Models & Strategies
Name the 3 models of consumer decision-making.
Utility Theory, Satisficing Theory, and Prospect Theory
Name the 2 Point-of-Purchase Decisions
Multiple Unit Pricing and Suggestive Selling
Outline the difference between System 1 and System 2 thinking.
System 1 - fast and unconscious
System 2 - slower and takes more effort
What is the definition of choice blindness?
Term coined by Hall & Johansson in 2005 - says people are unaware of the decisions they make and our brains go along with a choice, even if it wasn't ours
What type of study is Hall et al. (2010)?
Field experiment
What does prospect theory say about how people will make consumer decisions?
People will make less risky decisions and will take a small, but certain item, rather than a big, but uncertain item
Which system of thinking are both heuristics and point-of-purchase decisions?
System 1 (they are quick decisions)
How does Shleifer (2012) suggest we can help people make healthier, system 2 decisions?
We can target their System 2 thinking with campaigns that appeal to System 1 thinking
Outline two features of the sample by Hall et al. (2010)?
180 shoppers, from Sweden, 118 female/62 male, aged 16-80
What were the participants told they were doing in Hall et al. (2010)?
A tea/jam quality assessments
What is the difference between compensatory and partially compensatory strategies?
Compensatory means you are making a rational choice from ALL of your options. Partially compensatory means you are making a rational choice from 2 options, then taking the winner and comparing it to the next option.
Name the 5 heuristics and define ONE of them.
Anchoring, representative, recognition, take-the-best, availability.
Name a product that YOU have proactive interference for... meaning you don't consider new brands since you have memories of old ones
Phone brands makes sense, but could say anything
Outline 2 hypotheses of Hall et al. (2010)?
People would NOT show choice blindness when:
1. The pairs of products were dissimilar in smell/taste to each other
2. The participants indicated that they liked one product significantly more than the other
3. They were offered an incentive for their participation in the study, such as a free gift to take home.
What is the difference between Availability and Recognition Heuristic?
Availability - the first thing that pops into your mind
Recognition - the thing you recognize most
Which model of consumer decision-making is most idiographic? (meaning it will be specific to one person)
Satisficing because it means you are making a decision based on personal circumstances
Give a tiny procedure and results of Wansink et al. (1998) on point-or-purchase decisions.
2 field experiments where they asked questionnaires in a store while people shopped. 2 lab experiments where they had people shop online and describe why they were making certain decisions.
Found that point-of-purchase decisions (external anchors) can increase consumer spending, only if they do not have internal anchors (like budget, time they can spend, etc.)
What is the difference between Explicit and Implicit Memory?
Explicit - info we are conscious of
Implicit - info we are NOT conscious of
Outline 2 results of Hall et al. (2010)
The majority of shoppers failed to detect the mismatch (only 33% in jams and 32.2% in teas)
Detection was less common in those who were offered a free gift than those who were not - in the tea condition
No difference in confidence or ability to tell the difference between the 2 samples in the experimental vs. control groups
Outline the difference between "individual" and "situational" factors.
Individual - Something about the person makes them behave a certain way in every situation.
Situational - Something in the environment makes a person behave that way
What is a short procedure and a result of Jedetski et al. (2002) on strategies of consumer decision-making?
24 people asked to buy 4 items from either of these websites: CompareNet (had a lot of filters and comparisons) or Jango (did not have filters). Type of strategy used was observed and participants answered Likert-type questions about the ease of use.
Found that is comparison was easy (through filters), participants used compensatory
Satisficing Theory
Is implicit memory linked to System 1 or System 2 thinking?
System 1
Outline 3 strengths and 3 weaknesses of Hall et al. (2010). Don't need to explain at all, just say 3 Ss and 3 Ws.
Ecological Validity, deterministic, internal validity (lack of demand characteristics)
Weaknesses - internal validity/reliability (lack of standardization), generalizability, ethics, cultural differences
If you have a "Describe" question about 2 vocab terms, how would you get your 6 points?
Define with a lot of details (essentially word vomiting info) about the 2 words and describe details about a helper study
Compensatory & Partially Compensatory are Utility
Non-compensatory is Satisficing.
Prospect does not have one.
Outline the procedure and results of Del Campo et al. (2016) on choice heuristics.
Lab experiment in Austria and Spain. Participants were randomly allocated to either time-pressured condition or non-pressured condition and had to choose between 5 brands of eggs. After their choice, they had to explain why they made that decision, then took a questionnaire on decision-making.
Time pressure increased use of Take-The-Best in Austria, but not Spain. Found a correlation between spontaneous decision making and recognition heuristic - only in Austria. Shows that choice heuristics are both individual and situational.
What is the difference between retroactive and proactive interference?
Retroactive - forgetting a previously remembered event/skill because you've learned a new one
Proactive - can't learn new event/skill because your memory of your old one is so strong
Concurrent - noticed immediately after tasting/smelling the manipulated sample
Retrospective - said they noticed it, only during debriefing
Sensory-Change - said they noticed something was unusual, but did not say exactly what the problem was
Name the similar pairs of both teas and jams?
Apple pie & Honey - teas