cbchapter 10
TRANSCRIPT
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Chapter 10
JUDGMENT AND DECISION MAKING:
HIGH CONSUMER EFFORT
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A General Model of Consumer Problem Solving
Problem Recognition
Search for Information
Evaluation of Alternatives
Choice Decision
Purchase
Postpurchase Use and Reevaluation
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Chapter Overview Judgment Thought-based (cognitive)
decision making» Four types of decision processes
Feeling-based (affective) decision making
Decisions when comparison of alternatives is difficult
How context impacts decisions» Framing
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Judgments vs. Decisions
Judgments
Decisions
Evaluations; actualchoice between alternatives not made
Choice betweenalternatives; basedin part on judgments
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Decision-Making Issues
“Rational” decision criteria» decisions well
thought out; alternatives compared
» cost vs. benefit Emotional bases
» how does each option make you feel?
One credit card offers alow interest rate, but another has an extended warranty.
The American Express card make me feel successful!
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Cognitive Decision Making (High Effort)
Compensatory vs. non-compensatory models
Brand vs. attribute-based processing
“I got an F inCalculus. Who cares--I got an A in intro to golf!”
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Types of Decision Models
Processing by Brand
Processingby Attribute
Compensatory Noncompensatory
Multi-attribute(e.g. TORA)
ConjunctiveDisjunctive
Additive Difference LexicographicElimination by aspects
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Compensatory/Attribute Processing Models
Additive Difference Models» brands compared by attribute, two at a time» differences added up as decision maker
proceeds by attribute; e.g.: Brand A Brand B
Difference
Attribute 1 3 4 -1
Attribute 2 4 2 2
Attribute 3 6 4 2
----------------------------------------------------
TOTAL (A vs. B) +3
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Noncompensatory Brand Processing Models
Conjunctive models » acceptability cutoffs (minimums) set for
each attribute» “AND” rule
Disjunctive model » set high standards for attributes» “OR” rule
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Noncompensatory Attribute Processing
Models
Lexicographic Model» Attributes ordered by
importance
» Stop when one choice dominates
Elimination by aspects» Attributes ordered by
importance» Stop when only one option
remains
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Reality of Consumer Decision Making
Consumers may use multiple decision-making strategies
ALL ALTERNATIVES
SURVIVINGALTERNATIVES
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Group Application Exercise: Cognitive Decision Making
Get into groups of 3-5. You will be assigned ONE of the 3 decision making approaches shown below. (1)Noncompensatory/Processing by brand(2)Noncompensatory/Processing by attribute(3)Compensatory/Processing by attribute
Write a scenario showing how your cognitive decision making approach could be applied to deciding what college to attend.
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Marketing Implications
Product D Product P Cut-off Levels for Product Design Rank order of Attributes Encourage Switching between
decision models
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High-Effort Feeling-Based Decisions
Common for offerings with hedonic, symbolic, or aesthetic attributes
Is frequently combined with cognitive processing
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Deciding Between Non-Comparable Alternatives
Alternative- based strategy» overall evaluation of
each option
Attribute-based strategy» abstract evaluation of
alternatives for each option
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Decision-Making Context
Consumer characteristics» motivation to
process» ability to process» opportunity to
process
Task characteristics» consideration set» availability of info
Framing» by the consumer» external framing
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Chapter 10 Review
Judgement Rational Decision Making
» Compensatory vs. Noncompensatory» Processing by Brand vs. Processing by
Attribute Affective Decision Making Deciding When Alternatives Can’t Easily
be Compared Influence of Context on Decision Making