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Judgment and Decision-Making Based on High Effort - Deciding What Brand to Choose: Thought-Based Decisions

5 important questions on Judgment and Decision-Making Based on High Effort - Deciding What Brand to Choose: Thought-Based Decisions

When making a thought-based decision, consumers can deploy different cognitive systems (models). What kind of cognitive decision-making models are there?

There are four categories, and there is a distinction between 2 types:

Processing by brand vs attitude
Compensatory vs non-compensatory models.

Compensatory: high mental effort, in this model negative features can be compensated for by positive ones.
Non-compensatory: low cognitive effort, in this model offerings with a negative evaluation are immediately eliminated from the consideration set. Consumers decide on a cutoff-level.

With a cognitive decision-making model based on brand processing, there are three types models known. What are these three?

With brand-processing, consumers evaluate one brand at a time.
Compensatory brand-processing cognitive model: multi-attribute expectancy-value models (such as TORA)

Non-compensatory brand-processing cognitive model:

conjunctive model;
disjunctive model.

When consumers deploy a cognitive decision-making model based on brand processing that is non-compensatory, they can use two kinds of models. Which are these?

1. Conjunctive model: here consumers set up minimum cutoffs for each attribute to immediately reject "bad" options.
2. Disjunctive model: here consumers set up acceptable cutoffs on most important attributes to find options that are "good"

Next to brand-processing, consumers can also make cognitive decisions based on attribute-processing. What does this mean and what kind of models fall into this category?

Attribute processing is when consumers compare across brands on attribute at a time. There are 3 models:

Compensatory attribute-processing cognitive model:

Additive difference model

Noncompensatory attribute-processing cognitive model:

Lexicographic model: consumer compares one attribute at a time, in specific order of the most important to least important. If one option dominates, consumer chooses this option.
Elimination-by-aspects model: similar to lexicographic model, but incorporates acceptable cutoff and is not as strict (so considers more options). It is always in the specific order from most important to least important though!

Next to decision-making processes based on cognitive models, the decisions consumers make are also influenced by gains and losses. Why is that?

This is because of the prospect theory. Losses loom larger than gains for consumers, even when the two outcomes are of the same magnitude.

The endowment effect illustrates this: with ownership we increase the value of an item in our heads.

The question on the page originate from the summary of the following study material:

Consumer Behavior | 9780357721292 | Wayne D Hoyer, et al

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Judgment and Decision-Making Based on High Effort - Deciding What Brand to Choose: Thought-Based Decisions

5 important questions on Judgment and Decision-Making Based on High Effort - Deciding What Brand to Choose: Thought-Based Decisions

When making a thought-based decision, consumers can deploy different cognitive systems (models). What kind of cognitive decision-making models are there?

With a cognitive decision-making model based on brand processing, there are three types models known. What are these three?

When consumers deploy a cognitive decision-making model based on brand processing that is non-compensatory, they can use two kinds of models. Which are these?

Next to brand-processing, consumers can also make cognitive decisions based on attribute-processing. What does this mean and what kind of models fall into this category?

Next to decision-making processes based on cognitive models, the decisions consumers make are also influenced by gains and losses. Why is that?

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