Chapter 13 Decision Making II: Alternative Evaluation and

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Transcript Chapter 13 Decision Making II: Alternative Evaluation and

Chapter 13 Decision Making II: Alternative Evaluation and Choice

© 2014 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

Learning Outcomes

• • Understand the difference between evaluative criteria and determinant criteria Comprehend how value affects the evaluation of alternatives © 2014 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

Learning Outcomes

• • Explain the importance of product categorization in the evaluation of alternatives process Distinguish between compensatory and noncompensatory rules that guide consumer choice © 2014 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

© 2014 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

Evaluative Criteria

• • • Attributes, features, or potential benefits that consumers consider when reviewing possible solutions to a problem Feature - Performance characteristic of an object Benefit - Perceived favorable result that is derived from the presence of a particular feature © 2014 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

© 2014 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

Determinant Criteria

Determinant criteria - Evaluative criteria that are related to the actual choice that is made © 2014 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

Value and Alternative Evaluation

• • • Hedonic criteria - Emotional, symbolic, and subjective attributes or benefits that are associated with an alternative Utilitarian criteria - Functional or economic aspects associated with an alternative Bounded rationality - Perfectly rational decisions are not always feasible due to constraints found in information processing © 2014 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

Types of Evaluation Processes

Affect-based evaluation

– Evaluate products based on the overall feeling that is evoked by the alternative •

Attribute-based evaluation

– Evaluate alternatives across a set of attributes that are considered relevant to the purchase situation © 2014 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

Product Categorization and Criteria Selection

• • Product categories - Mental representations of stored knowledge about groups of products Category levels – Superordinate – Subordinate © 2014 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

© 2014 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

Perceptual and Underlying ¬Attributes

Perceptual attributes Visually apparent and easily recognizable • Underlying attributes Readily apparent and can only be learned through experience with the product – Signal - Characteristic that allows a consumer to diagnose something distinctive about an alternative © 2014 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

Factors Determining Evaluative Criteria Used

Situational Influences Product Knowledge Expert Opinions Social Influences Online Sources Marketing Communications © 2014 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

Issues That Affect Consumer Judgments

• • • • • Just noticeable difference Attribute correlation Quality perceptions Brand name associations Consumer personality © 2014 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

© 2014 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

Consumer Choice: Decision Rules

Compensatory rules Allow consumers to select products that may perform poorly on one attribute by compensating for the poor performance by good performance on another attribute •

Noncompensatory

rules - Used, strict guidelines are set prior to selection, and any option that does not meet the specifications is eliminated from consideration © 2014 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

Noncompensatory Models

Conjunctive Rule Disjunctive Rule Lexicographic Rule Elimination-by-aspects Rule (EBA)

© 2014 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

© 2014 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

Retail Outlet Selection

• Several factors influence the choice of retail outlet including objective and subjective criteria such as: – Product variety – Store image – Location – Service – Product quality © 2014 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.