MRKTNG 3000 1st Edition Lecture 7 Outline of Last Lecture I Non profit marketing II Targeting and non profits Outline of Current Lecture III C B Issues IV Correlational inferences a Associations b Country of origin effects V Heuristics and biases a Representativeness b Availability bias c 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 choice C 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 bad Germany 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 effort Ex Instead of comparing Mp3 players on all features on might use a hierarchal rule Representativeness Stereotyping bias in which prior probabilities are ignored Ex 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 available Ex 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 was broken 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 pricing