Abstract

The system of thought between rational systems and experience systems is inherent in each individual and produces different decisions. Thinking using logic tends to be used by almost every individual, but cognitive limitations make the individual simplify complex thinking to make practical decisions. This study aims to examine more in dual process on decision home buyers according to dual motives based on demographics and life cycle. Data collection was done by distributing questionnaires to selective home buyers of 235 buyers. Survey instruments include demographic and family life cycle variables. The dual process measurements using Rational-Experiential Inventory (REI-40) are designed to test individual preferences for two decision making, such as cognitive styles (rationality) and intuition (experience) using Likert scales. The results show that dual process cannot be distinguished based on dual motives. However, demographic variables such as gender, age, education, and family life cycle showed the difference in the dual process.

Highlights

  • A rational person is assumed to be a person who obeys the rules, but rationality has its limits

  • Every question demands each respondent to reflect on his own ability or feeling regarding rational or experiential decision-making activity as such: Rational ability refers to the ability to think logically and analytically (which is “I have a logical mind” Rational involvement refers to the dependence and pleasure felt when using logical and analytical thinking Experiential ability refers to the ability felt regarding intuitive impressions and feelings. which is trust my feeling”) Experiential involvement refers to the dependence and pleasure felt when using feelings and intuitions

  • Dual process study using Rational-Experiential Inventory (REI-40) as information processing measuring instrument in individual has been applied to various population such as scholars (Epstein et al, 1996), paramedic (Jensen, et al, 2013), prospective jury (Gunnell & Ceci, 2010), cardiologist (Sladek et al, 2008), and emergency room doctors (Calder, et al, 2012)

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Summary

Introduction

A rational person is assumed to be a person who obeys the rules, but rationality has its limits. The second perspective states that humans draw conclusions based on logical deductions, cognitive capabilities, knowledge, and limited time so a simple psychological mechanism is called pragmatic heuristic (Gigerenzer & Goldstein, 1996). Both groups, rational cognitive versus experience and the pragmatic heuristic is still in debate, which is the consequence of automatic intuitive response or the consequence of a certain cognitive of a person. Individual differences such as causal reasoning, cognitive capability, cognitive reflection, numerical measure, and rational and intuitive thinking styles have a great impact on decision or bias. Shiloh, Salton, & Sharabi (2002) found that normative response correlates positively with rational thinking style, and negatively with experimental intuitive thinking style

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