MARK 5342 - Advanced Topics
Neuro-science and Decision-Making Module - 4 weeks
Week 1 – Limbic structures of the brain
Neuroscience (Shiv, 2005)
Physiology – amygdala, hippocampus, cortex, spindle cells, frontal orbital cortex, etc.
Perception and processing of information (Loftus and Palmer, 1974)
Affect's impact on decisions (Isen, 2001)
Iowa gambling task (Bechara, 2005)
Roles of affect and cognition (Lehrer, 2009)
Week 2 – Evolution of decision-making
Heuristics and biases (Tversky and Kahneman, 1974)
Impact of context and framing (Tversky and Kahneman, 1981)
Economists and movement to satisficing (Simon, 1959)
Impact of risk aversion (Lichtenstein and Slovic, 1971)
Prospect theory (Kahneman and Tversky, 1979)
Decisions under uncertainty (Fox, 1998)
Preferences under risk (Chiappori, 2009)
Week 3 – Decision-making strategies
Strategies utilized (Plous book, Ch. 9)
Complex decisions (Plous, Ch 19, 21)
Facilitators versus barriers to decision-making
Impact of community and society (Plous Ch. 12, 15-18)
Week 4 – Implications for Marketing and Marketing Research
Role of needs versus wants (Chou, 2009)
Satisfaction (Oliver, 1993)
Loyalty (Oliver, 1999)
Impact on brand promises and consumer preference (Anonymous, 2004),(Lannon, 2008)
Brand attachment (Simonson, 1989)
The role of emotion in brand identity
Future trends – technology, youth, ethics, pace of life
Readings (as of 1/3/2011)
Books
• Lehrer, Jonah (2010), How We Decide , Mariner Books, ISBN 978-0-618-62011-1
• Plous, Scott (1993), The Psychology of Judgment and Decision Making, McGraw Hill, ISBN 0-07050477-6
Articles
• Anonymous (2004), "Barometer Methodology," Finance Week, November, 3-4.
• Bechara, Antoine, Hanna Damasio, Daniel Tranel, and Antonio R. Damasio (2005), “The Iowa
Gambling Task and the Somatic Marker Hypothesis,” Trends in Cognitive Science, 9, 159-162.
• Chiappori, Pierre-Andre, Amit Gandhi, Bernard Salanie, and Francois Salanie (2009), "Identifying
Preferences under Risk from Discrete Choices," American Economic Review: Papers and
Proceedings, 99(2), 356-362.
• Chou, Ting-Jui and Veronica Wong, "Unraveling Concealed Cognitive Structures," International
Journal of Marketing Research, 51(4), 521-569.
• Fox, Craig and Amos Tversky (1998), "A Belief-Based Account of Decision Under Uncertainty,"
Management Science, 44(7), 879-895
• Isen, Alice (2001), "An Influence of Positive Affect on Decision Making in Complex Situations:
Theoretical Issues with Practical Implications," Journal of Psychology, 11(2), 75-85.
• Kahneman, Daniel and Amos Tversky (1979), “Prospect Theory: An Analysis of Judgment under
Risk,” Econometrica, 47, 263-291.
• Lannon, Judie (2008), "Promises, Promises," Market Leader, Spring, 3.
• Lichtenstein, S. and P. Slovic (1971), “Reversals of preference between bids and choices in
gambling decisions,” Journal of Experimental Psychology, 101, 16-20.
• Loftus, E.F. and Palmer, J. C. (1974), “Reconstruction of automobile destruction: An example of
the interaction between language and memory,” Journal of Verbal Learning and Verbal
Behavior, 13, 585-589.
• Oliver, Richard (1993), "Cognitive, Affective, and Attribute Bases of the Satisfaction Response,"
Journal of Consumer Research, 20, 418-431.
• Oliver, Richard (1999), "Whence Customer Loyalty?" Journal of Marketing, 63, 33-44.
• Shiv, Baba, Antoine Bechara, Irwin Levin, Joseph Alba, James Bettman, Laurette Dube, Alice Isen,
Barbara Mellers, Ale Smidts, Susan Grant, A. McGraw (2005),"Decision Neuroscience,"
Marketing Letters, 16(3/4), 375-386.
• Simon, Herbert (1956), “Rational Choice and the Structure of the Environment,” Psychological
Review, 63, 129-138.
• Simonson, Itamar (1989), "Choice Based on Reasons: The Case of Attraction and Compromise
Effects," Journal of Consumer Research, 16(2), 158-174
• Tversky, Amos and Daniel Kahneman (1974), “Judgment under Uncertainty: Heuristics and
biases,” Science, 185, 1124-1130.
• Tversky, Amos and Daniel Kahneman (1981), “The Framing of Decision and the Psychology of
Choice,” Science, 211, 453-458.