Consumer Decision Making 2

13
Decision
Making II:
Alternative
Evaluation
and Choice
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 ©2017 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly
accessible website, in whole or in part. CB8 | CH13 2
EVALUATION OF ALTERNATIVES: CRITERIA
LO 1
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) - What you give (costs)
LO 1
Determinant Criteria
• Criteria that are most carefully
considered and directly related to the
actual choice that is made
• Sometimes called determinant
attributes
• Depend largely on the situation in
which a product is consumed
Marketers position their product based
on determinant criteria that apply to a
specific situation.
Example-Buying a car by a father for his
daughter (safety) or for himself (gas
mileage)
LO 2
Value and Alternative Evaluation
Criteria used by consumers when evaluating
a product:
• Hedonic criteria
- Emotional, symbolic, and subjective
attributes or benefits that are associated
with an alternative
- For example, the prestige that one associates with owning a luxury car
is a hedonic criterion.
• Utilitarian criteria
- Functional or economic aspects associated
with an alternative
- For example, safety of a Volvo is a utilitarian criterion.
LO 2
Exhibit 13.3 Utilitarian and Hedonic Criteria in

Advertising
accessible website, in whole or in part. CB 8 | CH13 7
AFFECT-BASED AND ATTRIBUTE-BASED EVALUATIONS
▪ Affect-based evaluation - Evaluative process wherein

consumers evaluate products based on the overall feeling that is
evoked by the alternative
“I’m not even sure why I bought this
sweater; I just liked it”
▪ Attribute-based evaluation - Evaluative process wherein

alternatives are evaluated across a set of attributes that are
considered relevant to the purchase situation
picture clarity
50-inch screen warranty
LO 3
Perceptual and Underlying Attributes
• Perceptual
• Visually apparent and easily recognizable
• Referred to as search qualities because they can easily be
evaluated prior to actual purchase
• Underlying
• Not readily apparent and can be learned only through
experience or contact with the product
• Referred to as experience qualities as they are perceived only
during consumption
• Signal: Attribute that consumers use to infer something
about another attribute
• Consumers tend to use information about color, feel, brand
name, price, and retailer reputation as signals about quality
Factors Influencing the Type of Criteria Used LO 3
When Evaluating Alternatives

▪ Situational influences (buying a gift [hedonic] vs
college formal [utilitarian]
▪ Product knowledge (a basketball player buying athletic
shoes)
▪ Expert opinions (brand experts; market mavens is a
trusted source)
▪ Social influences (friends, family, ref groups for
automobile)
▪ Online sources (consumerreports.com/choice.com.au)
▪ Marketing communications (Hall mark cards)
CONSUMER CHOICE: DECISION RULES
▪ Compensatory rules - Decision rule that allows consumers
to select products that may perform poorly on one criterion
by compensating for the poor performance by good
performance on another
It’s OK that this car isn’t very stylish; it gets

good mileage (km/l) . I’ll buy it
CONSUMER CHOICE: DECISION RULES
▪ Noncompensatory rules - Decision rule in which strict
guidelines are set prior to selection and any option that does
not meet the guidelines is eliminated from consideration
“I’ll only choose a car that gets good gas

mileage. I am not budging on that.”
LO 4
Categories of Noncompensatory Decision Rules
1. Conjunctive rule: Option selected must surpass a
minimum cutoff across all relevant attributes.
Example: The other day I was looking for waterproof
speakers to take on a river float. The product met all
requirements of loudness of sound, sound quality etc. but I
didn’t like the shape they were offering so did not purchase
that one.
2. Disjunctive rule: Option selected surpasses a relatively

high cutoff point on any attribute.
Example: buying a camera. If all requirements are equal on a
certain set of cameras you probably go for the best price or
offer.
LO 4
3. Lexicographic rule: Option selected is thought to perform

best on the most important attribute
Example: a consumer may rank the price of a car most
important, followed by fuel efficiency, braking, and
headroom. If two cars are equally satisfying in terms of price,
fuel efficiency, and braking, the car that has the most
headroom will be chosen. Lower ranked characteristics such
as color will not sway the decision.
LO 4
4. Elimination-by-aspects rule (EBA)

• Consumers:
- Set minimum cutoff points for the attributes
- Begin evaluating options by first looking at the most important
attribute and eliminating any option that does not meet the
cutoff point
- Move on to subsequent evaluations in order of importance
until only one option remains
Example: When a consumer is looking for a hybrid car that
consumer might first eliminate all conventional gasoline/diesel
powered vehicles. (Alternatively, accept all hybrids.) The
consumer might next eliminate all vehicles with crash test ratings
below 3 stars, etc.
LO 4
Examples of Noncompensatory Decision Rules
Conjunctive model: “Must have at least this much

of these.”
Disjunctive model: “Okay I am flexible; must have
either this or that.”
Lexicographic model: “I will take the best on the
most.”
Elimination by aspects: “At least this much on the
most.”
LO 4
Use of Decision Rules
• Noncompensatory rules are used in low-

involvement and high-involvement
purchase situations
• Consumers can combine decision rules in
order to arrive at a final solution
• Lexicographic rule is commonly used
• Comparisons are made mentally, without
the strict use of a mathematical formula
Discussion Questions
Q1: Using an example, describe evaluative and
determinant criteria.
Q2: What roles do features and benefits play in
the evaluation of alternatives?
Q3: Using an example, explain the relationship
between utilitarian and hedonic value and the
evaluation of alternatives
Q4: Using an example, explain Affect-based
evaluation.
Q5. Using an example, explain Attribute-Based
Evaluation. `

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13

1. Understand the difference between

Exhibit 13.3 Utilitarian and Hedonic Criteria in

▪ Affect-based evaluation - Evaluative process wherein

▪ Attribute-based evaluation - Evaluative process wherein

When Evaluating Alternatives

It’s OK that this car isn’t very stylish; it gets

“I’ll only choose a car that gets good gas

2. Disjunctive rule: Option selected surpasses a relatively

3. Lexicographic rule: Option selected is thought to perform

4. Elimination-by-aspects rule (EBA)

Conjunctive model: “Must have at least this much

• Noncompensatory rules are used in low-

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