Consumer Behavior Midterm Flashcards
(25 cards)
Bias Blind Spot
Cannot control own bias
Hindsight Bias
Thinks they could predict outcome before it happened
Egocentric Bias
Thinking people are more like you then they actually are
Outgroup Homogeneity
“Girls like glitter, pink, Taylor Swift” stereotyping
Halo Effect
“Attractive people are nicer, more skilled than others”
Sunk Cost Effect
Costs are incurred and cannot be recovered
Decoy Effect
Adding an option that is less favorable to nudge consumers to more expensive one
Compromise Effect
People tend to choose the middle option, perceiving it as the safest or most balanced decision
Framing Effect
When choosing among losses, people are risk-seeking
When choosing among gains, people are risk-averse
Loss aversion
People are more sensitive to losses than gains
Implications of prospect theory
Segregate gains
Integrate losses
Silver lining effect
Cancel losses against large gains
5 Main Situational Elements
Physical surroundings
Social surroundings
Time
Purchase task definition
Antecedent states
Post-purchase experiences matter because…
repeat purchases
WOM comm
Customer satisfaction
Customer perception of actual product – customer expectation
Post-purchase dissonance
Thinking you made the wrong decision after a purchase
Decision Making Process
Problem recognition
Information search
Evaluation of alternatives
Purchase decision
Post-purchase
Low MAO
Low involvement
Minimal time spent
Low product cost
Internal info search
1 alternative considered
High MAO
High involvement
Long time spent
High product cost
Internal AND external
Many alternatives considered
Types of Problem Recognition
Need Recognition
Opportunity Recognition
Need Recognition
Actual state moves downward
Opportunity Recognition
Ideal state moved upward
Determinate Attributes
Features that differentiate products in a decision-making process
3 Types of Decision Rules
Compensatory
Non-compensatory
Heuristics
Compensatory
Pros/Cons (additive)
Multi-Attribute (weighted additive)
