Chapter 11 JUDGMENT AND DECISION MAKING: LOW CONSUMER EFFORT

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Chapter 11JUDGMENT AND DECISION MAKING LOW
CONSUMER EFFORT
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Chapter Overview

• Low vs. High Effort decision making
• Low effort judgement
• Low effort decision making processes
• Low effort cognitive decision making
• simplifying strategies
• Low effort emotional decision making

Why should I care about the brand of batteries I
buy? Theyre all the same!
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Low- vs. High-Effort Decision Making
Low Effort
High Effort
BELIEFS (think)
BELIEFS (think)
BEHAVIOR (do)
ATTITUDES (feel)
Learning
ATTITUDES (feel)
BEHAVIOR (do)
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Low Effort Judgement

• Heuristics commonly used
• simplified decision rule
• Representativeness Comparison to known
  alternatives
• Availability More accessible or vivid
  impressions are more impactful

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The Availability Heuristic

• Base-rate info may be ignored
• You get a lemon and stay away from that car
  manufacturer, whose general record of reliability
  is good
• Law of small numbers
• Experience of few people generalized to entire
  population

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Choice Simplification Strategies

• Satisficing decisions Good enough is good
  enough!
• Choice tactics, e.g.
• price
• affect
• performance
• normative
• recommendation (WOM or from salesperson)

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Learning of Choice Tactics

• Operant conditioning
• reinforcement
• good performance
• liked product
• social approval
• solved problem
• punishment
• poor performance
• caused problems

Repurchase
Not bad!
Change behavior
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Low-Effort Thought-Based Decision Making

• Simplifying Strategies
• Performance-related
• H
• Brand loyalty
• P
• Normative

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Individual Application Exercise

• Apply each of the simplifying strategies to the
  decision of where to buy gasoline for your car.
• Provide a specific, detailed statement to
  illustrate each choice tactic (i.e., I buy gas
  at Chevron because).
• Discuss with the class

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Low-Effort Feeling-Based Decision Making

• Feeling
• affect referral
• brand familiarity
• Variety-Seeking
• Impulse Buying

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Chapter 11 Review

• Low effort Judgement Processes
• heuristics
• Low effort Decision-Making Processes
• low effort vs. high effort
• operant conditioning
• Low effort cognitive decision making
• simplifying strategies (5)
• Low effort affective decision making
• Feelings, variety seeking impulse buys