Decision-Making II: Alternative Evaluation & Choice Chapter 12

Evaluations of Alternative Choices Evaluative criteria Evaluative criteria Feature Feature Performance characteristic Performance characteristic Benefit Benefit Results derived from that feature Results derived from that feature Determinant criteria Determinant criteria

Value & Alternative Evaluation Role of values Role of values Hedonic and utilitarian Hedonic and utilitarian Bounded rationality Bounded rationality Affect-based evaluation Affect-based evaluation Attribute-based evaluation Attribute-based evaluation

Product Categorization Consumers gather information, and must try to organize it Consumers gather information, and must try to organize it Product categories Product categories Category levels Category levels Various categories Various categories Superordinate v. subordinate Superordinate v. subordinate Perceptual v. underlying Perceptual v. underlying Signal Signal

Criteria Selection What determines what evaluative criteria are used? What determines what evaluative criteria are used? Situational influencers Situational influencers Product knowledge Product knowledge Expert opinions Expert opinions Social influencers Social influencers Online sources Online sources Market communications Market communications

Criteria Selection Are Consumers Accurate in their Assessment? Are Consumers Accurate in their Assessment? Judgments Judgments Issues that affect judgments Issues that affect judgments Just noticeable difference Just noticeable difference Brand variants Brand variants Attribute correlation Attribute correlation Quality perceptions Quality perceptions Objective Objective Perceived Perceived Brand name Brand name

Criteria Selection How many criteria are necessary? How many criteria are necessary? 10 products & 15 attributes 10 products & 15 attributes What if missing information? What if missing information? How to decide what criteria to use? How to decide what criteria to use?

Consumer Choice Decision Rules Decision Rules Compensatory rules Compensatory rules Noncompensatory rules Noncompensatory rules Conjunctive Conjunctive Disjunctive Disjunctive Lexicographic Lexicographic Elimination-by-aspects Elimination-by-aspects Usage Usage Retail outlet selection Retail outlet selection Trends Trends