MGMC02H3 Study Guide - Final Guide: Affective Forecasting, Decision-Making, Confirmation Bias
Document Summary
Imagery: imagining an event in order to make a judgement. Inept set: options that are unacceptable when making a decision. Q3 - deciding what brand to choose - thought vs feeling based decisions. Thought based decisions: cognitive decision making models: the process by which consumers systematically combine items of information about attributes to reach a decision. To prospect theory, losses loom larger than gains for consumers even when the two outcomes are of the same magnitude: endowment effect: when ownership increases the value of an item & the sense of loss. Imagery: plays an important role in emotional decision makign. Inviting consumers to interact with online demonstrations can evoke mental images: adding information makes imagery processing easier. How characteristics of consumers, their situation, and their group affects their decisions. Decision characteristics - affect how consumers make their choices. Information availability - more information - decision is more complex & need to use a more detailed decision strategy.
