Decision Making II: Alternative Evaluation and Choice: Purchase Is Seeking!

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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 accessible website, in whole or in part. CB7 | CH3 2
PURCHASE IS VALUE SEEKING!
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Let’s Revisit Decision Making
• Need recognition
I am bored. Should go
shopping

What are you
wearing for
• Need Recognition prom?
Hmm…
Shopping value Context

• Time
• Utilitarian vs Hedonic • Place
• Conditions
I completed
I love my shopping
touching list today
the clothes
Types of decision making approaches
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• Search
• Internal vs External
• Ongoing vs Prepurchase
This type of
dress always fits
me
Types of shopping activities

• Acquisitional
Shopping

• Epistemic
Shopping
Style?
Price?
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• Experiential
Welcome
Shopping my
princess!

• Impulsive
Shopping
OMG!
Must
buy
Life is becoming
harder!
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PURCHASE IS ALSO PROBLEM
SOLVING!
Which one would you buy?
• Why?
Now try selling this to your friend next to you
• Can you do that?
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When people consider options, it is within a
category
£515
£515
Category level
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Strategic Implications
of Product Categorization
• Position a product
• Identify competitors
• Create an exemplar product
• Locate products in a store
Copyright © 2013 Pearson Education, Inc.

publishing as Prentice Hall 8-25
Evaluation of Alternatives: Criteria
• Evaluative
• 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)
Distinguish feature and benefit?
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What do we consider when choosing which
brand of bubble tea to buy?
• Now let's group these criteria!
I am hungry
& thirsty, so
I drink
Value and Alternative Evaluation
• Hedonic criteria
- Emotional, symbolic, and subjective attributes
or benefits that are associated with an
alternative
• Utilitarian criteria
- Pertain to functional or economic aspects
associated with an alternative
Affect vs Attribute based
FINAL CHOICE OF PRODUCT BASED
ON HOW PEOPLE EVALUATE THEM
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“I’m not even sure why I
bought this sweater; I
just liked it”
Affect-based evaluation
Evaluate products based on
the overall feeling that is
evoked by the alternative.
Attribute-based evaluation
Evaluate alternatives across a set
picture clarity of attributes that are considered
relevant to the purchase
50‐inch screen situation.
warranty
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Multi-attribute Model
Evaluate Service Performance based on priority & need.
Influenced by level of customer’s involvement
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© Pearson Education South Asia Pte Ltd 2013. All rights reserved
Not all evaluations

are straight
forward
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Evaluation of Alternatives: Criteria
• Determinant
• 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
Example of a Determinant Criterion
When the
MacBook Air
was introduced,
the product
was promoted
largely on
thinness and
portability.
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No. Of criteria required
Activity 2: Think about criteria
• What do you look for in a diet soda drink/
beverage?
Can you use the previous criteria to weight

these 2 choices?
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What if information is missing to complete
your choice?
• Compensatory
- Weigh the criteria common to alternatives
in the evaluation
- Discount information that is missing for
the option that performs better
Criteria Selection Issues
• How do marketers determine which criteria
consumers use?
• Techniques
- Ask consumers through surveys
- Gather information from warranty
registrations
- Perceptual mapping
- Conjoint analysis
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THANK YOU!
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1

1 Understand the difference between evaluative

Let’s Revisit Decision Making

Shopping value Context

Types of shopping activities

Types of shopping activities

Types of shopping activities

Which one would you buy?

Now try selling this to your friend next to you

Copyright © 2013 Pearson Education, Inc.

Evaluation of Alternatives: Criteria

Distinguish feature and benefit?

Value and Alternative Evaluation

Not all evaluations

Activity 2: Think about criteria

Can you use the previous criteria to weight

Criteria Selection Issues

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