MRKT 452 Lecture Notes - Lecture 2: Availability Heuristic, Store Brand, Risk Aversion
28 Sep 2017
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Video lecture #2 biases, judgements, decisions part i. Advertising, store design, pricing, branding, online reviews. Judgement bias: gap between rational and actual judgement. Judgement heuristics: availability vivid (easily recalled) info is more important than less vivid info for risk/probability judgements. Ex. thousands of riders shunned buses following the death of rider. An availability heuristic is a mental shortcut that relies on immediate examples that come to mind. When you are trying to make a decision, a number of related events or situations might immediately spring to the forefront of your thoughts. Credit card: difficult to visualize loss, more spending. Easily remembered info has a ring of truth. (cid:862)depe(cid:374)da(cid:271)le(cid:863) asso(cid:272)iatio(cid:374) ex. store brand is assumed to be dependable. Blue packaging = fresh, green packaging = natural. Negative repels more than positive attracts (weight negative > positive) Opponent emphasizes losing guns, proponents emphasize gaining safety. Opponent emphasizes raising taxes, proponents emphasizes cleaner environment. Middle option = best of both worlds.
