Decision making in marketing - Lectures

Decision making in Marketing
Theories Lecture 1

Subscriptions
Assume you would like to subscribe to ‘Time’ magazine
1. Internet-only subscription for 59 Euro
2. Print-and-internet subscription for 125 Euro

What would you choose if you had these options?
1. Internet-only 59 Euro
2. Print-only 125 Euro
3. Print-and-internet 125 Euro

3 options 2 options
Internet only ? 68%
Print only ? -
Internet and print ? 32%

Actual experiment à
3 options 2 options
Internet only 16% 68%
Print only 0% ?
Internet and print 84% 32%

Choices are made in a context
• Everything is relative, without context choices (in absolute terms) mean nothing
• We compare everything




Mental account
1) You are going to a movie. As you stand in line at the box office to buy your ticket,
you discover that you have dropped a € 12 bill on the Metro. You are disappointed, of
course, but would this affect your decision to buy the movie ticket?
Will you still pay for the movie ticket?

2) Let's say you are headed to a movie. As you are about to enter the theater, you
reach into your pocket and find to your dismay that you have lost your ticket. You
don't have a receipt, so if you still want to see the movie, you have to pay another €12
for a new ticket.
Will you pay again for the movie ticket?

88% in case 1 (2013:71%)
46 % in case 2 (2013: 58%)

Loosing money à different mental account
1