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Chapter 10

Chapter 10 Summary

6 Pages
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Department
Management (MGM)
Course Code
MGMC02H3
Professor
Kyeongheui Kim

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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
Judgments/decisions consumers make when MAO is low. To simplify
judgment process:
Representative heuristic judging by simply comparing stimulus with
category prototype/exemplar. 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
oCreates bias because we tend to ignore base-rate information how
often the event rally occurs on average in favor of more
vivid/accessible info
oLaw of small numbers expectation that information obtained from a
small sample to be typical of the larger population
oMarketers 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 vivid/specific 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,
places/social situations, other people)
Conscious low-effort decision making
oLow-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)
oLow-effort purchases: most frequent type of decisions consumers make
daily
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oConsumers may ask a friend or someone else to make buying decision
oNegatively framed marketing message is more effective than positive
messages
oWilling to satisfice finding a brand that satisfies a need even though
the brand may not be the best brand (vs. optimize in high-elaboration
decisions)
oFor common, repeat-purchases, consumers develop choice tactics
simple rules of thumb used to make low-effort decisions. For example:
Price tactics its the cheapest or its on sale
Affect tactics I like it
Performance tactics it cleans clothes better
Normative tactics my mother bought it
Habit tactics buy the same brand I bought last time
Brand-loyalty tactics buy the brand I have a strong preference for
Variety-seeking tactics I need to try something different
How do consumers learn to apply Choice Tactics?
Operant conditioning view that behavior is a function of reinforcements and
punishments received in the past
Reinforcement feeling of satisfaction when our needs have been
adequately met; increases probability that we will purchase the same brand
again.
oE.g. past experience with a brand, experience during a product trial,
frequent-buyer rewards have powerful effects on evaluations
oReinforcement can occur for either the brand or the choice tactic
oIf consumer chose a brand by a particular price tactic (e.g. buy
cheapest), as long as brand minimally satisfies needs, the choice tactic
will be reinforced
Punishment when a brand doesnt meet our needs and we are dissatisfied,
we learn not to buy that brand again
oConsumers may reevalute the choice tactic and use a different tactic
next time
Choice tactics we use often depend on product category. The tactic we learn
for a product category depends on which brands are available and our
experiences with them. Amount of advertising, price variations, # and
similarity of brands also influence type of tactic we employ.
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Description
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 www.notesolution.com
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