COMMERCE 3MB3 Chapter Notes - Chapter 9: Decision Rule, Customer Switching, Bounded Rationality
10 Feb 2018
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Consumer hyperchoice: a condition where the large number of available options forces us to make repeated choices that may drain psychological energy while decreasing our abilities to make smart decisions. Rational perspective: people calmly and carefully integrate as much information as possible with what they already know about a product, painstakingly weigh the pluses and minuses of each alternative, and arrive at a satisfactory decision. Economics of information: assumes that we collect just as much data as we need to make an informed decision. Purchase momentum: occurs when these initial impulses actually increase the likelihood that we will (cid:271)u(cid:455) e(cid:448)e(cid:374) (cid:373)ore (cid:894)i(cid:374)stead of less as our (cid:374)eeds are satisfied(cid:895), al(cid:373)ost as if (cid:449)e get (cid:862)re(cid:448)(cid:448)ed up(cid:863) a(cid:374)d plu(cid:374)ge into a spending spree. Rational system of cognition: processes information analytically and sequentially using rules of logic. Experiential system of cognition: processes information more holistically and in parallel.
