Presentation on theme: "Chapter 8 Judgment & Decision Making Based on High Consumer Effort."— Presentation transcript:
Chapter 8 Judgment & Decision Making Based on High Consumer Effort
Learning Objectives~ Ch. 8 1.To understand why judgment & decision making is important in consumer behavior 2.To access types of cognitive models for high-effort decision making & influencing 3.To know the role of affective decisions in high-effort situations 4.To identify types of high-effort decisions made by consumers & how marketers can influence them
Judgment & Decision Making: High Consumer Effort
High-Effort Judgment Processes Estimation of likelihood Goodness/badness –Anchoring/adjustment –Imagery Conjunctive probability assessment Illusory correlation
Biases in Judgment Processes Confirmation Self-positivityprime Negativity Mood Prior brand evaluations What past brand experiences have biased your judgment about future brand consumption?
High-Effort Consumer Decisions~1 Deciding which brands to consider –There is a vast menu of choices that you must break down to possible choices –Consideration set (evoke set) Deciding what is important to the choice –Goals –Time –Framing
High-Effort Consumer Decisions~3 Deciding whether to make a decision now –Decision delay Deciding when alternatives cannot be compared
High-Effort Decision Making Processes Consideration set Inept set Inert set What are the differences among these sets?
High-Effort Thought-Based Decisions Cognitive decision-making models Types of decision processes Compensatory vs. noncompensatory Brand vs. attribute Compensatory brand-processing models Additive difference model
Cognitive Choice Models
Brand Processing Models Compensatory Models –Multiattribute models (Theory of Reasoned Action [TORA]) Noncompensatory Models –Conjunctive model –Disjunctive model –What is the main difference between compensatory and noncompensatory models?
Noncompensatory Attribute Processing Models Elimination by Aspects –Attributes ordered by importance; alternatives acceptable on first attribute proceed to evaluation on further attributes –I will eliminate any brands with a value of 3 or below, beginning with most important attribute –Note the most important attribute is up to the consumer (e.g., car safety, style, value/gas mileage, etc.)
Decisions Based on Gains & Losses Prospect Theory –Losses have more influence than gains –Think-have you ever spent more on gas to save on a price? –Consumers have stronger reaction to price increases than price decreases Endowment effect –Ownership increases value (& loss) associated with an item –This is why the 24 hour test drive of vehicles is often a success
High-Effort Feeling-Based Decisions Affective decision making: decisions are made in a more holistic manner on the basis of feelings or emotions What is an example of an affective-based purchase that you have made? Was it a good purchase in retrospect? Why/not?
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 & choices Affective Forecasting: you predict how you will feel in the future –Valence –Intensity –Duration Imagery: you imagine yourself consuming a product or service; a key role in emotional decision making
Additional High-Effort Decisions 1.Decision delay –Decision too risky –Decision entails unpleasant task 2.Decision making when alternatives cannot be compared (noncomparable decisions)
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 strategy 2 Main Consumer Strategies: –Alternative-Based (top-down processing): overall evaluation, may use pros & cons –Attribute-Based (bottom-up processing): consumers form abstract representations to help them compare options
Contextual Effects on Consumer Decision Making Consumer Characteristics Task Characteristics Task Definition/Framing Presence of a Group
Consumer Characteristics Affecting Decision Making Expertise Mood Time pressure Extremeness aversion Metacognitive experiences
Task Characteristics Affecting Decision Making Information availability Information format Trivial attributes
Group Decision Making How does your consumer behavior/decisions change when you are alone vs. with: your friends? parents? Individual-alone goals Individual-group goals
Group Context & Decision Making Self-Presentation Minimizing Regret Information Gathering
Automobiles: high effort consumer decision Smart car has been touted as being environmentally friendly. This ad demonstrates another benefit of the Smart car: the goal of parking in a city. Courtesy Daimler AG