Management and Organizational Studies 1021A/B Lecture Notes - Lecture 7: Prospect Theory, Far-Sightedness, Loss Aversion

• School: Western University
• Department: Management and Organizational Studies
• Course: Management and Organizational Studies 1021A/B
• Professor: Bonnie Simpson

Document Summary

We can look at consumption as a response to a problem. Decision making process is the steps we go through to solve the problem. Decisions are becoming harder as there are too many options ultimately people become less capable, less satisfied you"re simply less likely to choose any or purchase. Problem recognition information search evaluate alternatives product choice consumption and learning. Collecting as much information as is useful to us, and weighing information carefully. Purchase momentum reasons we continue to buy stuff aftert the need has been fulfilled. Exposure to different/better products, sales, standard of comparison. We survey our environment for adequate information to solve the problem. Pre-purchase: going out and looking at phones browsing: casually looking at phones. Ongoing: constantly looking at the new product, looking at when it might come out. Directed learning vs. incidental learning (conditioned stimuli and observations of others) directed: incidental: watching how other people engage with that product.