1. Judgment and Decision Making Based on High Consumer Effort
Chapter 9
Judgment and Decision Making Based on High Consumer Effort

2. Learning Objectives Why are judgment and decision making important?
Types of cognitive models for high-effort decision making and influencing
Affective decisions in high-effort situations
Identify types of high-effort decisions made by consumers & how marketers can influence them

3. Chapter Overview: Judgment and Decision Making Based on High Consumer Effort (Exhibit 9.1)

4. High-Effort Judgment Processes
Estimation of likelihood
Goodness/badness
Anchoring/adjustment
Imagery
Conjunctive probability assessment
Illusory correlation

5. Biases in Judgment Processes
Confirmation
Self-positivity—prime
Negativity
Mood
Prior brand evaluations

6. High-Effort Consumer Decisions (Exhibit 9.3)
Deciding which brands to consider
Consideration set
Deciding what is important to the choice
Goals
Time
Framing

7. High-Effort Consumer Decisions (Exhibit 9.3, cont’d)
Deciding what offerings to choose
Thought-based decisions
Brands
Product attributes
Gains and losses
Feeling-based decisions
Appraisals and feelings
Affective forecasts

8. High-Effort Consumer Decisions (Exhibit 9.3, cont’d)
Deciding whether to make a decision now
Decision delay
Deciding when alternatives cannot be compared

9. High-Effort Decision Making Processes
Consideration set
Inept set
Inert set

10. High-Effort Thought-Based Decisions
Cognitive decision-making models
Types of decision processes
Compensatory versus noncompensatory
Brand versus attribute
Compensatory brand-processing models
Additive difference model

11. Types of Cognitive Choice Models (Exhibit 9.6)

12. Brand Processing Models
Compensatory Models
Multiattribute models (Theory of Reasoned Action [TORA])
Noncompensatory Models
Conjunctive model
Disjunctive model

13. High-Effort Thought-Based Decisions (cont’d)
Noncompensatory brand-processing models
Cutoff levels
Models
Conjunctive
Disjunctive
Noncompensatory attribute-processing models
Lexicographic
Elimination-by-aspects
Multiple models

14. 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.

15. Decisions Based on Gains & Losses
Prospect Theory
Losses have more influence than gains
Consumers have stronger reaction to price increases than price decreases
Endowment effect
Ownership increases value (and loss) associated with an item

16. High-Effort Feeling-Based Decisions
Affective decision making is that in which decisions are made in a more holistic manner on the basis of feelings or emotions.

17. Affective Decision-Making
Appraisal Theory
Affective Forecasting
Valence
Intensity
Duration
Imagery

18. Additional High-Effort Decisions
Decision delay
Decision too risky
Decision entails unpleasant task
Decision making when alternatives cannot be compared

19. Decision Making When Alternative Cannot Be Compared
Noncomparable Decisions
Strategy:
Alternative-Based
Attribute-Based

20. Contextual Effects on Consumer Decision Making
Consumer Characteristics
Task Characteristics
Task Definition/Framing
Presence of a Group

21. Consumer Characteristics Affecting Decision Making
Expertise
Mood
Time pressure
Extremeness aversion
Metacognitive experiences

22. Task Characteristics Affecting Decision Making
Information availability
Information format
Trivial attributes

23. Group Context of Decision Making
Individual-alone goals
Individual-group goals

24. Group Context and Decision Making
Self-Presentation
Minimizing Regret
Information Gathering

25. Goals Classes Affecting Decision Making (Exhibit 9.13)