Presentation on theme: "Judgment & Decision Making Based on High Consumer Effort"— Presentation transcript:
1 Judgment & Decision Making Based on High Consumer Effort Chapter 8Judgment & Decision Making Based on High Consumer Effort
2 Learning Objectives~ Ch. 8 To understand why judgment & decision making is important in consumer behaviorTo access types of cognitive models for high-effort decision making & influencingTo know the role of affective decisions in high-effort situationsTo identify types of high-effort decisions made by consumers & how marketers can influence them
3 Judgment & Decision Making: High Consumer Effort
4 High-Effort Judgment Processes Estimation of likelihoodGoodness/badnessAnchoring/adjustmentImageryConjunctive probability assessmentIllusory correlation
5 Biases in Judgment Processes ConfirmationSelf-positivity—primeNegativityMoodPrior brand evaluationsWhat past brand experiences have biased your judgment about future brand consumption?
6 High-Effort Consumer Decisions~1 Deciding which brands to considerThere is a vast menu of choices that you must break down to possible choicesConsideration set (evoke set)Deciding what is important to the choiceGoalsTimeFraming
7 High-Effort Consumer Decisions~2 Deciding what offerings to chooseThought-based decisionsBrandsProduct attributesGains & lossesFeeling-based decisionsAppraisals & feelingsAffective forecasts
8 High-Effort Consumer Decisions~3 Deciding whether to make a decision nowDecision delayDeciding when alternatives cannot be compared
9 High-Effort Decision Making Processes Consideration setInept setInert setWhat are the differences among these sets?
10 High-Effort Thought-Based Decisions Cognitive decision-making modelsTypes of decision processesCompensatory vs. noncompensatoryBrand vs. attributeCompensatory brand-processing modelsAdditive difference model
12 Brand Processing Models Compensatory ModelsMultiattribute models (Theory of Reasoned Action [TORA])Noncompensatory ModelsConjunctive modelDisjunctive modelWhat is the main difference between compensatory and noncompensatory models?
14 Noncompensatory Attribute Processing Models Elimination by AspectsAttributes ordered by importance; alternatives acceptable on first attribute proceed to evaluation on further attributesI will eliminate any brands with a value of 3 or below, beginning with most important attributeNote the “most important” attribute is up to the consumer (e.g., car safety, style, value/gas mileage, etc.)
15 Decisions Based on Gains & Losses Prospect TheoryLosses have more influence than gainsThink-have you ever spent more on gas to “save” on a price?Consumers have stronger reaction to price increases than price decreasesEndowment effectOwnership increases value (& loss) associated with an itemThis is why the 24 hour test drive of vehicles is often a success
16 High-Effort Feeling-Based Decisions Affective decision making:decisions are made in a more holistic manner on the basis of feelings or emotionsWhat is an example of an affective-based purchase that you have made?Was it a good purchase in retrospect? Why/not?
17 Affective Decision-Making Appraisal Theory: how your emotions are determined by the way you appraise the situation; explains how & why certain emotions can affect future judgments & choicesAffective Forecasting: you predict how you will feel in the futureValenceIntensityDurationImagery: you imagine yourself consuming a product or service; a key role in emotional decision making
18 Additional High-Effort Decisions Decision delayDecision too riskyDecision entails unpleasant taskDecision making when alternatives cannot be compared (noncomparable decisions)
19 Noncomparable Decisions Noncomparable Decisions: process of making decisions about products or services from different categories (e.g., weekend entertainment)Consumers use an alternative-based strategy OR an attribute-based strategy2 Main Consumer Strategies:Alternative-Based (top-down processing): overall evaluation, may use pros & consAttribute-Based (bottom-up processing): consumers form abstract representations to help them compare options
20 Contextual Effects on Consumer Decision Making Consumer CharacteristicsTask CharacteristicsTask Definition/FramingPresence of a Group
21 Consumer Characteristics Affecting Decision Making ExpertiseMoodTime pressureExtremeness aversionMetacognitive experiences
22 Task Characteristics Affecting Decision Making Information availabilityInformation formatTrivial attributes
23 Group Decision MakingHow does your consumer behavior/decisions change when you are alone vs. with: your friends? parents?Individual-alone goalsIndividual-group goals
24 Group Context & Decision Making Self-PresentationMinimizing RegretInformation Gathering
28 Automobiles: high effort consumer decision Courtesy Daimler AGAutomobiles: high effort consumer decisionSmart car has been touted as being environmentally friendly. This ad demonstrates another benefit of the Smart car: the goal of parking in a city.