Chapter 5 Evaluating and Selecting
Alternatives
• The nature of evaluative criteria
• Tools to measurement evaluative criteria
• Consumers’ individual judgments are not
necessarily accurate
• Role of surrogate indicators
• Types of decision rules consumers may apply
• Implications of evaluative criteria for marketing
strategy
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PPTs t/a Consumer Behaviour 4e by Neal, Quester, Hawkins
5–1
Evaluation of Alternatives
• Evaluation criteria
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–
–
price
brand name
country of origin
• Determinants of criteria
• Measurement of evaluation criteria
–
–
–
identify important criteria
perception of each product for these
alternative performance of each product
Copyright  2004 McGraw-Hill Australia Pty Ltd
PPTs t/a Consumer Behaviour 4e by Neal, Quester, Hawkins
5–2
Evaluation of Alternatives (cont.)
• Determining the alternatives
• Evaluating alternatives
• Selecting a decision rule
–
–
–
–
non-compensatory
compensatory
constructive
phased
• Marketing implications
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PPTs t/a Consumer Behaviour 4e by Neal, Quester, Hawkins
5–3
Consumer Decision Process
5–4
Alternative Evaluation and
Selection Process
5–5
The Measurement of
Evaluative Criteria
• Before a strategy is developed, the marketing
manager must know:
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–
–
Which evaluative criteria are used by the consumer
How the consumer perceives alternative products in terms
of each criterion
The relative importance of each criterion
Copyright  2004 McGraw-Hill Australia Pty Ltd
PPTs t/a Consumer Behaviour 4e by Neal, Quester, Hawkins
5–6
Determining which Evaluative
Criteria are Used
• Direct methods
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–
–
Asking consumers
Focus groups
Observation
• Indirect methods
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–
Projective techniques
Perceptual mapping
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PPTs t/a Consumer Behaviour 4e by Neal, Quester, Hawkins
5–7
Perceived Performance of
Six Television Sets
5–8
Importance of Evaluative
Criteria to Buyers
5–9
Perceptual Mapping of Soap Brands
5–10
Uses of Perceptual Mapping
• We use this method to help us understand
consumers’ perceptions and the evaluative criteria
they use
• We can use this information to determine:
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–
–
How different brands are positioned according to
evaluative criteria
How the positions of brands change in response to
marketing efforts
How to position new products using evaluative criteria
Copyright  2004 McGraw-Hill Australia Pty Ltd
PPTs t/a Consumer Behaviour 4e by Neal, Quester, Hawkins
5–11
Determining Consumers’ Judgments
of Brand Performance in Terms of
Specific Evaluative Criteria
• Rank-ordering scales
• Sematic-differential scales
• Likert scales
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PPTs t/a Consumer Behaviour 4e by Neal, Quester, Hawkins
5–12
Determining the Relative Importance of
Evaluative Criteria
•
Direct methods
– Constant sum
5–13
Determining the Relative Importance
of Evaluative Criteria (cont.)
• Indirect methods
–
Conjoint analysis
–
A technique that provides data on the structure of
consumers’ preferences for product features and their
willingness to trade one feature for more of another.
Copyright  2004 McGraw-Hill Australia Pty Ltd
PPTs t/a Consumer Behaviour 4e by Neal, Quester, Hawkins
5–14
Application of Conjoint Analysis
5–15
Using Conjoint Analysis to Determine the
Importance of Evaluative Criteria
5–16
Individual Judgment and
Evaluative Criteria
• The accuracy of individual judgments
–
Use of a surrogate indicator
–
Sensory discrimination
–
Just-noticeable difference
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PPTs t/a Consumer Behaviour 4e by Neal, Quester, Hawkins
5–17
Use of Surrogate Indicators
• Consumers frequently use an observable attribute
of a product to indicate the performance of the
product on a less observable attribute
–
Reliance depends on:


Predictive value
Confidence value
Copyright  2004 McGraw-Hill Australia Pty Ltd
PPTs t/a Consumer Behaviour 4e by Neal, Quester, Hawkins
5–18
Use of Surrogate Indicators (cont.)
• Price
• Brand
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PPTs t/a Consumer Behaviour 4e by Neal, Quester, Hawkins
5–19
Use of Price to Indicate the Quality of Jewellery
5–20
Evaluative Criteria, Individual
Judgments and Marketing Strategy
• Consumers use surrogate indicators
–
Marketers can ensure that their products are superior for
these criteria by




Making direct reference to them in ads
Using brand names
Using celebrity endorsement
Using country-of-origin
Copyright  2004 McGraw-Hill Australia Pty Ltd
PPTs t/a Consumer Behaviour 4e by Neal, Quester, Hawkins
5–21
Use of Celebrity Endorsement
5–22
Use of Country of Origin
5–23
Decision Rules Used by Consumers
• Conjunctive
• Disjunctive
• Elimination-by-aspects
• Lexicographic
• Compensatory
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PPTs t/a Consumer Behaviour 4e by Neal, Quester, Hawkins
5–24
Decision Rules Used by Consumers (cont.)
5–25
Summary of the Decision Rules
1. Conjunctive
–
brands that meet a minimum level on each evaluative
criterion
2. Disjunctive
–
brands that meet a satisfactory level on any relevant
evaluative criteria
3. Elimination-by-aspects
–
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rank brands on evaluative criteria
select highest ranking brands until only one is left
4. Lexicographic
–
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rank brands on evaluative criteria importance
select the one that is highest on most important criteria
5. Compensatory
–
Select brand that has the highest score over all the relevant
evaluative criteria
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PPTs t/a Consumer Behaviour 4e by Neal, Quester, Hawkins
5–26
Understanding Target Buyers’ Decision
Rules to Achieve Product Positioning
5–27
Alternative Decision Rules and
Selection of a Television Set
5–28
Next Lecture…
Chapter 6:
Outlet Selection and Purchase
Copyright  2004 McGraw-Hill Australia Pty Ltd
PPTs t/a Consumer Behaviour 4e by Neal, Quester, Hawkins
5–29