CHAPTER SIXTEEN
Alternative Evaluation and Selection
McGraw-Hill/Irwin
Copyright © 2004 by The McGraw-Hill Companies, Inc. All rights reserved.
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Figure 16-1
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How Consumers Make Choices
• Bounded Rationality: a limited capacity
for processing information
• Affective Choice: choices driven by how
they make the user feel
• Attribute-Based vs. Attitude-Based
Choice:
• Knowledge of specific attributes
• The use of attitudes, intuitions, and heuristics
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Consumer Insight 16-1
• Do you agree with the four metagoals
described above? What others do you
think are common?
• What are the marketing implications of
each of the metagoals described above
(assume all four are widely used by
consumers)?
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Evaluative Criteria
• Nature of Evaluative Criteria
• Tangible
• Intangible
• Measurement of Evaluative Criteria
• Which criteria are used?
• Brand performance on criteria
• Relative Importance of Criteria
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Perceptual Mapping
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Individual Judgment
• Accuracy of Individual Judgments: the
ability to judge performance of
competing brands
• Use of Surrogate Indicators: an
attribute used to stand for or indicate
another attribute (e.g.. Price)
• Influence on Marketing Strategy:
• Understanding the criteria
• Recognize the ability of individuals to judge
• Focus on surrogate indicators
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Performance on Each Evaluative Criteria
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Decision Rules Used by Consumers
Conjunctive:
Select all (or any or first) brands that surpass a minimum level on
each relevant evaluative criterion.
Disjunctive:
Select all (or any or first) brands that surpass a satisfactory level on
any relevant evaluative criterion.
Eliminationby-aspects
Rank the evaluative criteria in terms of importance and establish
satisfactory levels for each. Start with the most important attribute
and eliminate all brands that do not meet the satisfactory level.
Continue through the attributes in order of importance until only one
brand is left.
Lexicographic: Rank the evaluative criteria in terms of importance. Start with the
most
important criterion and select the brand that scores highest on that
dimension. If two or more brands tie, continue through the attributes
in order of importance until one of the remaining brands outperforms
the others.
Compensatory: Select the brand that provides the highest total score when the
performance ratings for all the relevant attributes are added (with or
without importance weights) together for each brand.
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Conjunctive Decision Ad
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Disjunctive Decision Ad
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Elimination-by-Aspects Ad
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Lexicographic Decision Ad
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Understanding which decision rules
are being used…
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