Consumer Psychology Past Paper PSYC3850A

PSYC3850A Consumer Psychology PSYC3850A 1 Judgment and Decision Making Objectives 1. Definition a. Judgment vs. Decision Making 2. High Effort Decision Making a. Thought-based decision-making b. Feeling-based decision-making PSYC3850A...

PSYC3850A Consumer Psychology PSYC3850A 1 Judgment and Decision Making Objectives 1. Definition a. Judgment vs. Decision Making 2. High Effort Decision Making a. Thought-based decision-making b. Feeling-based decision-making PSYC3850A 2 Judgment and Decision Making Judgment Evaluation or estimate regarding the likelihood of outcomes or events  Estimation of likelihood (e.g., weight)  Estimation of goodness/badness (e.g., reputation) Decision making Making a selection among options or courses of action PSYC3850A 3 Judgment and Decision Making Goals of Decision Making Optimizing for high effort decision making  Finding the best possible options Satisficing for low effort decision making  Finding options that satisfies an immediate need (Next week) PSYC3850A 4  Decision Making High Effort Decision Making Deciding which options to consider Evoked Set  Options people can recall Consideration Set  Short-listed group of options Inept Set  Unacceptable group of options Inert Set  Indifferent group of options PSYC3850A 5  Decision Making High Effort Decision Making Criteria for the Choice Goal (Promotion vs. Prevention focus) Time (Construal theory)  Distant future events are abstract and positive  Immediate future events are concrete and negative Framing  Positive evaluation occurs when a brand frames its competitors positively and emphasize own strength. PSYC3850A 6  Decision Making High Effort Decision Making Thought-based decision about brands Target: Brands vs. Attributes Reaction to negative feature:  Compensatory vs. Noncompensatory PSYC3850A 7  Decision Making High Effort Decision Making Thought-based decision about brands Processing by Brands  Multiattribute model o Includes both positive and negative attributes weighted by importance  Conjunctive vs. Disjunctive model PSYC3850A 8 Which apartment would you choose? Multiattribute model Attribute A B C D E Importance Choice Cost 5 3 4 4 2 35 Size 3 4 5 4 3 25 Location 5 5 5 2 5 20 View 1 3 1 4 1 15 Pool 3 3 4 3 5 5 Overall 380 365 400 355 285 Decision  PSYC3850A 9 (5x35)+(3x25)+(5x20)+(1x15)+(3x5)=380  Decision Making High Effort Decision Making Thought-based decision about brands Processing by Brands  Multiattribute model  Conjunctive vs. Disjunctive model o Conjunctive set cutoff to reject bad option o Disjunctive set acceptable cutoff for good option PSYC3850A 10 Which apartment would you choose? Conjunctive model Minimum cutoff < 2 Attribute A B C D E Importance Choice Cost 5 3 4 4 2 35 Size 3 4 5 4 3 25 Location 5 5 5 2 5 20 View 1 3 1 4 1 15 Pool 3 3 4 3 5 5 Decision   PSYC3850A 11 Which apartment would you choose? Disjunctive model Acceptable cutoff ≥ 3 Attribute A B C D E Importance Choice Cost 5 3 4 4 2 35 Size 3 4 5 4 3 25 Location 5 5 5 2 5 20 View 1 3 1 4 1 15 Pool 3 3 4 3 5 5 Decision  PSYC3850A 12