Chapter 10 Summary

6 Pages
Unlock Document

Management (MGM)
Kyeongheui Kim

Decision-Making Processes Cognitively based Affectively based Judgment Processes Representative heuristic Availability heuristic Ch10: Judgment and Decision Making Based on Low Effort Low-Effort Judgment Processes Judgmentsdecisions consumers make when MAO is low. To simplify judgment process: Representative heuristic judging by simply comparing stimulus with category prototypeexemplar. Can bias consumers either positively (e.g. companies position offerings similar to the leading brand) or negatively (e.g. hamburger restaurants like McDonalds seen as offering no healthy food nor good quality salad) Availability heuristic basing judgments on events that are easier to recall o Creates bias because we tend to ignore base-rate information how often the event rally occurs on average in favor of more vividaccessible info o Law of small numbers expectation that information obtained from a small sample to be typical of the larger population o Marketers can capitalize on availability bias by providing positive & vivid product-related experiences through marcomm, ask consumers to imagine such situations, or stimulate positive word-of-mouth OR overcome the bias by providing vividspecific base-rate information Low-Effort Decsion-making Processes Unconscious low-effort decision making strongly affected by environmental stimuli (e.g. fragrance, music, displays, brand logos, placessocial situations, other people) Conscious low-effort decision making o Low-effort hierarchy of effects: thinking-behaving-feeling steps to make decisions (VS. thinking-feeling-behaving for traditional hierarchy of effects) Sometimes it can be feeling-behaving-thinking if a decision is solely based on feeling rather than thoughts Using simplifying strategies when consumer effort is low (low MAO) o Low-effort purchases: most frequent type of decisions consumers make daily
More Less

Related notes for MGMC02H3

Log In


Join OneClass

Access over 10 million pages of study
documents for 1.3 million courses.

Sign up

Join to view


By registering, I agree to the Terms and Privacy Policies
Already have an account?
Just a few more details

So we can recommend you notes for your school.

Reset Password

Please enter below the email address you registered with and we will send you a link to reset your password.

Add your courses

Get notes from the top students in your class.