Consumer Behaviour class paper

Furkano
Chapter13.ppt

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Copyright © 2014 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

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Decision Making II:
Alternative Evaluation
and Choice

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Learning Outcomes

Understand the difference between evaluative criteria and determinant criteria.

Comprehend how value affects the evaluation of alternatives.

Explain the importance of product categorization in the evaluation of alternatives process.

Distinguish between compensatory and noncompensatory rules that guide consumer choice.

LO13-1

LO13-2

LO13-3

LO13-4

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LO13-1

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Copyright © 2014 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

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  • Understand the difference between evaluative criteria and determinant criteria.

LO13-1

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Copyright © 2014 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

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Evaluative and Determinant Criteria

  • Attributes, features, or potential benefits that consumers consider when reviewing possible solutions to a problem
  • Evaluative criteria that are related to the actual choice that is made

LO13-1

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LO13-1

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Copyright © 2014 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

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  • Comprehend how value affects the evaluation of alternatives.

LO13-2

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Copyright © 2014 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

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Value and Alternative Evaluation

  • Hedonic criteria - Emotional, symbolic, and subjective attributes

A teenager’s emotional attachment to his gaming console is a hedonic criterion

  • Utilitarian criteria - Functional or economic aspects

The low cost of the gaming console is a utilitarian criterion

  • Bounded rationality - Perfectly rational decisions are not always feasible

LO13-2

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Types of Evaluation Processes

Affect-based evaluation

Evaluate products based on the overall feeling that is evoked by the alternative

Attribute-based evaluation

Evaluate alternatives across a set of attributes that are considered relevant to the purchase situation

LO13-2

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Copyright © 2014 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

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  • Explain the importance of product categorization in the evaluation of alternatives process.

LO13-3

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Product Categories

  • Mental representations of stored knowledge about groups of products
  • Category levels

Superordinate

Subordinate

LO13-3

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LO13-3

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Attributes

LO13-3

Perceptual attributes

Underlying attributes

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Signals

  • A characteristic that allows a consumer to diagnose something distinctive about an alternative
  • Signals include:

Brand name

Price

Appearance

Retailer reputation

  • Signals are used when consumers are trying to collect information about quality

LO13-3

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Factors Determining Evaluative Criteria Used

  • Situational influences
  • Product knowledge
  • Expert opinions
  • Social influences
  • Online sources
  • Marketing communications

LO13-3

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Consumer Judgment

  • Mental assessments of the presence of attributes and the benefits associated with those attributes
  • Consumers make judgments about:

Presence of features

Feature levels

Benefits associated with features

Value associated with the benefit

How objects differ from each other

LO13-3

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Issues Affecting Consumer Judgments

LO13-3

Just Noticeable Difference

Attribute Correlation

Quality Perceptions

Brand Name Associations

Consumer Personality

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LO13-3

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Copyright © 2014 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

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  • Distinguish between compensatory and noncompensatory rules that guide consumer choice.

LO13-4

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Consumer Choice: Decision Rules

Compensatory rules

Allow consumers to select products that may perform poorly on one attribute by compensating for the poor performance by good performance on another attribute

Noncompensatory rules

Strict guidelines are set prior to selection, and any option that does not meet the specifications is eliminated from consideration

LO13-4

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LO13-4

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Noncompensatory Models

LO13-4

Conjunctive Rule

Disjunctive Rule

Lexicographic Rule

Elimination-by-aspects Rule (EBA)

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LO13-4

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Retail Outlet Selection

LO13-4

Online retailers have to thoroughly describe the evaluative criteria that consumers may use

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