1. Chapter 11 JUDGMENT AND DECISION MAKING: LOW CONSUMER EFFORT

2. 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!”

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

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

5. 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

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

7. 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

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

9. 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

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

11. 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