C8 MARESCOB

• Judgment


  Evaluation of an object or estimation of likelihood of an outcome or event
• Decision-making


  Making a selection among options or activities
• Judgment processes


  • Estimation of likelihood
  • Judgment of goodness or badness
• Anchoring and adjustment


  Starting with initial evaluation and adjusting it with additional information
• Imagery


  Imagining an event in order to make judgments
• Mental accounting


  Categorizing spending and saving decisions into accounts mentally designated for specific consumption transactions, goal, or situations
• Emotional accounting


  Intensity of positive or negative feelings associated with each mental account for saving or spending
• Biases in judgment processes

  • Confirmation
  • Self-positivity
  • Negativity
  • Mood
  • Prior brand evaluations
  • Prior experience
  • Difficulty of mental calculations
• Inept set, inert set, consideration set


  • Options that consumers consider when deciding which brands to consider
• Attraction effect


  Addition of inferior brands to a consideration set increases the attractiveness of dominant brands
• Factors in high-effort consumer decisions

  • Deciding which brands to consider
  • Deciding what is important to the choice
  • Deciding what brand to choose
  • Deciding whether to make a decision now
  • Deciding when alternatives cannot be compared
• Compensatory models


  Negative features can be compensated for by positive ones
• Noncompensatory models


  Negative information leads to rejection of option
• Multiattribute expectancy-value model


  Type of brand-based compensatory model
• Additive difference model


  Brands are compared by attribute, two brands at a time
• Conjunctive model


  Sets minimum cutoffs to reject bad options
• Lexicographic model


  Compares brands by attributes, one at a time in order of importance
• Disjunctive model


  Sets acceptable cutoffs to find options that are good
• Elimination-by-aspects model


  Similar to lexicographic model but adds the notion of acceptable cutoffs
• Prospect theory


  Losses have more influence than gains
• Endowment effect


  Ownership increases the value of an item
• Consumers have stronger reaction to price increases than price decreases
• Appraisal theory


  Explains how one's emotions are determined by how one appraises the situation, and how and why certain emotions can affect future judgments and choices
• Affective forecasting


  Predicts how one will feel in the future
• Imagery


  Consumer imagines consuming a product or service, plays a key role in emotional decision-making
• Reasons for decision delay

  • Decision is risky, uncertain, or involves an unpleasant task
• Noncomparable decision


  Making decisions about products or services from different categories
• Alternative-based strategy


  Choice based on overall evaluation
• Attribute-based strategy


  Choice based on abstract representations of comparable attributes
• Consumer characteristics affecting decisions

  • Expertise
  • Detailed consumption vocabularies
  • Good mood
  • Time pressure
  • Extremeness aversion
  • Compromise effect
  • Attribute balancing
  • Metacognitive experiences
• Individual-alone goals


  Goals attained by an individual's action alone
• Individual-group goals


  Goals achieved based on actions of an individual and a group