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Management (MGM)
Bill Mc Conkey

Judgment and Decision Making Based on High Effort High-Effort Judgment Processes Judgments: Evaluations of an object or estimates of likelihood of an outcome or event Evaluations or estimates regarding the likelihood that products do not require decision Decision making: Making a selection among options of courses of action Judgments do not require a decision Judgments of Likelihood and Goodness/badness Estimation of likelihood: Judging how likely it is that something will occur. Ex: Estimate if product will break down Judgments of goodness/badness: evaluating the desirability of the offering features Combine judgment about product attributes, and actions associate with product to for attitude or evaluation Anchoring and Adjustment Anchoring and adjustment process: Starting with an initial evaluation and adjusting it with additional information Imagery: imagining an event in order to make a judgment Visualizing an event increases likelihood of event because form positive bias when imagining oneself using product Imagery lead to overestimation on satisfaction with product/service Biases in Judgment Processes Factors affecting quality of consumer decisions and consumer judgment in a variety of ways: Confirmation bias: Self positivity bias Negativity bias: Mood and bias: Prior brand evaluations HIGH-EFFORT DECISION AND HIGH-EFFORT DECISION-MAKING PROCESS Deciding which brands to consider o Consideration set Deciding what is important to the choice o Goals o Time o Framing Deciding what offerings to choose o Thought-based decisions Brands Product attributes Gains and losses o Feeling-based decisions Appraisals and feelings Affective forecasts Deciding whether to make a decision now o Decision delay Deciding when alternatives cannot be compared When consumers MAO to process information to a decision are high, consumers put a lot of effort in decision Deciding which Brands to Consider Consumers decide which brands falls under the above categories (inept, inert, consideration) Inept set: options that are unacceptable when making a decision Inert set: options toward which consumers are indifferent consideration set: the subset if top-of-mind brands evaluated when making a choice Consideration set is important for marketers because it affects what brands the consumers are choosing among and hence whom the marketer is competing against evaluation of a brand in the consideration set depends on the others brands to which are compared: if a brand is more attractive/dominant, making a choice is easy changing alternatives of consideration set impacts on consumers decision, even without a change in preferences o ex: brand looks even better when an inferior brand is addend to the consideration set Attraction effect: when adding of an inferior brand to a consideration set increases the attractiveness of the dominant brand Deciding Which Criteria Are Important to the Choice Consumers need to determine which criteria are relevant to the decision and how important each criterion is to their decision, before choosing a specific offering from the consideration set relevance depends on consumers goals, timing of their decision, how the decision is framed or represented Goals goal: to make a decision, consumers may judge products with unique, positive attributes and shared negative attributes as more favorable than products with unique, negative attributes that share positive attributes Goal: flexibility in choice, consumer will seek out a large assortment of choices goal: simplify the choice, consumers will seek out a small assortment goal: influence others, use different criteria when choosing among brands than those used by consumers who do not have this goal goals may change during decision process, whether it be promotion-focused consumers or prevention focused o promotion-focused consumers: maximize gains and positive outcomes o prevention-focused consumers: risk adverse, emphasize efficacy rather than own skills/capacity Time we use high-level(abstract) or low-level(concrete) construal depending on our decision about what to buy/ do right now or about something we might buy/do in the future low-level construals when decisions is something immediate o ex: restaurant to eat right now, concrete elements: distance from home, cost, people attending high level construals when decision we anticipate to make later: criteria is more general and abstract o ex: which restaurant will create the best dining experience decisions outcome will be realized far in the future, consumers may consider hedonic aspects of a decision(how good it will make me feel) to be: more important than the more rational aspects of the decision( can i afford it) Framing decision framing: the initial reference point of anchor on the decision process frames serve as initial anchor in the decision process, so all subsequent info is considered in light of this frame ex: Frame f
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