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Problem Recognition: The problem difference between an actual and ideal state.
Ideal state: The way we want things to be.
Actual state: Current state; the way things actually are.
Internal search: The process of recalling stored information from memory.
Consideration (or evoked set): The subset of top-of-mind brands evaluated when making a choice.
Diagnostic information: that which helps us discriminate among objects.
Salient attribute: Attribute that is “top of mind” or more important.
Attribute determinance: Attribute that is both salient and diagnostic.
Online processing: When a consumer is actively evaluating a brand as he/she views an ad for it.
Inhibition: The recall of one attribute inhibiting the recall of another.
Confirmation bias: Tendency to recall information that reinforces or confirms our overall beliefs
rather than contradicting them, thereby making our judgment or decision
more positive than it should be.
Ongoing search: A search that occurs regularly, regardless of whether the consumer is making a
choice.
External search: The process of collecting information from outside sources, for example, magazines,
dealers and ads.
Prepurchase search: A search for information that aids a specific acquisition decision.
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Judgment: Evaluation of an object or estimate of likelihood of an outcome or event.
Decision-making: Making a selection among options or courses of action.
Anchoring and adjustment process: Starting with an initial evaluation and adjusting it with additional
information.
Estimation of likelihood: Judgment how likely it is that something will occur.
Judgment of goodness/badness: Evaluating the desirability of something.
Imagery: Multisensory mental representation (image) of a stimulus or an event.
Mental accounting: Categorizing spending and saving decisions into “accounts” mentally designated
for specific consumption transactions, goals, or situations.
Emotional accounting: The intensity of positive or negative feelings associated with each mental
“account” for saving or spending.
Inept set: options that are unacceptable when making a decision.
Inert set: Options toward which consumers are indifferent.
Attraction effect: When the addition of an inferior brand to a consideration set increases the
attractiveness of the dominant brand.
Decision framing: The initial reference point or anchor in the decision process.
Cognitive decision making model: The process by which consumers combine items of information A
about attributes to reach a decision.
Affective decision-making model: The process by which consumers base their decision on feelings
and emotions.
Compensatory model: A mental cost-benefit analysis model in which negative features can be
compensated for by positive ones.
Noncompensatory model: A simple decision model in which negative information leads to rejection
of the option.
Cutoff level: For each attribute, the point at which brand is rejected with a non-compensatory model
Brand processing: Evaluating one brand at the time.
Multiattribute expectancy-value model: A type of brand-based compensatory model.
Conjunctive model: A non-compensatory model that sets minimum cut-offs to reject “bad” options.
Disjunctive model: A non-compensatory model that sets acceptable cut-offs to find options that are
“good”.
Attribute processing: Comparing brands, one attribute at a time.
Additive difference model: Compensatory model in which brands are compared by attribute, two
brands at a time.
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Lexicographic model: A non-compensatory model that compares brands by attitude, one at a time in
order of importance.
Elimination-by-aspects model: Similar to the lexicographic model but adds the notion of acceptable
cut-offs.
Endowment effect: When ownership increases the value of an item.
Affective forecasting: A prediction of how you will feel in the future.
Non-comparable decision: The process of making a decision about products or services from
different categories.
Alternative-based strategy: Making a non-comparable choice based on an overall evaluation.
Attribute-based strategy: Making a non-comparable choice by making abstract representations of
comparable attributes.
Extremeness aversion: Options that are extreme on some attributes are less attractive than those
with a moderate level of those attributes.
Compromise effect: When a brand gains share because it is an intermediate rather than an extreme
option.
Attribute balancing: Picking a brand because it scores equally well on certain attributes rather than
faring unequally on these attributes.
Metacognitive experiences: How the information is processed beyond the content of the decision.
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Base-rate information: How often an event really occurs on average.
Representativeness heuristic: Making a judgment by simply comparing a stimulus with the category
prototype or exemplar.
Law of small numbers: The expectation that information obtained from a small number of people
represents the larger population.
Availability heuristic: Basing judgments on events that are easier to recall.
Traditional hierarchy of effect: Sequential steps used in decision-making involving thinking then
feeling, then behaviour.
Low-effort hierarchy of effects: Sequence of thinking-behaving-feeling.
Satisfice: Finding a brand that satisfies a need even though the brand may not be the best brand.
Choice tactics: Simple rules of thumb used to make low-effort decisions.
Operant conditioning: A process of learning drive by the use of rewards to reinforce desired
behaviour and punishment to discourage objectionable behaviour.
Performance-related tactics: Tactics based on benefits, features, or evaluations of the brand.
Habit: A learned behaviour that involves regular performance of the same act repeatedly over time.
Behaviors are often performed unconsciously and may be difficult to discontinue.
Price-related tactics: Simplifying decision heuristics that are based on price.
Zone of acceptance: The acceptable range of prices for any purchase decision.
Deal-prone consumer: A consumer who is likely to be influenced by price.
Normative choice tactics: Low-elaboration decision-making that is based on others’ opinions.
Affect: Low-level feelings.
Brand familiarity: Easy recognition of a well-known brand.
Affect-related tactics: Tactics based on feelings.
Affect referral: A simple type of affective tactic whereby we simply remember our feelings for the
product or service.
Co-branding: An arrangement by which the two brands form a partnership to benefit from the power
of both.
Unity: When all the visual parts of design fit together.
Variety seeking: Trying something different.
Optimal stimulation level (OSL): The level of arousal that is most comfortable for an individual.
Sensation seeker: A consumer who actively looks for variety.
Vicarious exploration: Seeking information simply for stimulation.
Impulse purchase: An unexpected purchase based on a strong feeling.
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