Consumer Behavior and

Building Marketing Strategy

Chapter 16
Alternative Evaluation and Selection

From: Consumer Behavior, 10th ed. By Hawkins, Mothersbaugh and Best

 Rational Choice Theory

Assumption 1 :
Consumers seek one optimal solution to a problem and choose on that
basis.

Assumption 2 :
Consumers have the skill and motivation to find the optimal solution.

Assumption 3 :
The optimal solution does not change as a function of situational
factors such as time pressure, task definition, or competitive context
How Consumers Make Choices
Three types of consumer choice processes:

1. Affective Choice

2. Attitude-Based Choice

3. Attribute-Based Choice

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How Consumers Make Choices
Affective Choice

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.

Choices are often based

primarily on the immediate
emotional response to the
product or service.
How Consumers Make Choices

Attribute- versus Attitude-Based Choice Processes

Attribute-Based Choice Attitude-Based Choice

•Requires the knowledge •Involves the use of
of specific attributes at general attitudes,
the time the choice is summary impressions,
made, and it involves intuitions, or heuristics; no
attribute-by-attribute attribute-by-attribute
comparisons across comparisons are made at
brands. the time of choice.
Alternative Evaluation and Selection
Evaluative Criteria
Nature of Evaluative 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

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Evaluative Criteria
Measurement of Evaluative Criteria

Involves a determination of:

 The Evaluative Criteria Used

 Judgments of Brand Performance on Specific Criteria

 The Relative Importance of Evaluative Criteria

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Evaluative Criteria
Determination of Which Evaluative Criteria Are Used

1. Direct methods include asking consumers what criteria

they use in a particular purchase.
2. Indirect techniques assume consumers will not or
cannot state their evaluative criteria.
• Projective techniques
• Perceptual mapping
Evaluative Criteria
Perceptual Mapping of Beer Brand Perception
Evaluative Criteria
Determination of Consumers’ Judgments of Brand
Performance on Specific Evaluative Criteria

Measuring consumer judgments of brand performance on specific

attributes can include:

Rank ordering scales

Semantic Differential Scales

Likert Scales
Evaluative Criteria
Determination of the Relative Importance of Evaluative Criteria

The importance assigned to evaluative criteria can be

measured 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.

Individual Judgment and Evaluative
Criteria
 Accuracy of Individual Judgments

 Use of Surrogate Indicators

 The Relative Importance and Influence of Evaluative Criteria

 Evaluative Criteria, Individual Judgments, and Marketing Strategy

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Decision Rules for Attribute-Based
Choices
 Conjunctive Rule

 Disjunctive Rule
Non-compensatory
 Elimination-by-Aspects Rule

 Lexicographic Rule

 Compensatory Rule

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Decision Rules for Attribute-Based
Choices
Conjunctive Rule

WinBook, Dell, IBM, and Toshiba are eliminated because they fail
to meet all the minimum standards.

Minimum
3
4
3
1
2
3
 Decision Rules for Attribute-Based
Choices

Disjunctive Rule:

Establishes a minimum required

performance for each important attribute Price 5
(often a high level). Weight 5
All brands that meet or exceed the Processor Not critical
performance level for any key attribute are
acceptable. Battery life Not critical
After-sale support Not critical
If minimum performance was:

Display quality 5
Decision Rules for Attribute-Based
Choices
Disjunctive Rule

WinBook, Compaq, and Dell meet minimum for at least one important
criterion and thus are acceptable.

Minimum
5
5
-
-
-
5
Decision Rules for Attribute-Based
Choices
Elimination-by-Aspects Rule

First, evaluative criteria Rank Cutoff

ranked in terms of importance Price 1 3
Weight 2 4
Second, cutoff point for each
Display quality 3 4
criterion is established.
Processor 4 3

Finally (in order of attribute After-sale 5 3

importance) brands are support

eliminated if they fail to meet Battery life 6 3

or exceed the cutoff.
Decision Rules for Attribute-Based
Choices
Elimination-by-Aspects Rule

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.

Minimum
3
4
3
3
3
4
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Decision Rules for Attribute-Based
Choices
Lexicographic Decision Rule

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.
Decision Rules for Attribute-Based
Choices
Compensatory Decision Rule

The 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.
 Decision Rules for Attribute-Based
Choices
Compensatory Decision Rule

Importance Score
Price 30
Assume the following Weight 25
importance weights: Processor 10
Battery life 05
Using this rule, Dell has After-sale support 10
the highest preference Display quality 20
and would be chosen. Total 100

The calculation for Dell is:

Decision Rules for Attribute-Based
Choices
Summary of Resulting Choices from Different Decision Rules