Chapter 11

JUDGMENT AND DECISION

MAKING: LOW CONSUMER
EFFORT

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 Chapter Overview

 Low vs. High Effort decision making

 Low effort judgement
 Low effort decision making processes
 Low effort cognitive decision making
» simplifying strategies
 Low effort emotional decision making
“Why should I care about
the brand of batteries
I buy? They’re all the
same!”
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Low- vs. High-Effort Decision
Making
High Effort Low
Effort
BELIEFS BELIEFS
(think) (think)

Learning
ATTITUDES BEHAVIOR
(feel) (do)

BEHAVIOR ATTITUDES
(do) (feel)

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 Low Effort Judgement

Heuristics commonly used

» simplified decision rule
 Representativeness:
Comparison to known
alternatives
 Availability: More
accessible or vivid
impressions are more
impactful

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 The Availability Heuristic
 Base-rate info may be ignored
» You get a “lemon” and stay away from that car
manufacturer, whose general record of reliability is good

 Law of small numbers

» Experience of few people generalized to entire population

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 Choice Simplification
Strategies

 Satisficing decisions: Good

enough is good enough!
 Choice tactics, e.g.:
» price
» affect
» performance
» normative
» recommendation (WOM or
from salesperson)

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 Learning of Choice Tactics

 Operant conditioning
» reinforcement
– good performance
– liked product
– social approval
Repurchase
– solved problem
» punishment
– poor performance
“Not bad!” – caused problems

Change behavior

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 Low-Effort Thought-Based
Decision Making

 Simplifying Strategies
» Performance-related
» H
» Brand loyalty
» P
» Normative

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Individual Application Exercise

 Apply each of the simplifying strategies

to the decision of where to buy gasoline
for your car.
 Provide a specific, detailed statement to
illustrate each choice tactic (i.e., “I buy
gas at Chevron because……”).
 Discuss with the class

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 Low-Effort Feeling-Based
Decision Making

 Feeling
» affect referral
» brand familiarity
 Variety-Seeking
 Impulse Buying

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 Chapter 11 Review
 Low effort Judgement Processes
» heuristics
 Low effort Decision-Making Processes
» low effort vs. high effort
» operant conditioning
 Low effort cognitive decision making
» simplifying strategies (5)
 Low effort affective decision making
» Feelings, variety seeking & impulse buys
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