9 Low-Effort Judgment Processes PDF

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Chapter 9 summary of low-effort judgement processes....

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9 Low-Effort Judgment Processes 

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Low-effort judgment processes o The representativeness heuristic—making a judgment by simply comparing a stimulus w the category prototype or exemplar o The availability heuristic—basing judgments on events that are easier to recall  Base-rate information—how often an event really occurs on average  Law of small numbers—expectation that info obtained from a small number of ppl represents the larger population Low-effort decision-making processes o Unconscious low-effort decision making  Environmental stimuli that ppl aren’t aware of the effect: shape, color, logos, places/social situations, presence of others o Conscious low-effort decision making  Thinkingfeelingbehaving = hierarchy of effects  Traditional hierarchy of effects—sequential steps used in decision making, involving thinking, feeling, then behaving  Doesn’t apply in all decision-making situations  Low-effort hierarchy of effects—sequence of thinking, behaving, feeling o Using simplifying strategies when consumer effort is low  Two of the factors that influence the low MAO decision process  Optimizing: finding best brand o Not necessarily the case in low effort decision making  Satisfice—finding a brand that satisfies a need even though the brand may not be the best brand  Choice tactics—simple rules of thumb used to make low-effort decisions  Price, affect, performance, normative, habit, brand-loyalty, variety-seeking Learning choice tactics o Operant conditioning—process of learning drive by the use of rewards to reinforce desired behavior and punishment to discourage objectionable behavior  Reinforcement  Feeling of satisfaction from met needs  Punishment  Bad experience that likely never results in a purchase after the first try  Repeat purchase  Consumers learn through reinforcement/punishment over time  Personal evaluation is important into future decisions  Choice tactics depend on the product  Tactics depend on which brands are available and our experiences w them o Advertising, price, and # of similar brands also affect choice Low-effort thought-based decision-making

9 Low-Effort Judgment Processes

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o Performance as a simplifying strategy  Performance-related tactics—tactics based on benefits, features, or evaluations of the brand o Habit as a simplifying strategy  Habit—learned behavior that involves regular performance of the same act repeatedly over time.  Performed unconsciously and may be difficult to overturn o Brand-loyalty as a simplifying strategy  Brand loyalty—buying the same brand repeatedly bc of a strong preference for it  Multibrand loyal—buying two or more brands repeatedly bc of strong preference for them o Price as a simplifying strategy  Price-related tactics—simplifying decision heuristics that are based on price  EX: Brand on sale, cheapest brand  Consumers don’t remember price info  Price perceptions  For prices to be perceived as different, variation must be at or above the just noticeable difference  Ppl have range of prices in their head for products  Consumers more responsive to price decreases than price increases  Deal-prone consumer—consumer who is more likely to be influenced by price o Normative influences as a simplifying strategy  Normative choice tactics—low-elaboration decision-making that is based on others’ opinions  Based on direct influence, vicarious observation, indirect influence Low-effort feeling-based decision-making o Feelings as a simplifying strategy  Affect—low-level feelings  Affect-related tactics—tactics based on feelings  Affect referral—simple type of affective tactic whereby we simply remember out feelings for the product/service o Brand familiarity—easy recognition of a well-known brand  Co-branding—an arrangement by which two brands form a partnership to benefit from the power of both  EX: Doritos Locos Tacos @ Taco Bell o Decision-making based on variety-seeking needs  Variety-seeking—trying something different  Sought b cos satiation and boredom  Not in every product category

9 Low-Effort Judgment Processes 

Mere categorization effect: company provides variety of categories to choose from to increase feelings of satisfaction w conscious decisions in low effort situations  Optimal stimulation level (OSL)—level of arousal that is most comfortable for an individual  Sensation seekers—consumer who actively looks for variety  Vicarious exploration—seeking info simply for stimulation  Impulse purchase—unexpected purchase based on a strong feeling o Buying impulse  Impulse purchase—unexpected purchase based on a strong feeling  Characterized by o Overwhelming feeling to having to buy product immediately o Disregard for potentially negative consequences o Feelings of euphoria and excitement o Conflict between control and indulgence...