Chapter 10
JUDGMENT AND DECISION
MAKING:
HIGH CONSUMER EFFORT
1
A General Model of Consumer Problem
Solving
Problem Recognition
Search for Information
Evaluation of
Alternatives
Choice Decision
Purchase
Postpurchase Use and
Reevaluation
2
Chapter Overview


Judgment
Thought-based (cognitive)
decision making
» Four types of decision processes



Feeling-based (affective)
decision making
Decisions when comparison of
alternatives is difficult
How context impacts decisions
» Framing
3
Judgments vs. Decisions
Judgments
Evaluations; actual
choice between
alternatives not made
Decisions
Choice between
alternatives; based
in part on judgments
4
Decision-Making Issues

“Rational” decision
criteria
» decisions well
thought out;
alternatives
compared
» cost vs. benefit

Emotional bases
» how does each
option make you
feel?
One credit card offers a
low interest rate, but
another has an extended
warranty.
The American Express
card make me feel
successful!
5
Cognitive Decision Making
(High Effort)

Compensatory vs. noncompensatory models

Brand vs. attribute-based
processing
“I got an F in
Calculus. Who
cares--I got an A in
intro to golf!”
6
Types of Decision Models
Compensatory
Noncompensatory
Processing
by Brand
Multi-attribute
(e.g. TORA)
Conjunctive
Disjunctive
Processing
by Attribute
Additive Difference
Lexicographic
Elimination by aspects
7
Compensatory/Attribute
Processing Models

Additive Difference Models
» brands compared by attribute, two at a time
» differences added up as decision maker
proceeds by attribute; e.g.:
Attribute 1
Attribute 2
Attribute 3
Brand A
Brand B
Difference
3
4
-1
4
2
2
6
4
2
----------------------------------------------------
TOTAL (A vs. B)
+3
8
Noncompensatory Brand
Processing Models

Conjunctive models
» acceptability cutoffs (minimums) set for each
attribute
» “AND” rule

Disjunctive model
» set high standards for attributes
» “OR” rule
9
Noncompensatory Attribute
Processing Models

Lexicographic Model
» Attributes ordered by
importance
» Stop when one choice
dominates

Elimination by aspects
» Attributes ordered by
importance
» Stop when only one option
remains
10
Reality of Consumer Decision
Making

Consumers may use multiple decision-making
strategies
ALL
ALTERNATIVES
SURVIVING
ALTERNATIVES
11
Group Application Exercise:
Cognitive Decision Making

Get into groups of 3-5. You will be assigned ONE
of the 3 decision making approaches shown
below.
(1)Noncompensatory/Processing by brand
(2)Noncompensatory/Processing by attribute
(3)Compensatory/Processing by attribute

Write a scenario showing how your cognitive
decision making approach could be applied to
deciding what college to attend.
12
Marketing Implications
Product D
 Product P
 Cut-off Levels for Product Design
 Rank order of Attributes
 Encourage Switching between decision
models

13
High-Effort Feeling-Based
Decisions

Common for offerings
with hedonic, symbolic, or
aesthetic attributes

Is frequently combined
with cognitive processing
14
Deciding Between NonComparable Alternatives

Alternative- based
strategy
» overall evaluation of each
option

Attribute-based strategy
» abstract evaluation of
alternatives for each option
15
Decision-Making Context

Consumer
characteristics
» motivation to process
» ability to process
» opportunity to
process

Task
characteristics
» consideration set
» availability of info

Framing
» by the consumer
» external framing
16
Chapter 10 Review
Judgement
 Rational Decision Making

» Compensatory vs. Noncompensatory
» Processing by Brand vs. Processing by
Attribute
Affective Decision Making
 Deciding When Alternatives Can’t Easily
be Compared
 Influence of Context on Decision Making

17