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Decision Rules

Decision Rules

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Published by Esther Tan

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Published by: Esther Tan on Jun 17, 2012
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05/13/2014

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Decision Rules

Schiffman & Kanuk Hawkins & Mothersbaugh

Compensatory Decision Rules

A type of decision rule in which a consumer evaluates each brand in terms of each relevant attribute and then selects the brand with the highest weighted score.

Copyright 2007 by Prentice Hall

Decision Rules for Attribute-Based Choices
Compensatory Decision Rule The compensatory 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.

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Decision Rules for Attribute-Based Choices
Compensatory Decision Rule Importance Score Price 30 25 10

Assume the following importance weights: Using this rule, Dell has the highest preference and would be chosen. The calculation for Dell is:

Weight Processor

Battery life
After-sale support Display quality Total

05
10 20 100

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Noncompensatory Decision Rules

A type of consumer decision rule by which positive evaluation of a brand attribute does not compensate for a negative evaluation of the same brand on some other attribute.

Copyright 2007 by Prentice Hall

Conjunctive Decision Rule

A noncompensatory decision rule in which consumers establish a minimally acceptable cutoff point for each attribute evaluated. Brands that fall below the cutoff point on any one attribute are eliminated from further consideration.

Copyright 2007 by Prentice Hall

Decision Rules for Attribute-Based Choices
Conjunctive 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: Price Weight Processor Battery life 3 4 3 1

After-sale support
Display quality

2
3

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Decision Rules for Attribute-Based Choices
Conjunctive Rule Lenovo, Acer, Dell, and Toshiba are eliminated because they fail to meet all the minimum standards.

Minimum 3 4 3 1 2 3

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Disjunctive Rule

A noncompensatory decision rule in which consumers establish a minimally acceptable cutoff point for each relevant product attribute.

Copyright 2007 by Prentice Hall

Decision Rules for Attribute-Based Choices
Disjunctive Rule:
Establishes a minimum required performance for each important attribute (often a high level). Price 5

Weight
Processor Battery life After-sale support Display quality

5
Not critical Not critical Not critical 5

All brands that meet or exceed the performance level for any key attribute are acceptable.
If minimum performance was:

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Decision Rules for Attribute-Based Choices
Disjunctive Rule Acer, Compaq, and Dell meet minimum for at least one important criterion and thus are acceptable.

Minimum 5 5 5

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Lexicographic Rule

A noncompensatory decision rule consumers first rank product attributes in terms of importance, then compare brands in terms of the attribute considered most important.

Copyright 2007 by Prentice Hall

Decision Rules for Attribute-Based Choices
Lexicographic Decision Rule

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.
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Affect Referral Decision Rule

A simplified decision rule by which consumers make a product choice on the basis of their previously established overall ratings of the brands considered, rather than on specific attributes.

Copyright 2007 by Prentice Hall

Decision Rules for Attribute-Based Choices
Elimination-by-Aspects Rule
First, evaluative criteria ranked in terms of importance
Rank Cutoff

Price
Weight Display quality Processor

1
2 3 4

3
4 4 3

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:

After-sale support
Battery life

5
6

3
3

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Decision Rules for Attribute-Based Choices
Elimination-by-Aspects Rule 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.

Minimum 3 4 3 3 3 4
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