marketing 334 consumer behavior
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Marketing 334 Consumer Behavior. Chapter 16 Alternative Evaluation and Selection From: Consumer Behavior , 10 th ed. By Hawkins, Mothersbaugh and Best. Alternative Evaluation and Selection. How Consumers Make Choices. In reality, all consumers have bounded rationality - PowerPoint PPT PresentationTRANSCRIPT
Marketing 334Consumer Behavior
Chapter 16Alternative Evaluation and
Selection
From: Consumer Behavior, 10th ed. By Hawkins, Mothersbaugh and Best
Alternative Evaluation and SelectionAlternative Evaluation and Selection
How Consumers Make ChoicesHow Consumers Make Choices
In reality, all consumers have bounded rationality bounded rationality
A limited capacity for processing information.
A metagoalmetagoal refers to the general nature of the outcome being sought.
How Consumers Make ChoicesHow Consumers Make Choices
Metagoals in Decision MakingMetagoals in Decision Making
• Maximize the accuracy of the decisionMaximize the accuracy of the decision
• Minimize the cognitive effort required for the decisionMinimize the cognitive effort required for the decision
• Minimize the experience of negative emotionMinimize the experience of negative emotion
• Maximize the ease of justifying the decisionMaximize the ease of justifying the decision
16-5
How Consumers Make ChoicesHow Consumers Make Choices
1.1. Affective ChoiceAffective Choice
2.2. Attitude-Based ChoiceAttitude-Based Choice
3.3. Attribute-Based ChoiceAttribute-Based Choice
Three types of consumer choice processes:Three types of consumer choice processes:
How Consumers Make ChoicesHow Consumers Make Choices
Affective choices tend to be more holistic. Brand not decomposed into distinct components for separate evaluation.
Evaluations generally focus on how they will make the user feel as they are used.
Affective ChoiceAffective Choice
Choices are often based primarily on the immediate emotional response to the product or service.
How Consumers Make ChoicesHow Consumers Make Choices
Attribute- versus Attitude-Based Choice ProcessesAttribute- versus Attitude-Based Choice Processes
Attribute-Based Choice Attribute-Based Choice
•Requires the knowledge of specific attributes at the time the choice is made, and it involves attribute-by-attribute comparisons across brands.
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.
Avis
Courtesy Avis, Inc.
Gucci Watch
Gucci Watch
16-10
Evaluative CriteriaEvaluative Criteria
Evaluative criteria are typically product features or attributes associated with either benefits desired by customers or the costs they must incur.
Evaluative criteria can differ in
type number importance
Nature of Evaluative CriteriaNature of Evaluative Criteria
16-11
Evaluative CriteriaEvaluative Criteria
Measurement of Evaluative CriteriaMeasurement of Evaluative Criteria
Involves a determination of:
The Evaluative Criteria Used
Judgments of Brand Performance on Specific Criteria
The Relative Importance of Evaluative Criteria
Evaluative CriteriaEvaluative Criteria
1.1. DirectDirect methods include asking consumers what criteria they use in a particular purchase.
2.2. IndirectIndirect techniques assume consumers will not or cannot state their evaluative criteria.
• Projective techniquesProjective techniques
• Perceptual mappingPerceptual mapping
Determination of Which Evaluative Criteria Are UsedDetermination of Which Evaluative Criteria Are Used
Evaluative CriteriaEvaluative CriteriaPerceptual Mapping of Beer Brand PerceptionPerceptual Mapping of Beer Brand Perception
Evaluative CriteriaEvaluative Criteria
Measuring consumer judgments of brand performance on specific attributes can include:
Rank ordering scales
Semantic Differential Scales
Likert Scales
Determination of Consumers’ Judgments of BrandDetermination of Consumers’ Judgments of Brand Performance on Specific Evaluative CriteriaPerformance on Specific Evaluative Criteria
Evaluative CriteriaEvaluative Criteria
The importance assigned to evaluative criteria can be
measured either by directdirect or by indirectindirect methods.
The constant sum scale is the most common direct method.
Conjoint Analysis is the most common indirect method.
Determination of the Relative Importance of Evaluative CriteriaDetermination of the Relative Importance of Evaluative Criteria
16-16
Individual Judgment and Evaluative Individual Judgment and Evaluative CriteriaCriteria
Accuracy of Individual JudgmentsAccuracy of Individual Judgments
Use of Surrogate IndicatorsUse of Surrogate Indicators
The Relative Importance and Influence of Evaluative CriteriaThe Relative Importance and Influence of Evaluative Criteria
Evaluative Criteria, Individual Judgments, and Marketing Evaluative Criteria, Individual Judgments, and Marketing StrategyStrategy
16-17
Decision Rules for Attribute-Based Decision Rules for Attribute-Based ChoicesChoices
Conjunctive RuleConjunctive Rule
Disjunctive RuleDisjunctive Rule
Elimination-by-Aspects RuleElimination-by-Aspects Rule
Lexicographic RuleLexicographic Rule
Compensatory RuleCompensatory Rule
Non-compensatory
Decision Rules for Attribute-Based Decision Rules for Attribute-Based ChoicesChoices
WinBook, Dell, IBM, and Toshiba are eliminated because they fail to meet all the minimum standards.
Conjunctive RuleConjunctive Rule
MinimumMinimum334433112233
Decision Rules for Attribute-Based Decision Rules for Attribute-Based ChoicesChoices
Disjunctive RuleDisjunctive Rule:
Establishes a minimum required performance for each important attribute (often a high level).
All brands that meet or exceed the performance level for any key attribute are acceptable.
If minimum performance was:
PricePrice 55
WeightWeight 55
ProcessorProcessor Not criticalNot critical
Battery lifeBattery life Not criticalNot critical
After-sale supportAfter-sale support Not criticalNot critical
Display qualityDisplay quality 55
Decision Rules for Attribute-Based Decision Rules for Attribute-Based ChoicesChoices
WinBook, Compaq, and Dell meet minimum for at least one important criterion and thus are acceptable.
Disjunctive RuleDisjunctive Rule
MinimumMinimum5555------55
Decision Rules for Attribute-Based Decision Rules for Attribute-Based ChoicesChoices
Elimination-by-Aspects RuleElimination-by-Aspects Rule
First, evaluative criteria ranked in terms of importance
Second, cutoff point for each criterion is established.
Finally (in order of attribute importance) brands are eliminated if they fail to meet or exceed the cutoff.
RankRank CutoffCutoff
PricePrice 11 33
WeightWeight 22 44
Display qualityDisplay quality 33 44
ProcessorProcessor 44 33
After-sale After-sale supportsupport
55 33
Battery lifeBattery life 66 33
16-22
Decision Rules for Attribute-Based Decision Rules for Attribute-Based ChoicesChoices
Step 1: Price eliminates IBM and Toshiba
Step 2: Weight eliminates WinBook
Step 3: Of remaining brands (HP, Compaq, Dell), only Dell meets or exceeds display quality minimum.
Elimination-by-Aspects RuleElimination-by-Aspects Rule
MinimumMinimum334433333344
Decision Rules for Attribute-Based Decision Rules for Attribute-Based ChoicesChoices
Consumer ranks the criteria in order of importance.
Then selects brand that performs best on the most important attribute.
If two or more brands tie, they are evaluated on the second most important attribute. This continues through the attributes until one brand outperforms the others.
WinBook would be chosen because it performs best on Price, our consumer’s most important attribute.
Lexicographic Decision RuleLexicographic Decision Rule
Decision Rules for Attribute-Based Decision Rules for Attribute-Based ChoicesChoices
The compensatory decision rulecompensatory decision rule states that the brand that rates highest on the sum of the consumer’s judgments of the relevant evaluative criteria will be chosen.
Compensatory Decision RuleCompensatory Decision Rule
Decision Rules for Attribute-Based Decision Rules for Attribute-Based ChoicesChoices
Compensatory Decision RuleCompensatory Decision Rule
Importance ScoreImportance Score
PricePrice 3030
WeightWeight 2525
ProcessorProcessor 1010
Battery lifeBattery life 0505
After-sale supportAfter-sale support 1010
Display qualityDisplay quality 2020
TotalTotal 100100
Assume the following importance weights:
Using this rule, Dell has the highest preference and would be chosen.
The calculation for Dell is:
Decision Rules for Attribute-Based Decision Rules for Attribute-Based ChoicesChoices
Summary of Resulting Choices from Different Decision RulesSummary of Resulting Choices from Different Decision Rules