Consumer Behavior MKTG 302-PSYC 335 Decision Making (2) Prof. Dr. Zeynep Gürhan-Canlı

Evaluative Criteria The attributes, features, or potential benefits that consumers consider when reviewing possible solutions to a problem.

Exhibit 13.2 Product, Feature, and Benefit

Determinant Criteria The evaluative criteria that are related to the actual choice that is made.

Example of a Determinant Criterion When the MacBook Air was introduced, the product was promoted largely on thinness and portability. © JOHN GREEN/SAN MATEO COUNTY TIMES/MCT/NEWSCOM

Value and Alternative Evaluation Hedonic criteria – emotional, symbolic, and subjective attributes or benefits that are associated with an alternative. Utilitarian criteria – functional or economic aspects associated with an alternative. Bounded rationality – perfectly rational decisions are not always feasible due to constraints found in information processing.

Brand-Level Choice Alternative-based strategies evaluate alternatives holistically or across their descriptive attributes. Attribute-based strategies evaluate more than one alternative at a time by comparing their values on an attribute, then a second attribute, and so on. Compensatory strategies allow for trade-offs among attribute values, where low (high) values on one attribute may be compensated by high (low) values on another attribute. Noncompensatory strategies do not allow for such trade-offs -- they involve the elimination of alternatives to do not meet certain criteria.

Brand-Level Choice Strategies Linear Compensatory (Additive) Strategy: Add up or combine each attribute value for an alternative into an overall evaluation and then compare the overall evaluations of the different choice alternatives (alternative-based, compensatory). Additive Difference Strategy: Customers determine the difference between any two alternatives on a given attribute, then determine their difference on another attribute, and so on. These attribute differences are combined or added up into an overall difference between the alternatives (attribute-based, compensatory).

Brand-Level Choice Strategies Conjunctive Strategy: A brand must “pass” (equal or exceed) a set of attribute value cutoffs on key attributes (alternative-based, noncompensatory). Disjunctive Strategy: A brand must “pass” equal or exceed) a relatively high cutoff, or be very good, on at least one attribute (alternative-based, noncompensatory).

Brand-Level Choice Strategies Lexicographic Strategy: A brand is chosen that is best on the customer’s most important attribute. If more than one brand is equal on this attribute, the second most important attribute is used to break the tie, and so on (attribute-based, noncompensatory). Elimination by Aspects (EBA) Strategy: Attributes or aspects are chosen with some probability that is proportionate to their importance to the customer. For each attribute selected, alternatives that are unacceptable or unsatisfactory on that attribute are eliminated (attribute-based, noncompensatory).

Brand-Level Choice Strategies Phased or Hybrid Strategy: Phased or hybrid strategies involve the use of more than one qualitatively different type of strategy for different alternatives or at different phases of the evaluation process. The particular combination of strategies is often constructed as the customer proceeds through the evaluation or choice task. How might each strategy be used to evaluate the following flights to London?

Brand-Level Choice Strategies On Time Flights Service Price Record Per Day Quality Northwest British Air American United $800 Good 2 Good $750 Fair 1 Good $800 Fair 1 Fair $600 Poor 1 Poor Hypothetical Attributes for a Round-Trip Flight to London

Match the Protocol to the Strategy! A. “The most important thing to me is that I am treated well on the plane. It is a long flight, and I can not afford first or business class. Of the four flights, Northwest and British Air rate the highest on service quality, so it is between these two. Now, price is the next most important factor remaining. I’ll take the British Air flight because it’s cheaper.” B. “I need a flight that costs less than $700 and flies everyday. Northwest has two flights a day but costs too much. British Air flies every day but is still too expensive. American also flies every day but is again too expensive. United’s flight is only $600 and flies every day, so that’s what I want.”

Match the Protocol to the Strategy! C. “Let’s see . . . the Northwest flight is $800, on time record and service quality are both good, and there are two flights per day, which is overall a pretty good deal. The American flight is also $800, on time record and service quality are fair, and their is one flight per day, which is not as good overall as the Northwest flight, so I’ll fly Northwest.” D. “Price, hum, the Northwest and American flights are really too expensive. That leaves the British Air and United flights. On time record is fair in both of them, which is OK. Each one flies daily to London, which is also what I need. On service quality, I don’t like being treated poorly, so I would eliminate the United flight. That leaves British Air.”

Match the Protocol to the Strategy! E. “I’m looking at the British Air and the United flights. United is $150 cheaper. British Air has a better on time record, however, and they both fly daily to London. British Air also has a higher rating on service quality. However, the $150 that I save is still more important to me than the service and on time record, so I’ll go with United.” F. “I want a flight that is either very inexpensive, less than $700, or has good service. The Northwest flight is more expensive than I’d like but has the service. The British Air flight is again too expensive but the service is good. The American flight doesn’t offer the price or the service that I want, so that’s out. The United flight has the kind of price that I want. So, now I have to decide among the two with good service and the one with a good price.”

Match the Protocol to the Strategy! G. “Price is important, and the Northwest and American flights are just too expensive, so I would eliminate them on price. That leaves the British Air and United flights. For $750, the British Air flight has only a fair on time record but is good on service quality. For $600, the United flight has a poor on time record and poor service quality, but is overall a pretty good deal, so I’ll fly United.”