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Chapter 9
Judgment & Decision Making Based on Low Consumer Effort
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Learning Objectives~ Ch. 9
To understand:
1.Heuristics & simple judgment
2.Conscious & unconscious decisions
3.Hierarchy of effects, decision heuristics, & operant conditioning
4.Thought-based strategies of performance tactics, habit, brand loyalty, price-related tactics, & normative influences
5.Feeling-based strategies of affective tactics, variety seeking, & impulse purchasing
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Judgment & Decision Making: Low Consumer Effort
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Shortcuts in Making Low-Effort Judgments
A heuristic is a “rule of thumb” to simplify things
A. Representativeness Heuristic: Comparing a
stimulus with the category prototype/exemplar
B. Availability Heuristics: Basing judgments on
events that are easier to recall
– Base-Rate Information
– Law of Small Numbers
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Unconscious Low-Effort Decision Making
You may make a decision without being consciously aware of how or why you are doing so. Example?
Use of all senses
Environmental stimuli
Automatic goal-relevant behavior
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Conscious Low-Effort Decision Making
Low-Effort vs. High-Effort Decision Making
Hierarchy of Effects
– Thinking > Feeling > Behaving
– Passive/Incidental Learning
– Post-Purchase
– Thinking > Behaving > Feeling
Simplifying Strategies
– Optimizing
– Satisfice
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Hierarchy of Effects
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Consumer Learning
Process
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How Consumers Learn to Apply Choice Tactics
Choice tactic: simple rule of thumb consumers use to make low-effort decisions
Consumers may learn choice tactics via: Operant Conditioning: behavior is ƒ(previous actions & reinforcements or punishments obtained from these actions)
– Reinforcement
– Punishment
– Repeat Purchase
Choice = Product Dependent
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Simplifying Strategies in Low Elaboration Contexts
Recall, in low effort contexts (e.g., beverage) consumers apply different choice tactics than in high effort contexts (e.g., new car)
Simplifying Strategies: When MAO is low, consumers are motivated to simplify the cognitive process with heuristics
How a message is framed influences how consumers react
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Choice Tactics
1. Performance-related
2. Habit
3. Brand Loyalty
4. Price
5. Normative influences
6. Feelings/affect
7. Variety Seeking
(note, you may recognize these in the left box of the consumer-learning process figure shown prior)
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1. Performance as a Simplifying Strategy
Performance-Related Tactics: when the outcome of the consumption process is positive reinforcement
Can be an overall evaluation of performance, or focused on a specific attribute or benefit
– Quality– Important features/benefits– Sales promotions
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2. Habitas a Simplifying Strategy
Having a habit (e.g., in the grocery store) is a simplifying strategy
Habits can make life simpler & or more manageable
Habit—Repeat Purchase, Shaping– Little/no information sought– Little/no evaluation of alternatives– Promotion/distribution policies
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3. Brand Loyalty as a Simplifying Strategy
Brand/Multibrand Loyalty– Purchase pattern + commitment to brand– Cognitive lock-in– Resistant to competitive efforts– Quality/Satisfaction
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4. Price as a Simplifying Strategy
Marketer Side Price Considerations:
-Coupons-Price-offs-Rebates-Two-for-ones
-Savings must be:at or above the just noticeable difference& within zone of acceptance-Special pricing must not be used too often or risk of dilution
Consumer Side Price Considerations:
-Zone of Acceptance
-Price Perceptions
-Deal-Prone Consumers
-Price consciousness is not static
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5. Normative Influencesas a Simplifying Strategy
Others can influence consumers’ low-elaboration decision making
Normative Influences– Direct– Vicarious– Indirect
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6. Feelings/Affectas a Simplifying Strategy
Affect: low level feelings
Think of a brand you just like, & you don’t really know why.
Affect does not necessarily result from a conscious recognition of need satisfaction
Affect is weaker than attitude
Affect referral: the “how do I feel about it heuristic”
Affect is often generated from brand familiarity•The mere exposure effect•Visual Attributes•Co-Branding
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7. Decision Making Based on Variety-Seeking Needs
Variety-Seeking Needs (e.g., in soft drinks)– Satiation/Boredom– Optimal Stimulation/Sensation Seekers– Vicarious Exploration
Buying on Impulse/Impulse Purchases– Intense feeling– Disregard negative consequences– Euphoria/Excitement– Conflict between control vs. Indulgence– What impacted your last impulse purchase?
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Consumer $ Saving Strategies
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Under low-effort decision making, consumers often use performance tactics to choose a brand. This ad demonstrates that Tostitos Salsa Con Queso contains real cheese. The important feature of the brand is emphasized in the ad & packaging.
Courtesy Frito-Lay, Inc.
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Questions?