Flashcards in Exam 2 Other Material such as Ted Talks Deck (35):
What is Dan Ariely saying about the control of our own decisions?
He says that with illusions such as longness of tables, colours of squares and whatnot, we learn what the illusion is, but we still can't see it correctly. We still are tricked by the illusion.
This is a metaphor for our "decision illusions"!
So he says that we are not really making our own decisions, it is the person making the form that makes the decision. Such as the DMV form of opt-in organ (nobody), opt-out organ (nobody, so everyone in it). It is because this decision is somewhat hard, so instead of deciding we let the form decide for us.
Are humans rational decision makers?
No! We make really irrational decisions, usually the one that is easier/default from form.
How don't we know our preferences very well?
Well, we don't know whether we like an option that well. We're bad at that. So if theres 3 options, and one is really clearly a bad one and it looks like it could just be taken out of the 3, but really that 3rd shitty option is helping make a decision! Such as economist:
1. Web only sub $59
2. Paper only $125
3. Paper and web $125
Option two is clear loser, but it makes people choose option 3. If option 2 doesn't exist, then more people choose 1
What is silver lining to Dan Ariely talks?
When we are building our world, we understand our limitations and build around it. But with our mental world we forget that we are limited. But if we consider our mental limitations we can go beyond and build a better world
What is the Official Dogma or all western industrial societies?
If we are interested in maximizing welfare of citizens, then we need to maximize freedom because it's good, valuable, etc and if people have freedom than we can act as our own and nobody decides on our behalf.
Maximize choices will maximize freedom, which maximizes welfare. At least this is so ingrained in the western society, but this is not right he says! Too much choice is bad, and does not improve welfare
What is Barry Schwartz saying about the paradox of choice?
Choice has two negative effects on people:
1. Paralysis, with lots of choices people don't choose at all. So with smart phones, you offer too many choices, then they just hold off forever. Offer 2 Apple iPhones, it's much easier.
Even if we manage to overcome paralysis, we end up less satisfied with the choice than if there were fewer options! It's because it's easier to imagine than one of the choices was a better decisions than the one we made.
2. Opportunity Cost: Opportunity costs subtract from the satisfaction of what we choose. So if we go on vacation when everybody does, we'll be nagged that all the stores and attractions back home will have less lineups and more enjoyable.
How does having more choices make you less satisfied with the outcome?
Because when we add more options, our expectations about the product increase as well! So there were a ton of android phones for me to choose from, so when I used the one I chose, I wasn't very happy about it. Yet I was happy with that LG Shine, because it was the best of the best at the time.
What does Barry Schwartz say the secret to happiness is?
Have low expectations!
How does responsibility shift with more choices?
With one choice, the world is responsible for your bad outcome.
With many choices you are responsible for your bad outcome because you CHOSE IT.
What are 4 reasons why choice makes people Miserable?
1. Regret and anticipated regret
2. Opportunity costs
3. Escalation of expectations
These are all in the flashcards scattered about haha
In a nutshell, what is Barry Schwartz saying about freedom of choice?
Choice has made us not freer but more paralyzed, not happier but more dissatisfied
Consumers value harmony among their thoughts, feelings, and behaviours and are motivated to maintain uniformity among these elements. This is known as the what?
principle of cognitive consistency
According to the Fishbein model of attitude formation, _________________ refers to the probability that a particular object has an important attribute
According to the Fishbein model of attitude formation, OBJECT-ATTRIBUTE LINKAGES refers to the probability that a particular object has an important attribute
What is the improved version of the Fishbein model called?
What two things were added?
The theory of reasoned action
Subjective norm was added to see social pressure influences
Attitude toward buying was added, rather than just looking at attitude toward product itself
What is social judgement theory?
Assumes that people assimilate new information about attitude objects in light of what they already know or feel.
So frame of reference is initial attitude
Latitudes of acceptance and rejection.
In latitude will be favourably received, out will not. So if your an Apple fan and you see bendgate, your latitude will be smaller to those outside things and land outside it. This info will then be rejected
The uses and gratifications theory states what?
consumers are an active, goal-directed audience that draws on mass media as a resource to satisfy needs
What does the sleeper effect suggest about source credibility
The effectiveness of positive sources over negative sources can be erased over time
Most messages merely present one or more positive attributes about the product or reasons to buy it. These are known as what?
The positive side of _______________ is that it increases familiarity and thus reduces uncertainty about the product
For the elaboration likelihood model of persuasion (ELM), under conditions of low involvement, what route is taken?
What are the implications for promotion strategy
Peripheral route is taken
So promotions should be patterned on source attractiveness
Taylor is known to be paid to use a certain shoe. The source credibility for the shoe would be compromised by what?
What are the features we actually use to differentiate among our possible choices
determinant attributes are the features we actually use to differentiate among our possible choice
When analyzing categorization techniques, the third, more specific ____________________ often includes individual brands
When analyzing categorization techniques, the third, more specific subordinante often includes individual brands
often as a way to reduce the costs of the decision- making process. This is called a ________ solution ( economist Herbert Simon even won a Nobel Prize for this idea in 1956). Since we rarely have the resources ( especially the time) to weigh every possible factor into a decision, we will often happily settle for a solution that is just good enough. This perspective on decision- making is called ___________
often as a way to reduce the costs of the decision- making process. This is called a SATISFICING solution ( economist Herbert Simon even won a Nobel Prize for this idea in 1956). Since we rarely have the resources ( especially the time) to weigh every possible factor into a decision, we will often happily settle for a solution that is just good enough. This perspective on decision- making is called BOUNDED RATIONALITY
Grant has always been fascinated with model train sets and continues to research their origins and add to his collection whenever he can. He is proud to say that he currently has the largest collection of train sets in Canada. A friend of his suggested that he become a "cybermediary". This would mean that Grant would ________________
organize an online user group for model train enthusiasts
Guy has been taking part in a research effort for several months now. The researchers are interested in Guy's purchasing behaviour. They observed that at times when product information is incomplete, Guy's decision to purchase a product will be influenced by the retail outlet where the product is available or the country from which it originates. In their report the researchers write, "The subject's erroneous beliefs tend to persist despite evidence to the contrary when he makes his purchase decisions." Which of the following concepts best explains the purchase behaviour observed by the researchers?
Covariation of beliefs
The alternatives a consumer knows about are his or her __________________
Other patrons in a retail setting are known as ________________
Putting items in an out-of-the way location, such as a garage or attic, before disposing of them is an example of which divestment ritual
transition place ritual
An individual's decision to purchase a particular brand is influenced by the preferences of family members." This is an example of the ___________ influence of reference groups.
likelihood that people will become part of a consumer's identified reference group is affected by several factors. For instance, as physical distance between people decreases and opportunities for interaction increase, relationships are more likely to form. What is this known as?
As more people are involved in a decision, each individual is less accountable for the outcome, resulting in _______________
diffusion of responsibility
People tend to choose a ______________ (a person of equal standing) when performing social comparisons
what is homophily?
Homophily is the degree to which a pair of individuals is similar in terms of education, social status, and beliefs