ALTERNATIVE

EVALUATION
Alternative Evaluation
The stage in the buying decision
process in which the buyer uses
information gathered to make a final
choice between the products in the
evoked set.
Consumer benefits and evaluative criteria
Consumer decision rules and heuristics
Planned versus unplanned purchasing
Outlet selection
Outlet image
Consumer choice and shopping behavior
Consumer Evaluation Sets
•Universal set - all product classes and/or all brand alternatives
(and outlets) with reasonable marketplace access whether the
consumer is aware of them or not

•Retrieval set - subset of universal set that consumers can bring

up from memory

•Consideration set - subset of retrieval set from which the

consumer intends to make a selection
Evaluative Criteria
Evaluative criteria - the means by which consumers
compare product classes, brands, vendors, etc.

•Tangible - benefits based on such things as price,

color, size, shape, performance
•Intangible - benefits based on such things as brand
image, ownership feelings
Alternative Evaluation
-The process through which we compare and contrast different
solutions to the same marketplace problem.

It is the third step in the consumer decision-making process:

• Problem recognition
• Information Search
• Alternative evaluation
• Choice
• Outcomes
Evaluative Criteria
- Typically, consumers use from four to six criteria.
- The more important the purchase and/or the
greater experience a consumer has with the product
class, the greater the number of criteria used.
- Criteria may be used in combination.
- The more important the decision, the fewer are the
acceptable alternatives.
What Is the Relative Importance of Each Criterion?

- Importance = salience
- Evaluative criteria salience varies by product,
situation, and person
- Determining relative importance – the “100 points”
rule; ask consumers to distribute 100 “importance
points” among criteria based on relative importance
(see Exhibit 3-1)
Country of Origin, Price, and Brand, as Evaluative Criteria
Country of origin is used to signal product quality
Use of price as criterion varies across product categories:
-Acceptable price range is determined by past purchases;
perception of benefits vs. costs indicates value; and the
buying situation.
Brand reputation
-Brand may be viewed as an indicator of quality and/or
consistency of satisfaction - lessening risk.
Consumer Decision Rules
- How consumers evaluate and choose products and services in different
buying situations.
- Rules are used consciously or unconsciously
- Three types of rules:

•Noncompensatory rule - one in which the weaknesses of an alternative are not

offset by its strengths (not designed to find “winners”)
•Compensatory rule - allowing for trade-offs among strengths and weaknesses
(find “winners”)
•Decision heuristics - these are rules of thumb or short cuts that allow quick
decision-making.
Noncompensatory Rules
•Disjunctive - decide which criteria are determinant (or not) and then establish
a minimum score for each one. Meet minimum “in” do not “out”

•Conjunctive - consider all criteria as determinant and then establish a

minimum acceptable score for each one. Meet all minima “in” otherwise “out”

•Lexicographic - rank each of the evaluative criteria in order of importance;

compare alternatives on most important with highest score winning; if tie for
high score those tied evaluated on second most important criterion, etc., until
“winner” is found.
Compensatory Rules

•Simple additive - total scores on all evaluative criteria for

each alternative and the highest score wins (assumes all
criteria of equal importance).

•Weighted additive - assign relative weight to each criterion

based on perceived importance and then multiply the score
by the relative weight to arrive at a weighted score, sum
scores, highest weighted score wins.
Decision Heuristics
- Mental rules of thumb or shortcuts that help consumers
reach decisions quickly and efficiently.

Examples:
•Price - “the higher the price the better the quality”
•Brand reputation - if it’s brand X, it must be good (or bad)
•Key product features - if a used car has a clean interior, a
buyer may also infer a mechanically sound vehicle.
•Market beliefs
Choice – Purchase Situations

Four types of purchase situation:

- Specifically planned
- Generally planned
- Substitute
- Unplanned
Planned Purchasing Behavior

•Understanding “buying intention” is key to predicting and

potentially influencing planned behavior
•Measuring purchasing intention can be done:
- Measures of intention may not provide accurate results
since situational influences change
- The method of questioning may be flawed itself. (A
solution: “Yes” or “No” about doing something; then
determine probability of doing this)
Intervention of Planned Purchases

•Intervening variables - changes that may have an impact on

the actual purchase behavior
- Financial status, employment situation, family or
household size, weather, etc.
- Deliberation: the longer we put off a purchase the higher
the likelihood that either the purchase will not be made or
the choice will change.
Unplanned Purchasing Behavior
Four types of unplanned purchases
- Pure impulse: those that are bought for the sake of novelty
- Reminder impulse: are routine purchases, albeit
unanticipated.
- Suggestion impulse: when a product (not previously seen)
stimulates immediate need recognition
- Planned impulse: responding to a special incentive to buy
an item considered in the past but not selected
Point-of-purchase displays
Reduced prices
In-store coupons or specials (Kmart’s Blue Light
specials)
Multiple-item discounts
Packaging
In-store demonstrations
Store atmosphere
Salespeople
Choice Outlet selection or brand choice, which comes first?

• Brand choice first

• Brand loyalty
• No outlet loyalty or preference
• No need for the expertise of salespeople (knowledgeable
consumers)
• Outlet choice first
• High store loyalty or preference
• Low brand loyalty
• Need for helpful sales staff
• Brand and outlet working together
• Find the best fit for the consumer’s self-image
Outlet Image and Choice

Image - The sum total of various functional and

psychological outlet attributes
•Functional attributes: merchandise, prices, credit
policies, store layout, etc.
•Psychological attributes: sense of belonging, feeling of
warmth or excitement, etc.
Outlet Image (continued)
 Retailers (stores, catalogs, Web sites, etc.) use
attributes that imply certain benefits to attempt to
create an image that appeals to their target
market(s)
- Influences on outlet choice include the level of
involvement, perceived risk, advertising, prices, and
outlet size.
Consumer Choice and Shopping Behavior
Why do people shop?
-Personal and social motives
How do people shop?
-Shopping orientation: their style or way of shopping
Choice decision during the shopping process:
-Which product to buy, how many, which brands to buy, which
outlet to use, when to buy, how to pay, and other (should we buy
extended warranty)?