Consumer Behavior and Marketing Insights

A measure of the relationship between two variables, in this case, Amazon star ratings and independent product quality.

When higher Amazon star ratings are associated with higher quality products (e.g., products with 5 stars tend to be better than those with 1 star).

When there is no relationship between Amazon star ratings and product quality.

When higher Amazon star ratings are associated with lower quality products (e.g., 5-star products are actually worse than 1-star products).

A study where participants are asked to rate products without knowing the price, to isolate the influence of price on their judgments.

A cognitive bias where people overestimate their abilities or knowledge.

A technique that encourages individuals to actively consider reasons why their beliefs might be incorrect. It involves actively searching for evidence that contradicts their initial perspective.

Providing information about a person's performance compared to others to highlight their strengths or weaknesses.

A group in a study that receives no specific treatment or manipulation, serving as a baseline for comparison with other groups.

A study design where participants are randomly assigned to different treatment groups to ensure fairness and minimize bias.

The phenomenon where providing a wider range of choices can lead to a decrease in satisfaction or likelihood of making a decision.

The tendency for individuals to be less likely to invest in a pension plan when presented with a larger number of investment options.

The concept that the value or utility of a given alternative is independent of the values or utilities of other available alternatives. Each option is evaluated on its own merits, without comparison.

A study design where participants are exposed to different numbers of alternatives to observe the effect on their decision-making or satisfaction.

The tendency for consumers to choose a smaller size option when faced with a larger option that offers greater value.

A decision-making strategy where you compare options based on the most important attribute first, then the second most important, and so on, until you have a clear winner.

A strategy where you eliminate choices that don't meet a minimum threshold on the most important attribute, then the second most important, and so on, until only one choice remains.

A decision-making approach where you choose the first option that meets your minimum requirements on all important attributes, rather than searching for the absolute best option.

The theory of how people should make decisions, based on logic and rationality.

The theory of how people actually make decisions, taking into account biases and heuristics.

A hypothetical individual who makes perfectly rational decisions based on maximizing their own self-interest, often used as a benchmark for comparing actual human behavior.

A more realistic model of human behavior that acknowledges cognitive biases and heuristics, making decisions that are not always perfectly rational.

The tendency to be more sensitive to potential losses than to potential gains, even if the amount of money involved is the same.

A brand has positive equity when consumers react more favorably to its marketing mix than they would to the same mix applied to a generic or unnamed product or service.

A brand's awareness is the recognition (knowing the brand) and recall (remembering the brand) it earns among target consumers.

Brand image is the overall perception consumers have of a brand based on their experiences and associations.

A brand's knowledge encompasses all the associations, beliefs, and perceptions that consumers have about a brand.

The concept that brand knowledge, particularly the image associated with a brand, can influence consumer behavior and preferences.

A situation where a brand's image and associated knowledge are not compatible with the product or service it is marketed for.

The spreading of activation through a network of information nodes in the brain, where connections strengthen memories.

The ability to process information through a network of connections in long-term memory.

A persuasion technique where you start by asking for a large, unreasonable request that you know will be denied, then follow up with a smaller, more reasonable request that you actually want the person to agree to. The smaller request seems more appealing in comparison to the initial large request.

A persuasion technique where you start by asking for a small request that people are likely to agree to, then follow up with a larger request that you actually want them to agree to. People are more likely to agree to the larger request because they've already committed to the smaller one.

When people's judgments are heavily influenced by highly memorable events, even if those events are not statistically representative of the overall situation. It can lead to inaccurate estimations and decisions.

The tendency for individuals to behave in a way that aligns with their previous actions or commitments, even if those actions don't reflect their true feelings. It can lead to consistency in behavior, often through conscious or subconscious effort.

A feeling of obligation to return a favor or act kindly to someone who has done something nice for you.

The tendency for individuals to assume that their own opinions and experiences are more prevalent than they actually are, leading to overestimations of their own importance and the frequency of their beliefs.

A situation where a person offers a large, unreasonable request as a reference point, making a smaller, more reasonable request seem more acceptable in comparison.

A situation where a person uses a negative reference point to make a situation appear more favorable in comparison.