CHAPTER 12 IN REVIEW Decision Making II: Alternative Evaluation and Choice Chapter Summary Glossary Terms Understand the difference between evaluative criteria and determinant criteria. The attributes that consumers consider when evaluating alternative solutions to a problem are evaluative criteria. These criteria include features or benefits associated with a potential solution. Determinant criteria are the factors that have the biggest impact on actual consumer choice. Both evaluative and determinant criteria influence decision making. Comprehend how value affects the evaluation of alternatives. Value is at the heart of the alternative evaluation process. Consumers seek benefits that are associated with a potential solution to a problem. Benefits come from the features or characteristics of the alternatives under consideration. From the value perspective, consumers seek solutions that will deliver benefits while minimizing associated costs. affect-based evaluation evaluative process wherein consumers evaluate products based on the overall feeling that is evoked by the alternative attribute correlation perceived relationship between product features attribute-based evaluation evaluative process wherein alternatives are evaluated across a set of attributes that are considered relevant to the purchase situation benefit perceived favorable results derived from a particular feature bounded rationality idea that consumers attempt to act rationally within their information processing constraints compensatory rule decision-making Explain the importance of product categorization in the evaluation of alternatives process. Categorization is important because product categories provide the framework from which consumers evaluate alternative solutions to a problem. When new information about a viable alternative is presented, this information is compared to information that is stored as knowledge in a consumer’s perceived product category. This information allows the consumer to make better inferences about the alternative solution. Subordinate determinant criteria criteria that are most carefully considered and directly related to the actual choice that is made Video Game Portable Console conjoint analysis technique used to develop an understanding of the attributes that guide consumer preferences by having consumers compare product preferences across varying levels of evaluative criteria and expected utility conjunctive rule noncompensatory decision rule where the option selected must surpass a minimum cutoff across all relevant attributes Superordinate and Subordinate Categorization Superordinate rule that allows consumers to select products that may perform poorly on one criterion by compensating for the poor performance on one attribute by good performance on another disjunctive rule noncompensatory decision rule where the option selected surpasses a relatively high cutoff point on any attribute Arcade elimination-by-aspects rule Features Price: Graphics: Resolution: Console Size: XBOX 360 Playstation 3 Nintendo Wii New Console Game Moderate Excellent 1080i Medium High Excellent 1080p Big Low Moderate 480p Very Small ? ? ? ? noncompensatory decision rule where the consumer begins evaluating options by first looking at the most important attribute and eliminating any option that does not meet a minimum cutoff point for that attribute and where subsequent evaluations proceed in order of importance until only one option remains evaluative criteria attributes that consumers consider when reviewing alternative solutions to a problem Visit 4ltrpress.cengage.com/cb for additional study tools. 79749_20_cir.indd 23 C H A P T E R T W E LV E D E C I S I ON M A K I N G I I : A LT E R N AT IVE E VA LU AT IO N A N D C H O IC E 12/7/09 11:41 AM Chapter 12 Decision Making II: Alternative Evaluation and Choice feature performance characteristic of an object judgments mental assessments of the presence of attributes and the consequences associated with those attributes lexicographic rule noncompensatory decision rule where the option selected is thought to perform best on the most important attribute noncompensatory rule decisionmaking rule in which strict guidelines are set prior to selection and any option that does not meet the guidelines is eliminated from consideration perceptual attributes attributes that are visually apparent and easily recognizable product categories mental repre- Distinguish between compensatory and noncompensatory rules that guide consumer choice. The attitude-toward-the-object model is a compensatory model. This type of model allows an alternative to be selected even if it performs poorly on a specific attribute. Noncompensatory models focus on strict guidelines that are set before alternative evaluation. The major noncompensatory rules are the conjunctive, disjunctive, lexicographic, and elimination-by-aspects rule. The conjunctive rule is a rule in which an option that is selected must surpass a minimum cutoff across all relevant attributes. The disjunctive rule is used when an option that surpasses a relatively high cutoff point on any attribute is selected. The lexicographic rule leads the consumer to select the option that performs best on the most important attribute. The elimination-by-aspects rule is used when the consumer begins evaluating options by first looking at the most important attribute and eliminating any option that does not meet a minimum cutoff point for that attribute. The process continues as the consumer considers the next most important attribute and so on, until only one option is left to be chosen. sentations of stored knowledge about groups of products signal attribute that consumer uses to infer something about another attribute underlying attributes attributes Noncompensatory Decision Approaches that are not readily apparent and can be learned only through experience or contact with the product Attribute Importance Chevy Aveo Belief Ratings Ford Focus Belief Ratings Honda Fit Belief Ratings Hyundai Accent Belief Ratings Gas mileage 10 5 7 9 8 Low price 9 8 6 7 10 Styling 8 9 8 4 4 Wa ra ty r n5 4 8 9 8 Service 6 5 6 7 3 Handling 7 6 5 3 3 Note: Belief ratings are performance judgments scaled from 1 = very poor to 9 = very good. Importance ratings are scaled so that 10 = most important, 9 = next most important, and so on. Source: Wright, Peter (1975), “Consumer Choice Strategies: Simplifying Vs. Optimizing,” Journal of Marketing Research, 12 (1), 60–67. CHAP TER TW ELVE 79749_20_cir.indd 24 DE CISION M AKING II: ALT E RNAT IV E E VALUAT ION A N D C H OI C E Visit 4ltrpress.cengage.com/cb for additional study tools. 12/7/09 11:41 AM