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CB 7

13
Decision Making
II: Alternative
Evaluation and
Choice

Copyright ©2016 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

1 Understand the difference between evaluative
criteria and determinant criteria
2 Comprehend how value affects the evaluation of
alternatives
3 Explain the importance of product
categorization in the evaluation of alternatives
process
4 Distinguish between compensatory and
noncompensatory rules that guide consumer
choice

Copyright ©2016 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly acce ssible website, in whole or in part. CB7 | CH13 2

Agree or Disagree? • Getting a hair style for under $10 is a very good thing. CB7 | CH13 3 . Copyright ©2016 Cengage Learning. All Rights Reserved. May not be scanned. in whole or in part. or posted to a publicly acce ssible website. copied or duplicated.

what you give (costs) Copyright ©2016 Cengage Learning. copied or duplicated. in whole or in part. CB7 | CH13 4 . Evaluation of Alternatives: Criteria • Evaluative criteria • Attributes that consumers consider when reviewing alternative solutions to a problem • Feature: Performance characteristic of an object • Benefit: Perceived favorable results derived from a particular feature • Value = what you get (benefits) . May not be scanned. All Rights Reserved. or posted to a publicly acce ssible website.

or posted to a publicly acce ssible website. All Rights Reserved. Apply • What are the features and benefits of an iPad? Copyright ©2016 Cengage Learning. copied or duplicated. CB7 | CH13 5 . May not be scanned. in whole or in part.

in whole or in part. All Rights Reserved. or posted to a publicly acce ssible website. Evaluation of Alternatives: Criteria • Determinant criteria • Criteria that are most carefully considered and directly related to the actual choice that is made • Depend largely on the situation in which a product is consumed • Includes products positioned by the marketers that apply to a specific situation Copyright ©2016 Cengage Learning. May not be scanned. CB7 | CH13 6 . copied or duplicated.

in whole or in part.Emotional. copied or duplicated.Pertain to functional or economic aspects associated with an alternative Copyright ©2016 Cengage Learning. or posted to a publicly acce ssible website. and subjective attributes or benefits that are associated with an alternative • Utilitarian criteria . symbolic. All Rights Reserved. May not be scanned. CB7 | CH13 7 . Value and Alternative Evaluation • Criteria used by consumers when evaluating a product • Hedonic criteria .

Positive mood states lead to positive evaluations . All Rights Reserved. Value and Alternative Evaluation • Affect-based evaluation: Process wherein consumers evaluate products based on the overall feeling that is evoked by the alternative • Influenced by emotions and mood states .Negative mood states lead to negative evaluations Copyright ©2016 Cengage Learning. May not be scanned. or posted to a publicly acce ssible website. in whole or in part. copied or duplicated. CB7 | CH13 8 .

Consumers integrate information about product attributes and make comparisons between products Copyright ©2016 Cengage Learning. All Rights Reserved. May not be scanned. copied or duplicated. Value and Alternative Evaluation • Attribute-based evaluation: Alternatives are evaluated across a set of attributes that are considered relevant to the purchase situation • Rational decision-making process assumes that: . CB7 | CH13 9 . in whole or in part. or posted to a publicly acce ssible website.

May not be scanned. or posted to a publicly acce ssible website.Abstract in nature and represent the highest level of categorization ▸ Beverages . in whole or in part. All Rights Reserved. copied or duplicated.Evaluations are more relevant and meaningful Copyright ©2016 Cengage Learning. CB7 | CH13 10 . Product categories • Mental representations of stored knowledge about groups of products • Levels • Superordinate .

or posted to a publicly acce ssible website. in whole or in part. CB7 | CH13 11 .Consumers examine the knowledge that they have stored about various options • Perceptual attributes: Visually apparent and easily recognizable .Referred to as search qualities because they can easily be evaluated prior to actual purchase Copyright ©2016 Cengage Learning. All Rights Reserved. copied or duplicated.Detailed in nature . Product categories • Subordinate . May not be scanned.

or posted to a publicly acce ssible website.Signal: Attribute that consumers use to infer something about another attribute Copyright ©2016 Cengage Learning. CB7 | CH13 12 . Product categories • Underlying attributes: Not readily apparent and can be learned only through experience or contact with the product . All Rights Reserved.Referred to as experience qualities as they are perceived only during consumption . in whole or in part. copied or duplicated. May not be scanned.

in whole or in part. Up for Discussion • Examples of signals? • When buying fruit • When buying a TV • When buying a car • When buying clothes Copyright ©2016 Cengage Learning. All Rights Reserved. May not be scanned. CB7 | CH13 13 . copied or duplicated. or posted to a publicly acce ssible website.

Criteria Selection Issues • What determines the type of evaluative criteria that consumers use? • Situational influences • product knowledge • social influences • expert opinions • online sources • marketing communications Copyright ©2016 Cengage Learning. in whole or in part. CB7 | CH13 14 . or posted to a publicly acce ssible website. May not be scanned. All Rights Reserved. copied or duplicated.

What factors influenced the criteria that you used to evaluate the product or service? Copyright ©2016 Cengage Learning. All Rights Reserved. May not be scanned. Up for Discussion • Consider a shopping experience. or posted to a publicly acce ssible website. in whole or in part. CB7 | CH13 15 . copied or duplicated.

copied or duplicated. CB7 | CH13 16 . Criteria Selection Issues • Are consumers accurate in their assessment of evaluative criteria? • Accuracy of a consumer’s evaluation depends on the quality of judgments • Presence of features • Feature levels • Benefits associated with features • Value associated with the benefit • How objects differ from each other Copyright ©2016 Cengage Learning. All Rights Reserved. or posted to a publicly acce ssible website. May not be scanned. in whole or in part.

or posted to a publicly acce ssible website. All Rights Reserved. copied or duplicated. CB7 | CH13 17 . in whole or in part. Criteria Selection Issues • How many criteria are necessary to evaluate alternatives effectively? • Research suggests that consumers can handle a high number of comparisons • Consumers are able to make good choices when considering a single attribute Copyright ©2016 Cengage Learning. May not be scanned.

copied or duplicated. CB7 | CH13 18 . Criteria Selection Issues • What if information is missing? • Consumers tend to: . All Rights Reserved. or posted to a publicly acce ssible website.Discount information that is missing for the option that performs better on the common Copyright ©2016 Cengage Learning. in whole or in part.Weigh the criteria common to alternatives in the evaluation . May not be scanned.

CB7 | CH13 19 . copied or duplicated.Perceptual mapping . May not be scanned. or posted to a publicly acce ssible website.Ask consumers through surveys .Conjoint analysis Copyright ©2016 Cengage Learning. in whole or in part. Criteria Selection Issues • How do marketers determine which criteria consumers use? • Techniques .Gather information from warranty registrations . All Rights Reserved.

All Rights Reserved.Compensating for the poor performance on one attribute by good performance on another Copyright ©2016 Cengage Learning. or posted to a publicly acce ssible website. CB7 | CH13 20 . May not be scanned. Consumer Choice: Decision Rules • Compensatory • Allows consumers to select products that perform poorly on one criterion by: . copied or duplicated. in whole or in part.

Options that do not meet the guidelines are eliminated from consideration Copyright ©2016 Cengage Learning. or posted to a publicly acce ssible website. May not be scanned. in whole or in part. All Rights Reserved. CB7 | CH13 21 . Consumer Choice: Decision Rules • Noncompensatory • Involves strict guidelines which are set prior to selection . copied or duplicated.

CB7 | CH13 22 . in whole or in part. or posted to a publicly acce ssible website. copied or duplicated. May not be scanned. All Rights Reserved. SUMMARY • Evaluative criteria views attributes that consumers consider when reviewing an alternative solution whereas determinant criteria is related to the actual choice made • Attitude and affect based evaluation is used to determine utilitarian and hedonic value • Product categories are mental representations of stored knowledge about groups of products • Compensatory rule helps in choice of poorly performing product by compensating its attribute with that of a good performing product • Noncompensatory rules involve strict pre-decided guideline for selection Copyright ©2016 Cengage Learning.