Consumer Behavior -- Exam 1
Context Effects
Prefernces depen on which other items are included in a choice set (compromise effect and asymmetric dominance effect), as well as how information is framed and anchored.
A consumer who falls back on "mental rules of thumb" when making a decision is using heuristics.
True
Decisions are influenced by the way a problem is posed. This is called framing.
True
If a consumer is following the lexicographic rule in her decision making, then she would select a brand that is the best on the most important attribute.
True
Jonesy will buy only the lowest-priced spark plug when he goes shopping for auto supplies. Because his car is very old, he really doesn't care about any other qualities. Jonesy is most likely using the noncompensatory decision rule.
True
The concepts of mental accounting, prospect theory, and perceived risk all remind a marketer that the customer's perception is more important than an objective reality when trying to understand consumer behavior.
True
Main Effect
What is the relationship (direction & degree) between each IV and DV
Causation
One variable producing an affect in another variable
Bias Blind-spot
"others are more biased than me" I can see others' behavior, but when assessing my own behavior, I introspect, and find no bias.
Conjunctive
(Criteria/cut-off based) Eliminate by criteria -- Choose option that meets certain cutoffs
Lexicographic
(Priority Based) "Winner take all" Choose the option that is best on the most important attribute
Three factors necesarry for causation
1) Correlation 2) Temporal Antecedence 3) No third factor driving both
Which of the following best explains how a minority of a product's users make up a majority of sales of that product?
80/20 rule
Anchoring
Anchors are initial, often irrelevant starting points for estimations
Introspection Illusion
Belief that you have insight into your mental states
When using the ____ rule of decision-making, a consumer evaluates brands on the most important attribute, but specific cutoffs are imposed.
Conjunctive
Asymmetric Dominance Effect
Occurs because people want to have a choice option that is easy to justify.
Framing
Example is 75% lean vs. 25% fat; The Same information presented as a loss or gain has a large effect on prefernces.
People often make decisions on the basis of mental accounting. One facet of this accounting is making a decision based on the way a problem was posed. This is Called
Framing
A mental or problem-solving shortcut to make a purchase decision is called a(n) ________.
Heuristics
Exploratory Research
In depth prospective taking
Interaction
In what way does the effect of one IV on the DV depend on the level of another IV
Non-Compensatory
Include Lexicographic, conjunctive and others
Confabulation
Invented narrative. A lay-theory explanation for mental states and behaviors. These are explicitly stated, occur spontaneously. Confabulations are vivid and believable.
80/20 Rule
Less than 20% of users account for greater than 80% of sales
When the ___ rule of decision-making is used, the brand that is the best on the most important attribute is the one selected.
Lexicographic
Casinos make their interiors very plush and expensive looking, knowing that gamblers who would be reluctant to make a $10 bet in average surroundings would gladly make $100 wagers in luxurious surroundings. Which of the following best explains the gamblers' behavior?
Mental accounting emphasizes the extraneous characteristics of the choice environment even if the results are not rational.
Adaptive Unconscious
Mental processes that are inaccessible to consciousness but that influence perception and behavior.
Common Effect Relationship
Multiple causes coverge on one effect
Takeaway
No direct questions to consumers when testing cutting edge.
Chen Lo used a decision rule that says, "only buy well-known brand names" when selecting a set of golf clubs. He did not look at price, the store, or even discounts when purchasing clubs. Chen Lo's purchasing pattern is an example of a consumer using a ____ rule.
Noncompensatory
A ____ rule means that a product with a low standing on one attribute cannot make up for this position by being better on another attribute.
Noncompensatory Decision
Under ______, utility is defined in terms of gains or losses.
Prospect's Theory
Compensatory Decision Rule
Selecting the option that has the best overall combination of attribute values, taking into consideration these attributes' decision weights.
Common Cause Relationship
Single cause results in multiple effects
Self-Reports
Socially desirable responding research methods
Independent Variable
The factors manipulated in a study to see if they affect the dependent variable. (often a categorical variable)
Dependent Variable
The factors measured to see if they are affected by the independent variable. (often a continuous variable)
Correlation
the degree to which two or more measurements on the same group of elements show a tendency to vary together
Compromise Effect
When several options differ in terms of how they tradeoff two attributes, consumers prefer the "middle" option -- that which has a moderate level of both attributes.
Default Options
When something is included as a default, it is more likely to be chosen than when it has to be actively chosen.
Experiment
When very specific hypotheses, resources available. Goal is to establish causality.
Concreteness Principle
format information in a way that makes it easy to use. (Tvivd examples, everyday language, common units and metrics)