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

AVAILABILITY HEURISTIC

REPRESENTATIVENESS HEURISTIC

ANCHORING AND ADJUSTMENT HEURISTIC

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 IMILAR 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

MENTAL ACCOUNTING REFERS TO THE WAY THAT CONSUMERS CODE,CATEGORIZE AND CALCULATE THEIR FINANCIAL OUTCOMES

SEGREGATE SMALL GAINS FROM LARGE

LOSSES

INTEGRATE SMALLER

LOSSES WITH LARGER GAINS

SEGREGATE GAINS

INTEGRATE

LOSSES

THALER’S CORE PRINCIPLES OF

MENTAL ACCOUNTING