3How Consumers Make Choices In reality, all consumers have bounded rationalityA limited capacity for processing information.A metagoal refers to the general nature of the outcome being sought.
4How Consumers Make Choices Metagoals in Decision MakingMaximize the accuracy of the decisionMinimize the cognitive effort required for the decisionMinimize the experience of negative emotionMaximize the ease of justifying the decision
5How Consumers Make Choices Affective ChoiceAttitude-Based ChoiceAttribute-Based ChoiceThree types of consumer choice processes:16-5
6How Consumers Make Choices Affective ChoiceAffective 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.Choices are often based primarily on the immediate emotional response to the product or service.
7How Consumers Make Choices Attribute- versus Attitude-Based Choice ProcessesAttribute-Based ChoiceRequires the knowledge of specific attributes at the time the choice is made, and it involves attribute-by-attribute comparisons across brands.Attitude-Based ChoiceInvolves the use of general attitudes, summary impressions, intuitions, or heuristics; no attribute-by-attribute comparisons are made at the time of choice.
10Evaluative Criteria type number importance Nature of Evaluative CriteriaEvaluative criteria are typically product features or attributes associated with either benefits desired by customers or the costs they must incur.Evaluative criteria can differ intypenumberimportance16-10
11Evaluative Criteria Measurement of Evaluative Criteria Involves a determination of:The Evaluative Criteria UsedJudgments of Brand Performance on Specific CriteriaThe Relative Importance of Evaluative Criteria16-11
12Evaluative CriteriaDetermination of Which Evaluative Criteria Are UsedDirect methods include asking consumers what criteria they use in a particular purchase.Indirect techniques assume consumers will not or cannot state their evaluative criteria.Projective techniquesPerceptual mapping
13Evaluative CriteriaPerceptual Mapping of Beer Brand Perception
14Evaluative Criteria Determination of Consumers’ Judgments of Brand Performance on Specific Evaluative CriteriaMeasuring consumer judgments of brand performance on specific attributes can include:Rank ordering scalesSemantic Differential ScalesLikert Scales
15Evaluative CriteriaDetermination of the Relative Importance of Evaluative CriteriaThe importance assigned to evaluative criteria can bemeasured either by direct or by indirect methods.The constant sum scale is the most common direct method.Conjoint Analysis is the most common indirect method.
16Individual Judgment and Evaluative Criteria Accuracy of Individual JudgmentsUse of Surrogate IndicatorsThe Relative Importance and Influence of Evaluative CriteriaEvaluative Criteria, Individual Judgments, and Marketing Strategy16-16
18Decision Rules for Attribute-Based Choices Conjunctive RuleWinBook, Dell, IBM, and Toshiba are eliminated because they fail to meet all the minimum standards.Minimum3412
19Decision Rules for Attribute-Based Choices Disjunctive 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:Price5WeightProcessorNot criticalBattery lifeAfter-sale supportDisplay quality
20Decision Rules for Attribute-Based Choices Disjunctive RuleWinBook, Compaq, and Dell meet minimum for at least one important criterion and thus are acceptable.Minimum5-
21Decision Rules for Attribute-Based Choices Elimination-by-Aspects RuleFirst, evaluative criteria ranked in terms of importanceSecond, 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.RankCutoffPrice13Weight24Display qualityProcessorAfter-sale support5Battery life6
22Decision Rules for Attribute-Based Choices Elimination-by-Aspects RuleStep 1: Price eliminates IBM and ToshibaStep 2: Weight eliminates WinBookStep 3: Of remaining brands (HP, Compaq, Dell), only Dell meets or exceeds display quality minimum.Minimum3416-22
23Decision Rules for Attribute-Based Choices Lexicographic Decision RuleConsumer 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.
24Decision Rules for Attribute-Based Choices Compensatory Decision RuleThe compensatory 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.
25Decision Rules for Attribute-Based Choices Compensatory Decision RuleImportance ScorePrice30Weight25Processor10Battery life05After-sale supportDisplay quality20Total100Assume the following importance weights:Using this rule, Dell has the highest preference and would be chosen.The calculation for Dell is:
26Decision Rules for Attribute-Based Choices Summary of Resulting Choices from Different Decision Rules