Chapter 9 Summary

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Management (MGM)
Kyeongheui Kim

Ch9: Judgment and Decision Making Based on High Effort Decision-Making Processes Cognitively based, Affectively based Judgment Processes Likelihood Goodnessbadness Contextual Effects Consumer characteristics Decision characteristics Other people High-Effort Judgment Processes Judgmentsdecisions consumers make when MAO to process info relevant to the decision is high Judgments evaluations or estimates regarding the likelihood that productsservices possess certain features or will perform in a certain manner. Judgments do not require a decision Decision making making a selection among options or courses of action Estimations of likelihood judging how likely it is that something will occur (e.g. likelihood that a product will break down, will be liked by others upon purchase, or will satisfy our needs. Likelihood that an ad is truthful) Judgments of goodnessbadness evaluating the desirability of the offerings features, and is affected by product attributes as well as the intensity and direction of affective responses Anchoring and Adjustment starting with an initial evaluation and adjusting with additional information. This initial value can be info or an affective response available from memory; it can be attribute info from external environment encountered first; consumer values and normative influences are strong determinants of initial value Imagery (visualization) imagining an event in order to make a judgment o Plays major role in judgment of likelihood and goodnessbadness o Can make event seem more likely to occur since consumers form a positive bias o Consumers may overestimate how satisfied they will be with a product o May cause consumers to focus on vivid attributes & weigh them more heavily Biases in Judgment Processes: biases may compromise quality of consumers decision o Confirmation bias overweighting confirming info & underweighting contrary info in forming judgments can reduce consumers tendencies to search for more info, leading to less-than-optimal choices o Self-positivity bias believing that bad things are more likely to happen to other people than to themselves; might not process messages that suggest they might be vulnerable to risks > bad news for health- care or insurance marketers o Negativity bias giving negative info more weight than positive info when forming judgments, especially when forming opinions about something very important and an accurate judgment is necessary. But consumers dont engage in negativity bias when already committed to a brand. o Mood and bias: Mood can serve as initial anchor for a judgment (e.g. when shopping for a CD in a good mood, youll likely respond positively to any music you hear) Moods can reduce consumers search for and attention to negative info; consumers want to preserve their good mood by ignoring negative info Moods can make consumers overconfident about judgments they make o Prior brand evaluations: when the favourable brand name based on past exposure blocks new learning about quality-revealing product attributes that should affect consumers judgments Marketing Implications o Ensure the brand serves as a positive anchor by: Focusing consumers attention on those attributes that place the brand as best in its class > your brand becomes an anchor Trying to affect the set of other products that consumers use in their adjustment, in relation to the anchor The existing brand name in a brand extension or a products country of origin can serve as an anchor to influence subsequent judgment o Affect judgments of goodnessbadness by: Making consumers feel good (by manipulating their moods or priming consumers with positive feelings before giving them info) will lead them to evaluate the offering more positively Asking consumers to imagine the attributesbenefits of a product o Affect likelihood estimates. (e.g. consumers primed to consider family ties are more likely to take a financial risk because they realize family can help cushion a monetary loss. But less likely to take a social risk since negative outcome might affect their family)
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