1 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. 13 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. 4 Decision Making II: Alternative Evaluation and Choice

2 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. 2 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. LO 13-1 LO 13-2 LO 13-3 LO 13-4

3 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. LO 13-1

4 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. 4 Evaluative and Determinant Criteria ▮ Evaluative: Attributes, features, or potential benefits that consumers consider when reviewing possible solutions to a problem ▮ Determinant: Evaluative criteria that are related to the actual choice that is made

5 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. Features & Benefits

6 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. 6 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

7 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. 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

8 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. 8 Product Categories ▮ Mental representations of stored knowledge about groups of products ▮ Category levels Superordinate Subordinate

9 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.

10 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. 10 Attributes Perceptual attributes Underlying attributes

11 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. 11 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

12 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. 12 Factors Determining Evaluative Criteria Used ▮ Situational influences ▮ Product knowledge ▮ Expert opinions ▮ Social influences ▮ Online sources ▮ Marketing communications

13 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. 13 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

14 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. LO 13-3

15 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. 15 Issues Affecting Consumer Judgments Just Noticeable Difference Attribute Correlation Quality Perceptions Brand Name Associations Consumer Personality

16 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. Consumer Choice: Decision Rules Compensatory rules (Fishbein Model) 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

17 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. LO 13-4

18 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. 18 Noncompensatory Models Conjunctive Rule Disjunctive Rule Lexicographic Rule Elimination-by-aspects Rule (EBA)

19 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. LO 13-4

20 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. 20 Retail Outlet Selection Online retailers have to thoroughly describe the evaluative criteria that consumers may use