IN WHAT WAYS DO

CONSUMERS STRAY

FROM A

DELIBERATIVE,RATIONAL

DECISION MAKING

PROCESS?

CONSUMERS DON’T

ALWAYS MAKE

INFORMED OR

RATIONAL

CHOICES

SOMETIMES,

THEY DON’T

GET THE

WHOLE

PICTURE

BECAUSE OF

LOW

INVOLVEMENT

IN THE

DECISION

MAKING

PROCESS

SOMETIMES CONSUMERS

MAKE THE CHOICE OF

SWITCHING BRANDS SIMPLY

BECAUSE THEY SEEK

VARIETY

DECISION HEURISTICS ARE USED BY

CONSUMERS BECAUSE OF THEIR

DEVIATIONS FROM RATIONAL

BEHAVIOUR

AVAILABILTY HEURISTIC

CONSUMERS MAKE THEIR PREDICTIONS BASED ON THE

QUICKNESS AND EASE WITH WHICH A PARTICULAR EXAMPLE

OF AN OUTCOME COMES TO MIND

REPRESENTATIVENESS

HEURISTIC

CONSUMERS BASE THEIR PREDICTIONS ON HOW

REPRESENTATIVE OR SIMILAR THE OUTCOME IS

TO OTHER EXAMPLES

ANCHORING AND ADJUSTMENT

HEURISTIC

CONSUMERS ARRIVE AT AN INITIAL

JUDGEMENT AND THEN ADJUST IT

ACCORDING TO ADDITIONAL

INFORMATION

DECISION FRAMING

IS THE MANNER IN

WHICH CHOICES ARE

PRESENTED TO AND

SEEN BY DECISION

MAKERS

SEGREGATE SMALL GAINS FROM LARGE

LOSSES

INTEGRATE SMALLER LOSSES

WITH LARGER GAINS

SEGREGATE GAINS

INTEGRATE LOSSES

THALER’S CORE

PRINCIPLES OF

MENTAL

ACCOUNTING