Decision-Making II: Decision-Making II: Alternative Evaluation & Alternative Evaluation &

ChoiceChoiceChapter 12Chapter 12

Evaluations of Alternative ChoicesEvaluations of Alternative Choices

Evaluative criteriaEvaluative criteria FeatureFeature

Performance characteristicPerformance characteristic BenefitBenefit

Results derived from that featureResults derived from that feature Determinant criteriaDeterminant criteria

Value & Alternative EvaluationValue & Alternative Evaluation

Role of valuesRole of values Hedonic and utilitarianHedonic and utilitarian

Bounded rationalityBounded rationality

Affect-based evaluationAffect-based evaluation

Attribute-based evaluationAttribute-based evaluation

Product CategorizationProduct Categorization

Consumers gather information, and must try to Consumers gather information, and must try to organize itorganize it

Product categoriesProduct categories Category levelsCategory levels

Various categoriesVarious categories Superordinate v. subordinateSuperordinate v. subordinate Perceptual v. underlyingPerceptual v. underlying SignalSignal

Criteria SelectionCriteria Selection

What determines what evaluative criteria are What determines what evaluative criteria are used?used? Situational influencersSituational influencers Product knowledgeProduct knowledge Expert opinionsExpert opinions Social influencersSocial influencers Online sourcesOnline sources Market communicationsMarket communications

Criteria SelectionCriteria Selection

Are Consumers Accurate in their Assessment?Are Consumers Accurate in their Assessment? JudgmentsJudgments Issues that affect judgmentsIssues that affect judgments

Just noticeable differenceJust noticeable difference Brand variantsBrand variants

Attribute correlationAttribute correlation Quality perceptionsQuality perceptions

ObjectiveObjective PerceivedPerceived

Brand nameBrand name

Criteria SelectionCriteria Selection

How many criteria are necessary?How many criteria are necessary? 10 products & 15 attributes10 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 ChoiceConsumer Choice

Decision RulesDecision Rules Compensatory rulesCompensatory rules Noncompensatory rulesNoncompensatory rules

ConjunctiveConjunctive DisjunctiveDisjunctive LexicographicLexicographic Elimination-by-aspectsElimination-by-aspects

UsageUsage Retail outlet selectionRetail outlet selection

TrendsTrends