Chapter 10

JUDGMENT AND DECISION MAKING: HIGH CONSUMER EFFORT

A General Model of Consumer Problem Solving

Problem Recognition

Search for Information Evaluation of Alternatives

Choice Decision

Purchase Postpurchase Use and Reevaluation

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

Judgments vs. Decisions

Judgments Evaluations; actual choice between alternatives not made

Decisions

Choice between alternatives; based in part on judgments

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!

Cognitive Decision Making (High Effort)



Compensatory vs. noncompensatory models Brand vs. attribute-based processing

I got an F in Calculus. Who cares--I got an A in intro to golf!
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Types of Decision Models

Compensatory Processing by Brand Multi-attribute (e.g. TORA) Additive Difference Noncompensatory Conjunctive Disjunctive Lexicographic Elimination by aspects

Processing by Attribute

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.:
Attribute 1 Attribute 2 Attribute 3 Brand A Brand B Difference 3 4 -1 4 2 2 6 4 2 ---------------------------------------------------TOTAL (A vs. B) +3

Noncompensatory Brand Processing Models



Conjunctive models
acceptability cutoffs (minimums) set for each attribute AND rule

Disjunctive model
set high standards for attributes OR rule

Noncompensatory Attribute Processing Models



Lexicographic Model
Attributes ordered by importance

Stop when one choice dominates



Elimination by aspects
Attributes ordered by importance Stop when only one option remains
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Reality of Consumer Decision Making



Consumers may use multiple decision-making strategies

ALL ALTERNATIVES

SURVIVING ALTERNATIVES

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Group Application Exercise: Cognitive Decision Making



Get into groups of 3-5. 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.
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Marketing Implications
Product D  Product P  Cut-off Levels for Product Design  Rank order of Attributes  Encourage Switching between decision models


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High-Effort Feeling-Based Decisions



Common for offerings with hedonic, symbolic, or aesthetic attributes Is frequently combined with cognitive processing

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Deciding Between NonComparable Alternatives



Alternative- based strategy

overall evaluation of each option

Attribute-based strategy
abstract evaluation of alternatives for each option

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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

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Chapter 10 Review
Judgement  Rational Decision Making


Compensatory vs. Noncompensatory Processing by Brand vs. Processing by Attribute

Affective Decision Making  Deciding When Alternatives Cant Easily be Compared  Influence of Context on Decision Making


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