Chapter 11 JUDGMENT AND DECISION MAKING: LOW CONSUMER EFFORT

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? They’re all the same!”

Low- vs. High-Effort Decision Making Low Effort High Effort BELIEFS (think) BELIEFS (think) ATTITUDES (feel) BEHAVIOR (do) Learning ATTITUDES (feel) BEHAVIOR (do)

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

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

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

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

Low-Effort Thought-Based Decision Making Simplifying Strategies Performance-related H Brand loyalty P Normative

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

Low-Effort Feeling-Based Decision Making affect referral brand familiarity Variety-Seeking Impulse Buying

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