Transcript Criteria for Development of Message Ideas

Chapter 9
Judgment and Decision Making
Based on Low Consumer Effort
© 2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Learning Objectives~ Ch. 9
1. Identify the types of heuristics that consumers can use to
make simple judgments.
2. Explain why marketers need to understand both
unconscious and conscious decision-making processes in
low-effort situations.
3. Show how the hierarchy of effects and operant conditioning
explain consumers’ low-effort decision making.
4. Discuss how consumers make thought-based low-effort
decisions using performance-related tactics, habit, brand
loyalty, price-related tactics, and normative influences.
5. Describe how consumers make affect-based low-effort
decisions using feelings as a simplifying strategy, brand
familiarity, variety seeking, and impulse purchasing.
© 2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Shortcuts in Making LowEffort Judgments
A heuristic is a “rule of thumb” to simplify things
Representativeness heuristic: Comparing a stimulus
with the category prototype/exemplar
Availability heuristics: Basing judgments on events
that are easier to recall
– Base-rate information
– Law of small numbers
© 2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
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
© 2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
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
© 2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
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
© 2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
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
© 2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
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
© 2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
2. Habit
as 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
© 2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
3. Brand Loyalty
as a Simplifying Strategy
Brand/Multibrand Loyalty
– Purchase pattern + commitment to brand
– Cognitive lock-in
– Resistant to competitive efforts
– Quality/Satisfaction
© 2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
4. Price
as a Simplifying Strategy
Consumer Side
Price Considerations:
− Zone of
acceptance
− Price perceptions
− Deal-prone
consumers
− Price
consciousness is
not static
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
© 2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
5. Normative Influences
as a Simplifying Strategy
Others can influence consumers’ low-elaboration
decision making
Normative Influences
– Direct
– Vicarious
– Indirect
© 2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
6. Feelings/Affect
as 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
© 2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
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?
© 2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.