Exam 1 CB

Dominated Options

An inferior choice is introduced to make another choice seem more attractive.

Default Option

Pre-set options that people tend to stick with, even when alternative choices exist.

Framing

The presentation of information can lead to different decisions depending on how the information is conveyed.

Positive vs Negative Framing

The same statistics can lead to different choices based on positive versus negative framing.

Anchoring

Overreliance on early information can skew our perceptions and decisions.

Herding

Decisions based on actions of others or our previous behavior, often leading to similar choices.

Social Herding

Making choices based on crowd size and volume, which influences individual decisions.

Self Herding

Making decisions based on our own prior choices that were deemed acceptable in the past.

Zero Cost

Drives us to overvalue free things, often leading to irrational decision-making.

Slow - System 2

Involves Directed Attention, requiring careful thought and consideration.

Fast - System 1

Involves Quick Processing with little or no cognitive effort, leading to instinctual decisions.

5 Step Model

Includes Recognize, Search, Evaluate, Decision, and Post-Decision analysis.

Absolute Threshold

The lowest level of stimulation that can be detected by a sensory receptor.

Differential Threshold

Ability to detect changes or differences between two stimuli (known as j.n.d., or just noticeable difference).

Weber’s Law

States that the stronger the initial stimuli, the greater the change required to get subsequent changes noticed.

Mere Exposure

Exposure at or right below the conscious level which directs thoughts, feelings, and behaviors towards familiar stimuli.

Cognitive Ease

Refers to processing that occurs with minimal effort, leading to subjective ease in understanding.

Perceptual Selection

We attend to only a small portion of what we are exposed to in our environment.

Perceptual Vigilance

We are more likely to be aware of things that relate to our current needs and priorities.

Involuntary Attention

Results from novel stimuli that capture our focus without conscious effort.

Behavioral Learning

Occurs as a result of some external event influencing behavior and responses.

Classical Conditioning

Involves pairing a stimulus that elicits a response with another stimulus that does not initially elicit a response.

Backup Planners

Arose due to supply chain disruptions and stockouts, leading to flexibility and brand switching among consumers.

Financial Aficionados

Individuals whose financial literacy and wealth consciousness have increased significantly.

Self-love Seekers

A significant focus on DEI and self-acceptance has created new industries that cater to this demographic.