The Psychology of Decision Making
The Psychology of Making Decisions
There is a lot that goes into human decision making, whether it be big or small. One example is deciding on a healthcare plan. There is alot to take into consideration, like how much you go to the doctors, what doctors will be included in your network. Nayya uses data science and artificial intelligence to select the plan that best fits your needs. Nayya’s software does all the heavy lifting for you when it comes to making decisions. It will even recommend a provider to you based on important factors. But how do humans make decisions? Here are three models.
The Single Feature Model
This method involves making a decision based on only one feature. Features are often attributes like cost, longevity, or reputation. This model is best suited for situations where the decision is pretty simple or if there isn’t a lot of time.
The Additive Feature Model
This method involves a little bit more math. This requires the person to take all of the important features of each possible choice and then evaluate each option. Like if you were buying a car, you could rank each option on their speed, mileage, safety, etc and then see which one has the highest rank. Because there is a lot that goes into this, this method is best for complex decisions with a more generous time limit.
The Elimination by Aspects Model
This is a model when the consumer will focus on one feature at a time. For each feature, they will go through their product options. Each product that does not meet the minimum “score” for that feature is taken out of the running. With this model, you will inevitably arrive at one choice. When using Elimination by Aspects, you start with the feature that you perceive to be the most important.
These models are great for most decisions, however when there is an amount of risk or uncertainty involved, humans turn towards other methods. One of them is referring to information they have already been exposed to. This is what happens when people choose healthcare plans. People will use heuristics, which are mental shortcuts that allow people to make decisions. People will use the availability heuristic, which is accessing the information that has been most prominent and readily available in their life or the representative heuristic, which is where you have a prototype and you make decisions that will fit that prototype.
A reminder that not all decisions have to be hard! Use Nayya to make decisions regarding healthcare quickly and easily.