-live of any type of organisms not just humans, but because woman who phase this problem should have their reason or really are not prepare to have a baby in a modern society, and as Mack T Brown said âThe value of a self-represented future resides within the person herself, as a feature of a richly complex mental life". Both sides of the argument go to the extreme to explain their case pro-choice and give the example of a raped woman. Pro-live give the example of that a baby is always a good thing. Both acceptable, however most woman are not in this spectrums, an example that is more relevant is a woman who does not have the emotionally and or financial maturity to make the choice that is to have a child. Physically a girl is ready to have a child when her menstrual cycle begins that is usually around 13. Most people would agree that a girl of that age will not have any type of maturity to take care of even herself less a child. Letâs not go far letâs say a girl of eighteen years old getting out of high school, she may have a rare emotional maturity at that age to have the child but in todayâs society impossible without any help from family members to take care of that child. How many hours will she work? How will she take care of the child? How will she go to school to better herself for the future to come? These girls that are asking themselves if they should have an abortion is not because it is something they would like to do, it is a hard decision to postpone taking that live changing decision before they are ready to do it and not be a burden in society.

The current abortion law is strict, so abuse of the law will be very hard to do. In the third trimester a woman would need 2 signatures of two physicians to be able to do an abortion. I personally think that this is great this way we can assure that there is no negligence from any party. The part of the law I do not agree with is that the law says that if during the abortion the baby is born alive they need to offer emergency services. This defeats the purpose of an abortion that as harsh as it sounds it is to terminate the pregnancy cycle before time.

PR 605 Lecture Notes - Lecture 17: Bounded Rationality, Decision-Making

Document Summary

Get access

Related Documents

PR 605 Lecture 15: Rational decision making and intuition

PR 605 Lecture Notes - Lecture 16: Satisficing, Bounded Rationality

PR 605 Lecture Notes - Lecture 20: Hindsight Bias, Adrenal Gland, Bounded Rationality

Related Questions