Consumer Decision Making and Psychology

These flashcards cover key concepts related to consumer decision-making, psychological factors affecting choices, and decision-making models.

Neuroeconomics

A field that combines neuroscience, economics, and psychology to study human behavior and decision making.

Functional Magnetic Resonance Imaging (fMRI)

A brain-scanning technology used to observe brain activity and predict purchasing decisions.

Framing Effects

The influences on consumer choices based on how information is presented, particularly as a loss or gain.

Risk-averse

A tendency to prefer avoiding losses over acquiring equivalent gains.

Risk-seeking

A tendency to prefer options that involve a chance of loss over certain outcomes when faced with potential losses.

Expected Utility Theory

A theory explaining how individuals make decisions under uncertainty, aiming to maximize their expected utility.

Prospect Theory

A behavioral economic theory that describes how people choose between probabilistic alternatives that involve risk.

Compensatory Decision Rules

Decision-making models where a positive attribute can offset a negative one.

Non-compensatory Decision Rules

Models where a low score on one attribute cannot be compensated by high scores on others.

Heuristics

Mental shortcuts or rules of thumb that simplify decision-making processes.

Consumer Inertia

The tendency to buy a brand out of habit rather than through the intention to switch.

Brand Loyalty

The commitment of consumers to repurchase or continue using the same brand.

Evaluative Criteria

The dimensions used by consumers to judge the merits of competing options.

Determinant Attributes

Features that are used to differentiate among choices.

Collaborative Filtering

A recommendation system that learns from past user behavior to suggest new purchases.