Transcript Evaluating and selecting alternatives

Chapter 5 Evaluating and Selecting
Alternatives
• The nature of evaluative criteria
• Tools to measurement evaluative criteria
• Consumers’ individual judgments are not
necessarily accurate
• Role of surrogate indicators
• Types of decision rules consumers may apply
• Implications of evaluative criteria for marketing
strategy
Copyright  2004 McGraw-Hill Australia Pty Ltd
PPTs t/a Consumer Behaviour 4e by Neal, Quester, Hawkins
5–1
Evaluation of Alternatives
• Evaluation criteria
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price
brand name
country of origin
• Determinants of criteria
• Measurement of evaluation criteria
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identify important criteria
perception of each product for these
alternative performance of each product
Copyright  2004 McGraw-Hill Australia Pty Ltd
PPTs t/a Consumer Behaviour 4e by Neal, Quester, Hawkins
5–2
Evaluation of Alternatives (cont.)
• Determining the alternatives
• Evaluating alternatives
• Selecting a decision rule
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non-compensatory
compensatory
constructive
phased
• Marketing implications
Copyright  2004 McGraw-Hill Australia Pty Ltd
PPTs t/a Consumer Behaviour 4e by Neal, Quester, Hawkins
5–3
Consumer Decision Process
5–4
Alternative Evaluation and
Selection Process
5–5
The Measurement of
Evaluative Criteria
• Before a strategy is developed, the marketing
manager must know:
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Which evaluative criteria are used by the consumer
How the consumer perceives alternative products in terms
of each criterion
The relative importance of each criterion
Copyright  2004 McGraw-Hill Australia Pty Ltd
PPTs t/a Consumer Behaviour 4e by Neal, Quester, Hawkins
5–6
Determining which Evaluative
Criteria are Used
• Direct methods
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Asking consumers
Focus groups
Observation
• Indirect methods
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Projective techniques
Perceptual mapping
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PPTs t/a Consumer Behaviour 4e by Neal, Quester, Hawkins
5–7
Perceived Performance of
Six Television Sets
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Importance of Evaluative
Criteria to Buyers
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Perceptual Mapping of Soap Brands
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Uses of Perceptual Mapping
• We use this method to help us understand
consumers’ perceptions and the evaluative criteria
they use
• We can use this information to determine:
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How different brands are positioned according to
evaluative criteria
How the positions of brands change in response to
marketing efforts
How to position new products using evaluative criteria
Copyright  2004 McGraw-Hill Australia Pty Ltd
PPTs t/a Consumer Behaviour 4e by Neal, Quester, Hawkins
5–11
Determining Consumers’ Judgments
of Brand Performance in Terms of
Specific Evaluative Criteria
• Rank-ordering scales
• Sematic-differential scales
• Likert scales
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PPTs t/a Consumer Behaviour 4e by Neal, Quester, Hawkins
5–12
Determining the Relative Importance of
Evaluative Criteria
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Direct methods
– Constant sum
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Determining the Relative Importance
of Evaluative Criteria (cont.)
• Indirect methods
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Conjoint analysis
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A technique that provides data on the structure of
consumers’ preferences for product features and their
willingness to trade one feature for more of another.
Copyright  2004 McGraw-Hill Australia Pty Ltd
PPTs t/a Consumer Behaviour 4e by Neal, Quester, Hawkins
5–14
Application of Conjoint Analysis
5–15
Using Conjoint Analysis to Determine the
Importance of Evaluative Criteria
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Individual Judgment and
Evaluative Criteria
• The accuracy of individual judgments
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Use of a surrogate indicator
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Sensory discrimination
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Just-noticeable difference
Copyright  2004 McGraw-Hill Australia Pty Ltd
PPTs t/a Consumer Behaviour 4e by Neal, Quester, Hawkins
5–17
Use of Surrogate Indicators
• Consumers frequently use an observable attribute
of a product to indicate the performance of the
product on a less observable attribute
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Reliance depends on:
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Predictive value
Confidence value
Copyright  2004 McGraw-Hill Australia Pty Ltd
PPTs t/a Consumer Behaviour 4e by Neal, Quester, Hawkins
5–18
Use of Surrogate Indicators (cont.)
• Price
• Brand
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PPTs t/a Consumer Behaviour 4e by Neal, Quester, Hawkins
5–19
Use of Price to Indicate the Quality of Jewellery
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Evaluative Criteria, Individual
Judgments and Marketing Strategy
• Consumers use surrogate indicators
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Marketers can ensure that their products are superior for
these criteria by
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Making direct reference to them in ads
Using brand names
Using celebrity endorsement
Using country-of-origin
Copyright  2004 McGraw-Hill Australia Pty Ltd
PPTs t/a Consumer Behaviour 4e by Neal, Quester, Hawkins
5–21
Use of Celebrity Endorsement
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Use of Country of Origin
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Decision Rules Used by Consumers
• Conjunctive
• Disjunctive
• Elimination-by-aspects
• Lexicographic
• Compensatory
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PPTs t/a Consumer Behaviour 4e by Neal, Quester, Hawkins
5–24
Decision Rules Used by Consumers (cont.)
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Summary of the Decision Rules
1. Conjunctive
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brands that meet a minimum level on each evaluative
criterion
2. Disjunctive
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brands that meet a satisfactory level on any relevant
evaluative criteria
3. Elimination-by-aspects
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rank brands on evaluative criteria
select highest ranking brands until only one is left
4. Lexicographic
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rank brands on evaluative criteria importance
select the one that is highest on most important criteria
5. Compensatory
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Select brand that has the highest score over all the relevant
evaluative criteria
Copyright  2004 McGraw-Hill Australia Pty Ltd
PPTs t/a Consumer Behaviour 4e by Neal, Quester, Hawkins
5–26
Understanding Target Buyers’ Decision
Rules to Achieve Product Positioning
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Alternative Decision Rules and
Selection of a Television Set
5–28
Next Lecture…
Chapter 6:
Outlet Selection and Purchase
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PPTs t/a Consumer Behaviour 4e by Neal, Quester, Hawkins
5–29