Ch016 alternative evaluation and selection

1. PART IV: CONSUMER DECISION PROCESSPART IV: CONSUMER DECISION PROCESS
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2. CHAPTERCHAPTER1616
ALTERNATIVE ALTERNATIVE
EVALUATION EVALUATION
AND AND
SELECTIONSELECTION
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3. Consumer Behavior In The News…Consumer Behavior In The News…
Amazon is coming up with simpler packaging that Amazon is coming up with simpler packaging that
uses less plastic and wire.uses less plastic and wire.
This makes it cheaper for Amazon, better for the This makes it cheaper for Amazon, better for the
environment, and easier for consumers to open.environment, and easier for consumers to open.
Which are the features and which are the benefits? Which are the features and which are the benefits?
Features:Features:
Benefits:Benefits:
Which will sell better?Which will sell better?
Source: T. Iezzi, “Amazon One-Ups Santa Claus with Frustration-Free Packaging,” Advertising Age, November 17, 2008, p. 17
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4. Consumer Behavior In The News…Consumer Behavior In The News…
Which are the features and which are the benefits? Which are the features and which are the benefits?
Features:Features: less plastic and wire less plastic and wire
Benefits: Benefits: cheaper, green, easier to opencheaper, green, easier to open
Which will sell better?Which will sell better?
If you said Benefits you are correct!If you said Benefits you are correct!
Direct consumer benefits key…green is indirect Direct consumer benefits key…green is indirect
and many don’t care.and many don’t care.
Has been labeled “Frustration-Free Packaging” Has been labeled “Frustration-Free Packaging”
to emphasize the direct consumer benefit.to emphasize the direct consumer benefit.
Source: T. Iezzi, “Amazon One-Ups Santa Claus with Frustration-Free Packaging,” Advertising Age, November 17, 2008, p. 17
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5. Alternative Evaluation and SelectionAlternative Evaluation and Selection
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6. How Consumers Make ChoicesHow Consumers Make Choices
In reality, all consumers have bounded rationality bounded rationality
A limited capacity for processing information.
Consumers also often have goals that are different from, or
in addition to, selecting the optimal alternative.
A metagoalmetagoal refers to the general nature of the
outcome being sought.
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7. How Consumers Make ChoicesHow Consumers Make Choices
Metagoals in Decision MakingMetagoals in Decision Making
• Maximize the accuracy of the decisionMaximize the accuracy of the decision
• Minimize the cognitive effort required for the decisionMinimize the cognitive effort required for the decision
• Minimize the experience of negative emotionMinimize the experience of negative emotion
• Maximize the ease of justifying the decisionMaximize the ease of justifying the decision
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8. How Consumers Make ChoicesHow Consumers Make Choices
1.1.Affective ChoiceAffective Choice
2.2.Attitude-Based ChoiceAttitude-Based Choice
3.3.Attribute-Based ChoiceAttribute-Based Choice
Three types of consumer choice processes:Three types of consumer choice processes:
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9. How Consumers Make ChoicesHow Consumers Make Choices
Affective choices tend to be more holistic. Brand not
decomposed into distinct components for separate evaluation.
Evaluations generally focus on how they will make the user feel
as they are used.
Affective ChoiceAffective Choice
Choices are often based
primarily on the immediate
emotional response to the
product or service.
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10. How Consumers Make ChoicesHow Consumers Make Choices
Attribute- versus Attitude-Based Choice ProcessesAttribute- versus Attitude-Based Choice Processes
Attribute-Based Choice Attribute-Based Choice
•Requires the knowledge of
specific attributes at the
time the choice is made,
and it involves attribute-by-
attribute comparisons
across brands.
Attitude-Based Choice Attitude-Based Choice
•Involves the use of general
attitudes, summary
impressions, intuitions, or
heuristics; no attribute-by-
attribute comparisons are
made at the time of choice.
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11. How Consumers Make ChoicesHow Consumers Make Choices
The Eton Radio ad
provides consumers
all the great features of
its radio and uses the
tag line “Tune in: to
independence.”
This is an example of
attribute-based
decision making.
©2008 Eaton Corporation. All rights reserved.©2008 Eaton Corporation. All rights reserved.
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12. Evaluative CriteriaEvaluative Criteria
Evaluative criteria are typically product features or
attributes associated with either benefits desired by
customers or the costs they must incur.
Evaluative criteria can differ in
 type
 number
 importance
Nature of Evaluative CriteriaNature of Evaluative Criteria
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13. Evaluative CriteriaEvaluative Criteria
Measurement of Evaluative CriteriaMeasurement of Evaluative Criteria
Involves a determination of:
The Evaluative Criteria Used
Judgments of Brand Performance on Specific Criteria
The Relative Importance of Evaluative Criteria
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14. Evaluative CriteriaEvaluative Criteria
1.1.DirectDirect methods include asking consumers what criteria
they use in a particular purchase.
2.2.IndirectIndirect techniques assume consumers will not or cannot
state their evaluative criteria.
•Projective techniquesProjective techniques - allow the respondent to
indicate the criteria someone else might use.
•Perceptual mappingPerceptual mapping - researcher uses judgment to
determine dimensions underlying consumer
evaluations of brand similarity.
Determination of Which Evaluative Criteria Are UsedDetermination of Which Evaluative Criteria Are Used
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15. Evaluative CriteriaEvaluative Criteria
Perceptual Mapping of Beer Brand PerceptionPerceptual Mapping of Beer Brand Perception
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16. Evaluative CriteriaEvaluative Criteria
Measuring consumer judgments of brand performance on
specific attributes can include:
Rank ordering scales
Semantic Differential Scales
Likert Scales
Determination of Consumers’ Judgments of BrandDetermination of Consumers’ Judgments of Brand
Performance on Specific Evaluative CriteriaPerformance on Specific Evaluative Criteria
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17. Evaluative CriteriaEvaluative Criteria
The importance assigned to evaluative criteria can be
measured either by directdirect or by indirectindirect methods.
The constant sum scale is the most common direct
method.
Conjoint Analysis is the most common indirect
method.
Determination of the Relative Importance of Determination of the Relative Importance of
Evaluative CriteriaEvaluative Criteria
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18. Individual Judgment and Evaluative Individual Judgment and Evaluative
CriteriaCriteria
Accuracy of Individual JudgmentsAccuracy of Individual Judgments
Use of Surrogate IndicatorsUse of Surrogate Indicators
The Relative Importance and Influence of The Relative Importance and Influence of
Evaluative CriteriaEvaluative Criteria
Evaluative Criteria, Individual Judgments, and Evaluative Criteria, Individual Judgments, and
Marketing StrategyMarketing Strategy
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19. Decision Rules for Attribute-Based Decision Rules for Attribute-Based
ChoicesChoices
Conjunctive RuleConjunctive Rule
Disjunctive RuleDisjunctive Rule
Elimination-by-Aspects RuleElimination-by-Aspects Rule
Lexicographic RuleLexicographic Rule
Compensatory RuleCompensatory Rule
Non-compensatory
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20. Decision Rules for Attribute-Based Decision Rules for Attribute-Based
ChoicesChoices
Conjunctive RuleConjunctive Rule:
Establishes minimum required
performance for each evaluative
criterion.
Selects the first (or all) brand(s) that
meet or exceed these minimum
standards.
If minimum performance was:
PricePrice 33
WeightWeight 44
ProcessorProcessor 33
Battery lifeBattery life 11
After-sale supportAfter-sale support22
Display qualityDisplay quality 33
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21. Decision Rules for Attribute-Based Decision Rules for Attribute-Based
ChoicesChoices
Lenovo, Acer, Dell, and Toshiba are eliminated
because they fail to meet all the minimum standards.
Conjunctive RuleConjunctive Rule
MinimumMinimum
33
44
33
11
22
33
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22. Decision Rules for Attribute-Based Decision Rules for Attribute-Based
ChoicesChoices
Disjunctive RuleDisjunctive Rule:
Establishes a minimum required
performance for each important
attribute (often a high level).
All brands that meet or exceed the
performance level for any key
attribute are acceptable.
If minimum performance was:
PricePrice 55
WeightWeight 55
ProcessorProcessor Not criticalNot critical
Battery lifeBattery life Not criticalNot critical
After-sale supportAfter-sale supportNot criticalNot critical
Display qualityDisplay quality55
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23. Decision Rules for Attribute-Based Decision Rules for Attribute-Based
ChoicesChoices
Acer, Compaq, and Dell meet minimum for at least
one important criterion and thus are acceptable.
Disjunctive RuleDisjunctive Rule
MinimumMinimum
55
55
--
--
--
55
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24. Decision Rules for Attribute-Based Decision Rules for Attribute-Based
ChoicesChoices
Elimination-by-Aspects RuleElimination-by-Aspects Rule
First, evaluative criteria ranked in
terms of importance
Second, cutoff point for each
criterion is established.
Finally (in order of attribute
importance) brands are
eliminated if they fail to meet or
exceed the cutoff.
If rank and cutoff were:
RankRank CutoffCutoff
PricePrice 11 33
WeightWeight 22 44
Display qualityDisplay quality 33 44
ProcessorProcessor 44 33
After-sale After-sale
supportsupport
55 33
Battery lifeBattery life 66 33
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25. Decision Rules for Attribute-Based Decision Rules for Attribute-Based
ChoicesChoices
Step 1: Price eliminates Lenovo and Toshiba
Step 2: Weight eliminates Acer
Step 3: Of remaining brands (HP, Compaq, Dell),
only Dell meets or exceeds display quality minimum.
Elimination-by-Aspects RuleElimination-by-Aspects Rule
MinimumMinimum
33
44
33
33
33
44
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26. Decision Rules for Attribute-Based Decision Rules for Attribute-Based
ChoicesChoices
Consumer ranks the criteria in order of importance.
Then selects brand that performs best on the most important
attribute.
If two or more brands tie, they are evaluated on the second
most important attribute. This continues through the
attributes until one brand outperforms the others.
Acer would be chosen because it performs best on Price, our
consumer’s most important attribute.
Lexicographic Decision RuleLexicographic Decision Rule
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27. Decision Rules for Attribute-Based Decision Rules for Attribute-Based
ChoicesChoices
The compensatory decision rulecompensatory decision rule states that the brand
that rates highest on the sum of the consumer’s judgments
of the relevant evaluative criteria will be chosen.
Compensatory Decision RuleCompensatory Decision Rule
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28. Decision Rules for Attribute-Based Decision Rules for Attribute-Based
ChoicesChoices
Compensatory Decision RuleCompensatory Decision Rule
Importance ScoreImportance Score
PricePrice 3030
WeightWeight 2525
ProcessorProcessor 1010
Battery lifeBattery life 0505
After-sale supportAfter-sale support 1010
Display qualityDisplay quality 2020
TotalTotal 100100
Assume the following
importance weights:
Using this rule, Dell has the
highest preference and
would be chosen.
The calculation for Dell is:
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29. Decision Rules for Attribute-Based Decision Rules for Attribute-Based
ChoicesChoices
Summary of Resulting Choices from Different Summary of Resulting Choices from Different
Decision RulesDecision Rules
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