Chapter 16

Chapter 16 - CHAPTER CHAPTER 16 ALTERNATIVE ALTERNATIVE...

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Unformatted text preview: CHAPTER CHAPTER 16 ALTERNATIVE ALTERNATIVE EVALUATION AND SELECTION SELECTION 16-1 Consumer Behavior In The News… Consumer Amazon is coming up with simpler packaging that Amazon uses less plastic and wire. uses This makes it cheaper for Amazon, better for the This environment, and easier for consumers to open. environment, Which are the features and which are the benefits? Which Features: Benefits: Which will sell better? Source: T. Iezzi, “Amazon One-Ups Santa Claus with Frustration-Free Packaging,” Advertising Age, November 17, 2008, p. 17 16-2 Consumer Behavior In The News… Consumer Which are the features and which are the benefits? Which Features: less plastic and wire Benefits: cheaper, green, easier to open Benefits: cheaper, Which will sell better? If you said Benefits you are correct! Direct consumer benefits key…green is indirect Direct and many don’t care. and Has been labeled “Frustration-Free Packaging” Has to emphasize the direct consumer benefit. to Source: T. Iezzi, “Amazon One-Ups Santa Claus with Frustration-Free Packaging,” Advertising Age, November 17, 2008, p. 17 16-3 Alternative Evaluation and Selection Alternative 16-4 How Consumers Make Choices How In reality, all consumers have bounded rationality A limited capacity for processing information. Consumers also often have goals that are different from, or in addition to, selecting the optimal alternative. A metagoal refers to the general nature of the metagoal outcome being sought. 16-5 How Consumers Make Choices How Metagoals in Decision Making • Maximize the accuracy of the decision Maximize • Minimize the cognitive effort required for the decision Minimize • Minimize the experience of negative emotion Minimize • Maximize the ease of justifying the decision Maximize 16-6 How Consumers Make Choices How Three types of consumer choice processes: 1. Affective Choice 2. Attitude-Based Choice 3. Attribute-Based Choice 16-7 How Consumers Make Choices How 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. 16-8 How Consumers Make Choices How Attribute- versus Attitude-Based Choice Processes Attribute-Based Choice Attribute-Based •Requires the knowledge of specific attributes at the time the choice is made, and it involves attribute-byattribute comparisons across brands. Attitude-Based Choice Attitude-Based •Involves the use of general attitudes, summary impressions, intuitions, or heuristics; no attribute-byattribute comparisons are made at the time of choice. 16-9 How Consumers Make Choices How The Eton Radio ad provides consumers all the great features of its radio and uses the tag line “Tune in: to independence.” This is an example of attribute-based decision making. ©2008 Eaton Corporation. All rights reserved. 16-10 Evaluative Criteria Evaluative 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 16-11 Evaluative Criteria Evaluative 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 16-12 Evaluative Criteria Evaluative 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 - allow the respondent to indicate the criteria someone else might use. Perceptual mapping - researcher uses judgment to determine dimensions underlying consumer evaluations of brand similarity. 16-13 Evaluative Criteria Evaluative Perceptual Mapping of Beer Brand Perception 16-14 Evaluative Criteria Evaluative Determination of Consumers’ Judgments of Brand Performance on Specific Evaluative Criteria Performance Measuring consumer judgments of brand performance on specific attributes can include: Rank ordering scales Semantic Differential Scales Likert Scales 16-15 Evaluative Criteria Evaluative Determination of the Relative Importance of Determination Evaluative Criteria Evaluative The importance assigned to evaluative criteria can be measured either by direct or by indirect methods. direct indirect The constant sum scale is the most common direct method. Conjoint Analysis is the most common indirect method. 16-16 Individual Judgment and Evaluative Criteria Criteria Accuracy of Individual Judgments Use of Surrogate Indicators The Relative Importance and Influence of The Evaluative Criteria Evaluative Evaluative Criteria, Individual Judgments, and Evaluative Marketing Strategy Marketing 16-17 Decision Rules for Attribute-Based Choices Choices Conjunctive Rule Disjunctive Rule Non-compensatory Elimination-by-Aspects Rule Lexicographic Rule Compensatory Rule 16-18 Decision Rules for Attribute-Based Choices Choices Conjunctive Rule: Establishes minimum required performance for each evaluative criterion. Selects the first (or all) brand(s) that meet or exceed these minimum standards. If minimum performance was: 16-19 Price Weight Processor Battery life After-sale support Display quality 3 4 3 1 2 3 Decision Rules for Attribute-Based Choices Choices Conjunctive Rule Lenovo, Acer, Dell, and Toshiba are eliminated because they fail to meet all the minimum standards. Minimum 3 4 3 1 2 3 16-20 Decision Rules for Attribute-Based Choices 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: 16-21 Price Weight Processor Battery life After-sale support Display quality 5 5 Not critical Not critical Not critical 5 Decision Rules for Attribute-Based Choices Choices Disjunctive Rule Acer, Compaq, and Dell meet minimum for at least one important criterion and thus are acceptable. Minimum 5 5 5 16-22 Decision Rules for Attribute-Based Choices Choices Elimination-by-Aspects Rule First, evaluative criteria ranked in terms of importance Second, 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. If rank and cutoff were: 16-23 Rank Price Weight Display quality Processor After-sale After-sale support support Battery life 1 2 3 4 5 6 Cutoff 3 4 4 3 3 3 Decision Rules for Attribute-Based Choices Choices Elimination-by-Aspects Rule Step 1: Price eliminates Lenovo and Toshiba Step 2: Weight eliminates Acer Step 3: Of remaining brands (HP, Compaq, Dell), only Dell meets or exceeds display quality minimum. Minimum 3 4 3 3 3 4 16-24 Decision Rules for Attribute-Based Choices 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. Acer would be chosen because it performs best on Price, our consumer’s most important attribute. 16-25 Decision Rules for Attribute-Based Choices Choices Compensatory Decision Rule The compensatory decision rule states that the brand compensatory that rates highest on the sum of the consumer’s judgments of the relevant evaluative criteria will be chosen. 16-26 Decision Rules for Attribute-Based Choices Choices Compensatory Decision Rule Importance Score Importance Price 30 25 10 05 10 20 100 Assume the following importance weights: Using this rule, Dell has the highest preference and would be chosen. The calculation for Dell is: Weight Processor Battery life After-sale support Display quality Total 16-27 Decision Rules for Attribute-Based Choices Choices Summary of Resulting Choices from Different Summary Decision Rules Decision 16-28 ...
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This note was uploaded on 02/08/2011 for the course MKT 374 taught by Professor Watson during the Spring '10 term at Rutgers.

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