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Judgement and decision making (High effort decision making process…
Judgement and decision making
Judgement = evaluations or estimates regarding the likelihood that offerings possess certain features or will perform in a certain manner. serve as important inputs to decision making, but judgement itself does not need a decision
High effort judgement
Judgement of goodness/badness
same as above
Mental and emotional accounting
Mental = categorising spending and saving decisions into 'accounts' mentally designated for specific consumption goals
Emotional = the intensity of positive or negative feelings associated with each mental 'account' for spending or saving
Estimation of likelihood
Imagery = multi-sensory mental representation of a stimulus
Anchoring and adjustment process = initial evaluation followed by an adjustment with additional information
Biases
Negativity
Mood
Self-positivity
Prior brand evaluations
Confirmation
Prior experience
Difficulty of mental calculations
High effort decision making process
What's important to the choice: goals, time, framing
Thought based decisions
Compensatory model = mental cost-benefit analysis where negative features can be compensated by positive ones
Multi-attribute model = brand based
Addictive difference = compared by attribute, two brands at a time
Non compensatory model = negative information leads to rejection of the option. Use cut off level for each attribute
Conjunctive = sets minimum cut offs to reject bad options, Disjunctive = sets acceptable cut offs to find good options
Brand based
Lexicographic = compares brands by attitudes, one at a time, in order of importance. Eliminations by aspects = adds notion of acceptable cut offs
Brands to consider: inept set (unacceptable), inert set (indifferent), consideration set. Attraction effect = addition of an inferior brand to consideration set increases the attractiveness of the dominant brand making the decision easier
Feeling based decisions = made because the choice feels right, often experience based, brands can be associated with emotions
Affective forecasts = a prediction of how you will feel in the future consumption situation including how intense the feeling and how long it will last
Imagery = imagined consumption triggers emotions that can be used as an input to make decisions
Appraisals and feelings = evaluation of a situation can trigger emotions which can influence future judgements and decisions
Whether to make decision now: decision delay because it's too risky, involves unpleasant task, too many alternatives that are difficult to compare, uncertain to get information
When alternatives cannot be compared
Alternative based strategy (top down) = create an evaluation of each option and base the final decision on it
Attribute based strategy (bottom up) = creating abstract representations of comparable attributes
Factors affecting decisions
Characteristics of the decision: information availability, information format, trivial attributes
Group context: individual-group goals vs individual-alone goals
Consumer characteristics: expertise, mood, time pressure, extremeness aversion, metacognitive experience
Low effort judgement
Representative heuristic = making a judgement by simply comparing a stimulus with the category prototype or exemplar
Availability heuristic = making a judgement on events that are easier to recall. Prone to bias: ignoring base rate information and the law of small numbers
Low effort decision making processes
Conscious = hierarchy of effects and affective processing - sequence of thinking, behaving and feeling
Unconscious = affected by visual aspects and influenced by environmental stimuli. Automatic goal-related behaviours
Characteristics: more willing to satisfice (finding a brand that satisfies a need even though the brand may not be the best), engaged in choice tactics
Operant conditioning = use of reward to reinforce desired behaviour and punishment to discourage objectionable behaviour
Thought based decisions
Brand loyalty
Resulting from positive reinforment of performance related choice tactic
Price
Zone of acceptance, price techniques
Habit
Repeat behaviour over time, little or no information seeking or evaluation of alternatives
Normative influences
Direct influence = others try to manipulate us. Indirect influence = we are concerned about opinions of others. Vicarious observation = we observe others to guide our behaviours
Performance
Tactics based on benefits, features or evaluations of brand
Feeling based decisions
Brand familiarity
Co branding = two brands form a partnership to benefit from the power of both
Variety seeking needs
Arousal level falls below optimal stimulation level. Not expressed in every product category
Feelings
Affect referral = people remember feelings for the offering
Impulse purchase
Based on strong feeling to buy product, disregard for negative purchase consequences, feelings of euphoria and excitement, conflict between control and indulgence