BUS 347 Chapter Notes - Chapter 9: Cognitive Miser, Confirmation Bias, Bounded Rationality
10 Oct 2018
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Document Summary
The economics of information: traditional perspective that people search for process and assumed that people collect as much data as we need to make an information decision. Fact: many purchase decisions do not follow the rational model. Purchase momentum: occurs when initial impulses actually increase the likelihood that we will buy even more. Behavioural influence perspectives:under these circumstances managers must concentrate on assessing the characteristics of the environment. Experiential perspectives: stresses the gestalt or totality of the product or service. Hard for marketers to break habit if they want to introduce something new. People use simple decision rules among alternatives. Not motivated to do information search, not necessarily a habitual decision. Lots of time, thought. collecting info from memory or external search. Bounded rationality: condition under which we make many decisions (important) Think of all of the products you could buy and all of the sources of info you can attend to when planning a wedding.
