1. Alternative Evaluation and Choice
BABIN / HARRIS CB
PART 4
CHAPTER 13
Decision Making II:
Alternative Evaluation
and Choice
©PETER SAMUELS/THE IMAGE BANK/GETTY IMAGES 1

2. Learning Outcomes LO1 LO2 LO3 LO4
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.
LO2
LO3
LO4

3. Exhibit 13.1: Consumer Decision- Making Process
LO1

4. LO1
Understand the difference between evaluative criteria and determinant criteria. 4

5. Evaluative Criteria
LO1
The attributes, features, or potential benefits that consumers consider when reviewing possible solutions to a problem.

6. Exhibit 13.2 Product, Feature, and Benefit
LO1

7. Value Equation
LO1

8. Determinant Criteria
LO1
The evaluative criteria that are related to the actual choice that is made.

9. Example of a Determinant Criterion
LO1
When the
MacBook Air was introduced, the product was promoted largely on thinness and portability.
© JOHN GREEN/SAN MATEO COUNTY TIMES/MCT/NEWSCOM

10. Comprehend how value affects the evaluation of alternatives.
LO2
Comprehend how value affects the evaluation of alternatives. 10

11. Value and Alternative Evaluation
LO2
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.

12. Types of Evaluation Processes
LO2
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.

13. LO3
Explain the importance of product categorization in the evaluation of alternatives process. 13

14. Product Categories
LO3
Mental representations of stored knowledge about groups of products.
Category levels:
Superordinate
Subordinate

15. Exhibit 13.4: Superordinate and Subordinate Categorization
LO3

16. Attributes
LO3
Perceptual attributes
Underlying attributes

17. Signals
LO3
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.

18. Factors Determining Evaluative Criteria Used
LO3
Situational influences
Product knowledge
Expert opinions
Social influences
Online sources
Marketing communications

19. Green Marketing
LO3
Focuses on offering sustainable products to consumers.
AP IMAGES/TOM UHLMAN

20. Consumer Judgment
LO3
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

21. Issues Affecting Consumer Judgments
LO3
Attribute correlation
Brand name associations
Just noticeable difference
Quality perceptions

22. Brand Names and Judgment
LO3
©MARK YAMAMOTO/NEWSCOM
What can a brand name tell you about a product?

23. Exhibit 13.5 Missing Information
LO3

24. LO4
Distinguish between compensatory and noncompensatory rules that guide consumer choice. 24

25. Consumer Choice: Decision Rules
LO4
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.

26. Exhibit 13.6: A Compensatory Approach
LO4
The formula [Ao = Σ(bi)(ei)] allows for poor scores on one attribute to be compensated for by good scores on another.

27. Noncompensatory Models
LO4
Conjunctive rule
Disjunctive rule
Lexicographic rule
Elimination-by-aspects rule (EBA)

28. Exhibit 13.7 Noncompensatory Decision Approaches
LO4

29. Retail Outlet Selection
©RICHARD LEVINE/ALAMY
Online retailers have to thoroughly describe the evaluative criteria that consumers may use.