MRKT 452- Midterm Exam Guide - Comprehensive Notes for the exam ( 28 pages long!)
5 Oct 2017
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Video lecture #2 biases, judgements, decisions part i. Advertising, store design, pricing, branding, online reviews. Judgement bias: gap between rational and actual judgement. Judgement heuristics: availability vivid (easily recalled) info is more important than less vivid info for risk/probability judgements. Ex. thousands of riders shunned buses following the death of rider. An availability heuristic is a mental shortcut that relies on immediate examples that come to mind. When you are trying to make a decision, a number of related events or situations might immediately spring to the forefront of your thoughts. Credit card: difficult to visualize loss, more spending. Easily remembered info has a ring of truth. (cid:862)depe(cid:374)da(cid:271)le(cid:863) asso(cid:272)iatio(cid:374) ex. store brand is assumed to be dependable. Blue packaging = fresh, green packaging = natural. Opponent emphasizes losing guns, proponents emphasize gaining safety. Opponent emphasizes raising taxes, proponents emphasizes cleaner environment. Heuristics summary what comes to mind quickly (availability) Ex. population estimates, price discounts, life satisfaction.
