1. Chapter 10 JUDGMENT AND DECISION MAKING: HIGH CONSUMER EFFORT

2. A General Model of Consumer Problem Solving
Problem Recognition
Search for Information
Evaluation of
Alternatives
Choice Decision
Purchase
Postpurchase Use and
Reevaluation

3. 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

4. Judgments vs. Decisions
Evaluations; actual
choice between
alternatives not made
Judgments
Choice between
alternatives; based
in part on judgments
Decisions

5. 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 a
low interest rate, but another has an extended warranty.
The American Express card make me feel successful!

6. Cognitive Decision Making (High Effort)
Compensatory vs. non-compensatory models
Brand vs. attribute-based processing
“I got an F in
Calculus. Who
cares--I got an A in
intro to golf!”

7. Types of Decision Models
Compensatory Noncompensatory
Processing
by Brand
by Attribute
Multi-attribute
(e.g. TORA)
Conjunctive
Disjunctive
Additive Difference
Lexicographic
Elimination by aspects

8. 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
Attribute
Attribute
TOTAL (A vs. B)

9. Noncompensatory Brand Processing Models
Conjunctive models
acceptability cutoffs (minimums) set for each attribute
“AND” rule
Disjunctive model
set high standards for attributes
“OR” rule

10. Noncompensatory Attribute Processing Models
Lexicographic Model
Attributes ordered by importance
Stop when one choice dominates
Elimination by aspects
Stop when only one option remains

11. Reality of Consumer Decision Making
Consumers may use multiple decision-making strategies
ALL
ALTERNATIVES
SURVIVING

12. Group Application Exercise: Cognitive Decision Making
Get into groups of 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.

13. Marketing Implications
Product D
Product P
Cut-off Levels for Product Design
Rank order of Attributes
Encourage Switching between decision models

14. High-Effort Feeling-Based Decisions
Common for offerings with hedonic, symbolic, or aesthetic attributes
Is frequently combined with cognitive processing

15. Deciding Between Non-Comparable Alternatives
Alternative- based strategy
overall evaluation of each option
Attribute-based strategy
abstract evaluation of alternatives for each option

16. 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

17. 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