MRKTNG 3000 1st Edition Lecture 7Outline of Last LectureI. Non-profit marketingII. Targeting and non-profits Outline of Current Lecture III. C.B. IssuesIV. Correlational inferencesa. Associationsb. Country of origin effectsV. Heuristics and biases a. Representativenessb. Availability biasc. Anchor and adjustment Current Lecture Are there any extensive decisions that aren’t for high-priced offerings? Evolution of alternatives: attribute sets Universal setretrieval set evoked setchoiceC.B. Issues- John Payne Correlational inferences--Associations (positives or negative) between two attributes-Positive association (better look of a car, better its performance)These notes represent a detailed interpretation of the professor’s lecture. GradeBuddy is best used as a supplement to your own notes, not as a substitute.-Negative association (higher cost of a car (negative), better its performance (positive))Country of origin effects:If something is produced in a certain country it must be good or badGermany makes good, beer, automobiles, etc.Thee good (Swiss watches, Japanese electronics, Brazilian soccer, Russian vodka/hockey)The bad (Finish/English food, Chinese toys, etc.)Heuristics and biases:Heuristics- used to ease cognitive effortEx: Instead of comparing Mp3 players on all features, on might use a hierarchal rule Representativeness:-Stereotyping bias in which prior probabilities are ignoredEx- Ad shows mom fixing Ovaltine for kids who chorus “more Ovaltine please”. Bias occurs if viewers believe “Mothers care about the health of their kids, so Ovaltine must be healthy”.-Ovaltine actually isn’t good for kids, lots of sugar Availability bias:-Tendency to use info that is most readily availableEx- Consumers considering fast food or beer alternatives that have been recently advertised-Consumers consider purchasing a home security system after a coworker reveals her home wasbroken into Anchor and adjustment:-First information becomes basis (anchor) from which we adjust based on new info-Often we don’t adjust enough-Most common example in marketing:-Using retail/sticker price as an anchor for determining what is a good value-Sales-Infomercial