1. Alternative Evaluation and Selection Process
Evaluative criteria
Importance of criteria
Alternatives considered
Evaluation of alternatives on each criterion
Decision rules applied
Alternative selected

2. Ex: Notebook Computers
Evaluative Criteria
Importance
Minimal Acceptable Performance
Consumer Perceptions
Gateway HP
Compaq
Dell
IBM
Toshiba
Price 30 3 5 4 2 1
Weight 25
Processor 10
Battery life 05
Service
Display 20

3. Compensatory Decision Rule
Multi-attribute model n
Rb=  Wi Bib
i=1

4. Non-compensatory Decision Rules
Accept alternative only if each criterion equals or exceeds the minimum cutoff level.
A product is acceptable only if it exceeds the minimum level on at least one criterion
Crank criterion from most to least important and choose best alternative on most important criterion
Select one criterion and eliminate alternatives that don’t exceed it’s established cutoff level. Continue eliminating until one alternative remains.
Conjunctive
Disjunctive
Lexicographic
Elimination by aspects

5. Combination Processes
Mix of compensatory and non-compensatory processes, combined or “constructed” on the spot to adapt to environmental factors

6. Attribute-Based vs. Attitude-Based Choice
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.

7. Examples of Consumer Heuristics
Search Heuristics
Store selection
Sources of information
Source credibility

8. Examples of Consumer Heuristics (cont.)
Evaluation Heuristics
Key criteria
Negative criteria
Significant differences

9. Examples of Consumer Heuristics, cont..
Choice Heuristics
If choosing among familiar products...
Works best
Bought last
Price-based rule

10. Examples of Consumer Heuristics (cont.)
Choice Heuristics
If choosing among unfamiliar products
Wait and see
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