1. © 2014 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Chapter 13 Decision Making II: Alternative Evaluation and Choice

2. © 2014 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Learning Outcomes Understand the difference between evaluative criteria and determinant criteria Comprehend how value affects the evaluation of alternatives

3. © 2014 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Learning Outcomes Explain the importance of product categorization in the evaluation of alternatives process Distinguish between compensatory and noncompensatory rules that guide consumer choice

4. © 2014 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

5. Evaluative Criteria Attributes, features, or potential benefits that consumers consider when reviewing possible solutions to a problem Feature - Performance characteristic of an object Benefit - Perceived favorable result that is derived from the presence of a particular feature

6. © 2014 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

7. Determinant Criteria ­Determinant criteria - Evaluative criteria that are related to the actual choice that is made

8. © 2014 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Value and Alternative Evaluation 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

9. © 2014 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Types of Evaluation Processes 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

10. © 2014 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Product Categorization and Criteria Selection Product categories - Mental representations of stored knowledge about groups of products Category levels – Superordinate – Subordinate

11. © 2014 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

12. Perceptual and Underlying ¬Attributes Perceptual attributes - Visually apparent and easily recognizable Underlying attributes - Readily apparent and can only be learned through experience with the product – Signal - Characteristic that allows a consumer to diagnose something distinctive about an alternative

13. © 2014 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Factors Determining Evaluative Criteria Used Situational InfluencesProduct KnowledgeExpert OpinionsSocial InfluencesOnline SourcesMarketing Communications

14. © 2014 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Issues That Affect Consumer Judgments Just noticeable difference Attribute correlation Quality perceptions Brand name associations Consumer personality

15. © 2014 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

16. Consumer Choice: Decision Rules 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 - Used, strict guidelines are set prior to selection, and any option that does not meet the specifications is eliminated from consideration

17. © 2014 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Noncompensatory Models Conjunctive RuleDisjunctive RuleLexicographic RuleElimination-by-aspects Rule (EBA)

18. © 2014 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

19. Retail Outlet Selection Several factors influence the choice of retail outlet including objective and subjec­tive criteria such as: – Product variety – Store image – Location – Service – Product quality