1 / 12

Judgments

Judgments. Types Likelihood Goodness/badness. Anchoring and adjustment processes Anchoring: Basic value against which other examples are judged (e.g., price of gasoline) Adjustment process: Based on repeated experiences, initial values may be updated. Mental Accounting.

glenda
Download Presentation

Judgments

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript


  1. Judgments • Types • Likelihood • Goodness/badness • Anchoring and adjustment processes • Anchoring: Basic value against which other examples are judged (e.g., price of gasoline) • Adjustment process: Based on repeated experiences, initial values may be updated.

  2. Mental Accounting • Consumers tend to see their spending as from “accounts” in a budget • The way an opportunity is categorized may affect a decision—e.g., “dining out” budget has been spent but “entertainment” budget has not • Something received as gift from a spouse may be cause of happiness even if the person would not have spent the same amount of money himself/herself. • “Emotional accounting”

  3. Biases in Judgment • Confirmation bias • Self-positivity • Negativity: Negative info is viewed as more “diagnostic” and weighted more heavily • Mood induced • Prior brand evaluations and experience (discounting or rejecting of new info) • Distortions due to calculation difficulty

  4. Decision Sets • Consideration set—possibilities that may be activity considered • Inept set—seen as unacceptable • Inert—seen with indifference • Attractiveness effect: Poor brands make brands in consideration set look better

  5. Issues in Selecting Decision Criteria • Goals • Time point • Construal theory: More abstract judgments are made about possible future decisions; decisions about actual impending purchases tend to be based on more concrete issues • Framing

  6. Compensatory vs. Non-Compensatory Decisions • Compensatory: Decision based on overall value of alternatives (good attribute can outweigh bad ones) • Non-compensatory: Absolutely must meet at least one important criterion (e.g., car must have automatic transmission)

  7. Brand vs. Attribute Based Processing • Brand based: Each brand is considered as a whole to be compared against other brands • Attribute based: Attributes are generally selected in order of importance, with the most important attribute considered for each brand, followed by the consideration of less important attributes

  8. Brand Based Models • Multiattribute Model (Expectancy-Value) • Conjunctive model: Each brand must meet a minimum cutoff on each attribute to remain “in the running” • Disjunctive model • Decision based on the most important variables rather than all • Consideration of both absolute minimum and “good” levels

  9. Multiattribute Models of Attitudeand Judgment--Review • Attitude computed as a function of multiple attributes weighted for importance: Ab= attitude toward brand b Wi: weight of attribute I Xib: belief about brand b’s performance on attribute I • Model assumes rationality Calculations will not be required on the exam. You should know conceptually what this involves conceptually—i.e., weighing importance and intensity of feeling.

  10. Attribute Based Models • Additive difference model: Brands are compared two at a time on all attributes—thus, there is some tradeoff between attributes • Lexicographic: A comparison is made based on the most important attribute, with lower importance attributes used for tie-breaking • Elimination by aspects: Brands with attributes below acceptable levels on attributes are sequentially eliminated, starting with the most important attribute

  11. Decisions Based on Gains and Losses • Consumers tend to be more sensitive to perceived “losses” rather than gains • Framing effects—attractiveness of an option will be judged based on whether framed as a “gain” or “loss”

  12. Other Issues in High Effort Decisions • Decision delay • Non-comparable options: Generally, the more different the alternatives, the more abstract the standards of evaluation

More Related