Antecedents of Effective Decision Making: A Cognitive Approach

Decision-making effectiveness has been associated with how well managers adapt their cognitive style to task requirements. In this paper, theories regarding decision-making under uncertainty and the use of judgment and intuition are reviewed and integrated. Cognitive Continuum Theory (CCT), positing a one-dimensional continuum of cognitive styles anchored by intuition and analysis, is extended: Four fundamental decision styles are identified and evaluated for their relative effectiveness under various task conditions. Propositions are developed with respect to the relationships between decision task characteristics and the likelihood of using two cognitive systems, and with respect to potential moderators of decision-making effectiveness. The propositions are integrated into a comprehensive theoretical model. Major contributions of the study are a conceptual clarification of the distinctions between intuition, heuristics and bounded rationality on the one hand, and the assessment of the scope of various cognitive styles as well as the identification of moderators of their effectiveness on the other. Research implications and some suggestions for managerial practice are provided.Economics ;

Consumers’ Trade-Off Between Relationship, Service Package, And Price: An Empirical Study In The Car Industry

The prime objective of our study is to assess whether consumer segments based on relational aspects, service aspects, or price aspects have different preferences concerning these three key decision making variables when buying a car. In addition, we assessed consumer segments resulting from simultaneously incorporating relationships, service package, and price. We investigated a large sample of Mitsubishi drivers in the Netherlands emphasizing consumers’ trade-off between dealer relationship, service package and price. Conjoint analysis showed that dealer relationships (as opposed to price) represent a very important decision making variable when buying a car and consumer preferences concerning relationships provide a useful instrument for segmenting markets. Cluster analyses on the basis of three aspects simultaneously revealed that some consumers do value relationships, while others emphasize the service package in their purchase, both opposed to the third segment that is most probably not inclined to be loyal to a car dealer at all.Our study clearly indicates that different consumer segments can be distinguished on the basis of preferences for relationships and service packages rather than on the basis of price. This knowledge enables car dealers to use their resources more effectively.marketing ;

Boost Customer Loyalty With Online Support: The Case Of Mobile Telecomms Providers

The paper explores the effect of customer satisfaction with online supporting services on loyalty to providers of an offline core service. Supporting services are provided to customers before, during or after the purchase of a tangible or intangible core product, and have the purpose of enhancing or facilitating the use of this product. The Internet has the potential to dominate all other marketing channels when it comes to the interactive and personalized communication that is considered quintessential for supporting services. Our study shows that the quality of online supporting services powerfully affects satisfaction with the provider and customer loyalty through its effect on online value and enjoyment. Managerial implications are provided.marketing ;