Decision Making Basics
What type of decision making is behavioral, unconscious, and automatic?
Choices: cognitive, habitual, affective
habitual
Which step in decision making does this describe? the process by which we survey the
environment for appropriate data to make a reasonable decision
Choices: problem recognition, information search, evaluate alternatives, product choice, post purchase evaluation
information search
There are 2 basic types of compensatory rules: the ____ additive rule states that the consumer takes into account the relative importance of the attributes by weighting each one (ex: Fishbein model)
Weighted
___ are mental shortcuts that allows people to solve problems and make judgments quickly and efficiently
Heuristics
____ refers to the belief that products
from other places are inferior to local versions
ethnocentrism
According to this view, people integrate as much information as possible with what they already know about a product, weigh the pluses and minuses of each alternative, and arrive at a satisfactory decision.
Choices: rational perspective, emotional perspective, cognitive perspective, SANSKAR
SANSKAR
jk, it's rational perspective
The alternatives that a consumer seriously considers are known as the _____ set
consideration
There are 2 basic types of compensatory rules: the ____ additive rule states that the consumer chooses the option that has the largest number of positive attributes
simple
With the cognitive decision strategies previously described consumers want to arrive
at the best result possible—a ___ solution
maximizing
Loss ___ is the idea that people hate losing things
more than they enjoy getting things
What's the first step in decision making?
Choices: information search, product choice, evaluation of alternatives, problem recognition
problem recognition
Which step in decision making does this describe? When we experience a significant
difference between our current situation and some state we desire
Choices: problem recognition, information search, evaluate alternatives, product choice, post purchase evaluation
problem recognition
The ______ rule is similar to the lexicographic rule
because the buyer evaluates brands on the most important attribute. In this
case, though, s/he imposes specific cut-offs
elimination-by-aspects
Why does a person buy the same brand over and over? In some cases, the explanation is ___, which means that it involves less effort to pick a familiar brand
inertia
A ___ cost is any expenditure we’ve already made that
we’re unable to get back – the cost can be financial,
emotional, or time-related
sunk
In the process called social ____, both customers and service providers increasingly rate one another’s performance
scoring
Which step in decision making does this describe? It occurs when we experience the product or service we selected and decide whether it meets our expectations
Choices: problem recognition, information search, evaluate alternatives, product choice, post purchase evaluation
post purchase evaluation
The ___ rule entails processing by brand. As with the elimination-by-aspects procedure, the decision maker establishes cut-offs for each attribute. However, here s/he chooses a brand if it meets all the cutoffs but rejects a brand that fails to meet any one cut-off.
conjunctive
The ___ heuristic suggests that things that come to mind more easily are believed to be far more common than what they are
availability
The ___ Effect states that objects that are priced in the middle of choice sets are looked on more favorably
Compromise
The alternatives a consumer knows about are called the ___ set
evoked
Feature ___ occurs when products become too overly complex with myriad features the typical consumer cannot or has difficulty understanding
creep
With the ___ rule, the consumer selects the brand that is the best on the most important attribute
lexicographic
The association among attributes that may or may not actually influence one another is known as ___
covariation
____ Theory suggests that adaptive designs of the decision environment (choice architecture) as ways to influence the behavior and decision-making of
groups or individuals
Nudge