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CHAPTER
16
Alternative Evaluation and Selection
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16-2
PART IV: CONSUMER DECISION PROCESS
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| Discuss how actual consumer choice often differs from rational choice theory |
| Summarize the types of choice processes consumers engage in |
| Explain evaluative criteria and their measurement |
| Describe the role of evaluative criteria in consumer judgment and marketing strategy |
| Summarize the five decision rules for attribute-based choice and their strategic relevance |
Learning Objectives
L03
L05
L01
L04
L02
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Consumer Choice and Types of Choice Processes
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An Examination of Rational Choice Theory
| Assumption: Consumers seek one optimal solution to a problem and choose on that basis Reality: Consumers have all sorts of “metagoals” that are different from this |
| Assumption: Consumers have the skill and motivation to find the optimal solution Reality: Consumers often lack both the skill or motivation to do so |
| Assumption: The optimal solution does not change as a function of situational factors such as time pressure, task definition, or competitive context Reality: Context effects are common |
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Consumer Choice and Types of Choice Processes
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Affective Choice
Attitude-Based Choice
Attribute-Based Choice
Three types of consumer choice processes:
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Consumer Choice and Types of Choice Processes
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Affective choices tend to be more holistic. Brand not decomposed into distinct components for separate evaluation.
Evaluations generally focus on how they will make the user feel as they are used.
Affective Choice
Choices are often based primarily on the immediate emotional response to the product or service.
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Consumer Choice and Types of Choice Processes
Tim Hall/Getty Images
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The following Video Clip demonstrates how Holiday Inn Express tries to encourage affective choice by advertising the product in a “promotion-focused” way by keying in on the brand as a “smart” choice!
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Video Application
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Attitude- versus Attribute-Based Choice Processes
Attribute-Based Choice
Requires the knowledge of specific attributes at the time the choice is made, and it involves attribute-by-attribute comparisons across brands.
Attitude-Based Choice
Involves the use of general attitudes, summary impressions, intuitions, or heuristics; no attribute-by-attribute comparisons are made at the time of choice.
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Consumer Choice and Types of Choice Processes
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Evaluative criteria are typically associated with desired benefits and can differ in
type
number, and
importance
Nature of Evaluative Criteria
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Evaluative Criteria
YouTube Spotlight
Tide he Turbo”Smart Suds” Commercial
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Measurement of Evaluative Criteria
Involves a determination of:
The Evaluative Criteria Used
Judgments of Brand Performance on Specific Criteria
The Relative Importance of Evaluative Criteria
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Evaluative Criteria
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Direct methods include asking consumers what criteria they use in a particular purchase.
Indirect techniques assume consumers will not or cannot state their evaluative criteria.
Projective techniques - allow the respondent to indicate the criteria someone else might use.
Perceptual mapping - researcher uses judgment to determine dimensions underlying consumer evaluations of brand similarity.
Determination of Which Evaluative Criteria Are Used
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Evaluative Criteria
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Perceptual Mapping of Beer Brand Perception
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Evaluative Criteria
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Measuring consumer judgments of brand performance on specific attributes can include:
Rank ordering scales
Semantic Differential Scales
Likert Scales
Determination of Consumers’ Judgments of Brand
Performance on Specific Evaluative Criteria
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Evaluative Criteria
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The importance assigned to evaluative criteria can be measured either by direct or by indirect methods.
The constant sum scale is the most common direct method.
Conjoint Analysis is the most common indirect method.
Determination of the Relative Importance of Evaluative Criteria
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Evaluative Criteria
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Accuracy of Individual Judgments
Use of Surrogate Indicators
The Relative Importance and Influence of Evaluative Criteria
Evaluative Criteria, Individual Judgments, and Marketing Strategy
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Individual Judgment and Evaluative Criteria
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Conjunctive Rule
Disjunctive Rule
Elimination-by-Aspects Rule
Lexicographic Rule
Compensatory Rule
Non-compensatory
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Decision Rules for Attribute-Based Choices
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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 | 3 |
| Weight | 4 |
| Processor | 3 |
| Battery life | 1 |
| After-sale support | 2 |
| Display quality | 3 |
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Decision Rules for Attribute-Based Choices
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Lenovo, Acer, Dell, and Toshiba are eliminated because they fail to meet all the minimum standards.
Conjunctive Rule
Minimum
3
4
3
1
2
3
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Decision Rules for Attribute-Based Choices
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Disjunctive Rule:
Establishes a minimum required performance for each important attribute (often a high level).
All brands that meet or exceed the performance level for any key attribute are acceptable. If minimum performance was:
| Price | 5 |
| Weight | 5 |
| Processor | Not critical |
| Battery life | Not critical |
| After-sale support | Not critical |
| Display quality | 5 |
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Decision Rules for Attribute-Based Choices
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Acer, Compaq, and Dell meet minimum for at least one important criterion and thus are acceptable.
Disjunctive Rule
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Decision Rules for Attribute-Based Choices
Minimum
5
5
-
-
-
5
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Elimination-by-Aspects Rule
First, evaluative criteria ranked in terms of importance
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:
| Rank | Cutoff | |
| Price | 1 | 3 |
| Weight | 2 | 4 |
| Display quality | 3 | 4 |
| Processor | 4 | 3 |
| After-sale support | 5 | 3 |
| Battery life | 6 | 3 |
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Decision Rules for Attribute-Based Choices
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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.
Elimination-by-Aspects Rule
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Decision Rules for Attribute-Based Choices
Minimum
3
4
4
3
3
3
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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.
Lexicographic Decision Rule
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Decision Rules for Attribute-Based Choices
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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.
Compensatory Decision Rule
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Decision Rules for Attribute-Based Choices
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Compensatory Decision Rule
| Importance Score | |
| Price | 30 |
| Weight | 25 |
| Processor | 10 |
| Battery life | 05 |
| After-sale support | 10 |
| Display quality | 20 |
| Total | 100 |
Assume the following importance weights:
Using this rule, Dell has the highest preference and would be chosen.
The calculation for Dell is:
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Decision Rules for Attribute-Based Choices
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Summary of Resulting Choices from Different Decision Rules
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Decision Rules for Attribute-Based Choices
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Choices are not independent of the competitive situation, an effect sometimes called context effects
One such effect is when an additional competitor makes an existing competitor appear to be the “compromise” option
Choice of the compromise brand increases even though:
Consumers are still using the same decision rule (compensatory)
The compromise brand’s attribute levels have not changed
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Situational Influences on Consumer Choice
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Compromise Effect
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Situational Influences on Consumer Choice
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