Directory UMM :Data Elmu:ppt:
Chapter 3
Alternative Evaluation and
Choice
Copyright Atomic Dog Publishing, 2002
Chapter Spotlights
Alternative evaluation
Consumer benefits and evaluative criteria
Consumer decision rules and heuristics
Planned versus unplanned purchasing
Outlet selection
Outlet image
Consumer choice and shopping behavior
Copyright Atomic Dog Publishing, 2002
Consumer Evaluation Sets
Universal set: all product classes and/or
all brand alternatives (and outlets) with
reasonable marketplace access whether
the consumer is aware of them or not
Retrieval set: subset of universal set that
consumers can bring up from memory
Consideration set: subset of retrieval set
from which the consumer intends to
make a selection
Copyright Atomic Dog Publishing, 2002
Evaluative Criteria
Evaluative criteria: the means by
which consumers compare product
classes, brands, vendors, etc.
Tangible: benefits based on such things
as price, color, size, shape, performance
Intangible: benefits based on such
things as brand image, ownership
feelings
Copyright Atomic Dog Publishing, 2002
Alternative Evaluation
The process through which we compare
and contrast different solutions to the
same marketplace problem.
It is the third step in the consumer decisionmaking process:
Problem recognition
Information Search
Alternative evaluation
Choice
Outcomes
Copyright Atomic Dog Publishing, 2002
Evaluative Criteria
Typically, consumers use from four to
six criteria.
The more important the purchase
and/or the greater experience a
consumer has with the product class,
the greater the number of criteria used.
Criteria may be used in combination.
The more important the decision, the
fewer are the acceptable alternatives.
Copyright Atomic Dog Publishing, 2002
What Is the Relative
Importance of Each
Criterion?
Importance = salience
Evaluative criteria salience varies by
product, situation, and person
Determining relative importance –
the “100 points” rule; ask
consumers to distribute 100
“importance points” among criteria
based on relative importance (see
Exhibit 3-1)
Copyright Atomic Dog Publishing, 2002
Country of Origin, Price,
and Brand, as Evaluative
Criteria
Country of origin is used to signal product
quality
Use of price as criterion varies across
product categories:
Acceptable price range is determined by past
purchases; perception of benefits vs. costs
indicates value; and the buying situation.
Brand reputation
Brand may be viewed as an indicator of quality
and/or consistency of satisfaction - lessening
risk.
Copyright Atomic Dog Publishing, 2002
Consumer Decision Rules
How consumers evaluate and choose products
and services in different buying situations.
Rules are used consciously or unconsciously
Three types of rules
Noncompensatory rule: one in which the
weaknesses of an alternative are not offset by its
strengths (not designed to find “winners”)
Compensatory rule: allowing for trade-offs among
strengths and weaknesses (find “winners”)
Decision heuristics: these are rules of thumb or
short cuts that allow quick decision-making
Copyright Atomic Dog Publishing, 2002
Noncompensatory Rules
Disjunctive: decide which criteria are determinant
(or not) and then establish a minimum score for
each one. Meet minimum “in” do not “out”
Conjunctive: consider all criteria as determinant
and then establish a minimum acceptable score
for each one. Meet all minima “in” otherwise
“out”
Lexicographic: rank each of the evaluative criteria
in order of importance; compare alternatives on
most important with highest score winning; if tie
for high score those tied evaluated on second
most important criterion, etc., until “winner” is
found
Copyright Atomic Dog Publishing, 2002
Compensatory Rules
Simple additive: total scores on all
evaluative criteria for each alternative and
the highest score wins (assumes all criteria
of equal importance)
Weighted additive: assign relative weight to
each criterion based on perceived
importance and then multiply the score by
the relative weight to arrive at a weighted
score, sum scores, highest weighted score
wins
Copyright Atomic Dog Publishing, 2002
Decision Heuristics
Mental rules of thumb or shortcuts that help
consumers reach decisions quickly and
efficiently.
Examples:
Price: “the higher the price the better the quality”
Brand reputation: if it’s brand X, it must be good
(or bad)
Key product features: if a used car has a clean
interior, a buyer may also infer a mechanically
sound vehicle.
Market beliefs
Copyright Atomic Dog Publishing, 2002
Choice – Purchase
Situations
Four types of purchase situation:
Specifically planned
Generally planned
Substitute
Unplanned
Copyright Atomic Dog Publishing, 2002
Planned Purchasing
Behavior
Understanding “buying intention” is key to
predicting and potentially influencing
planned behavior
Measuring purchasing intention can be done:
Measures of intention may not provide accurate
results since situational influences change
The method of questioning may be flawed itself.
(A solution: “Yes” or “No” about doing something;
then determine probability of doing this)
Copyright Atomic Dog Publishing, 2002
Intervention of Planned
Purchases
Intervening variables: changes that
may have an impact on the actual
purchase behavior
Financial status, employment situation,
family or household size, weather, etc.
Deliberation: the longer we put off a
purchase the higher the likelihood that
either the purchase will not be made or
the choice will change.
Copyright Atomic Dog Publishing, 2002
Unplanned Purchasing
Behavior
Four types of unplanned purchases
Pure impulse: those that are bought for the
sake of novelty
Reminder impulse: are routine purchases,
albeit unanticipated.
Suggestion impulse: when a product (not
previously seen) stimulates immediate need
recognition
Planned impulse: responding to a special
incentive to buy an item considered in the
past but not selected
Copyright Atomic Dog Publishing, 2002
How do Marketers
Encourage Unplanned
Purchases?
Point-of-purchase displays
Reduced prices
In-store coupons or specials (Kmart’s
Blue Light specials)
Multiple-item discounts
Packaging
In-store demonstrations
Store atmosphere
Salespeople
Copyright Atomic Dog Publishing, 2002
Choice
Outlet selection or brand choice, which comes
first?
Brand choice first
Outlet choice first
Brand loyalty
No outlet loyalty or preference
No need for the expertise of salespeople (knowledgeable
consumers)
High store loyalty or preference
Low brand loyalty
Need for helpful sales staff
Brand and outlet working together
Find the best fit for the consumer’s self image
Copyright Atomic Dog Publishing, 2002
Outlet Image and Choice
Image: the sum total
of various functional
and psychological
outlet attributes
Functional attributes:
merchandise, prices,
credit policies, store
layout, etc.
Psychological
attributes: sense of
belonging, feeling of
warmth or
excitement, etc.
Copyright Atomic Dog Publishing, 2002
Outlet Image (continued)
Retailers (stores, catalogs, Web
sites, etc.) use attributes that imply
certain benefits to attempt to create
an image that appeals to their
target market(s)
Influences on outlet choice include the
level of involvement, perceived risk,
advertising, prices, and outlet size.
Copyright Atomic Dog Publishing, 2002
Consumer Choice and
Shopping Behavior
Why do people shop?
How do people shop?
Personal and social motives
Shopping orientation: their style or way of
shopping
Choice decision during the shopping
process:
Which product to buy, how many, which brands
to buy, which outlet to use, when to buy, how to
pay, and other (should we buy extended
warranty)?
Copyright Atomic Dog Publishing, 2002
Alternative Evaluation and
Choice
Copyright Atomic Dog Publishing, 2002
Chapter Spotlights
Alternative evaluation
Consumer benefits and evaluative criteria
Consumer decision rules and heuristics
Planned versus unplanned purchasing
Outlet selection
Outlet image
Consumer choice and shopping behavior
Copyright Atomic Dog Publishing, 2002
Consumer Evaluation Sets
Universal set: all product classes and/or
all brand alternatives (and outlets) with
reasonable marketplace access whether
the consumer is aware of them or not
Retrieval set: subset of universal set that
consumers can bring up from memory
Consideration set: subset of retrieval set
from which the consumer intends to
make a selection
Copyright Atomic Dog Publishing, 2002
Evaluative Criteria
Evaluative criteria: the means by
which consumers compare product
classes, brands, vendors, etc.
Tangible: benefits based on such things
as price, color, size, shape, performance
Intangible: benefits based on such
things as brand image, ownership
feelings
Copyright Atomic Dog Publishing, 2002
Alternative Evaluation
The process through which we compare
and contrast different solutions to the
same marketplace problem.
It is the third step in the consumer decisionmaking process:
Problem recognition
Information Search
Alternative evaluation
Choice
Outcomes
Copyright Atomic Dog Publishing, 2002
Evaluative Criteria
Typically, consumers use from four to
six criteria.
The more important the purchase
and/or the greater experience a
consumer has with the product class,
the greater the number of criteria used.
Criteria may be used in combination.
The more important the decision, the
fewer are the acceptable alternatives.
Copyright Atomic Dog Publishing, 2002
What Is the Relative
Importance of Each
Criterion?
Importance = salience
Evaluative criteria salience varies by
product, situation, and person
Determining relative importance –
the “100 points” rule; ask
consumers to distribute 100
“importance points” among criteria
based on relative importance (see
Exhibit 3-1)
Copyright Atomic Dog Publishing, 2002
Country of Origin, Price,
and Brand, as Evaluative
Criteria
Country of origin is used to signal product
quality
Use of price as criterion varies across
product categories:
Acceptable price range is determined by past
purchases; perception of benefits vs. costs
indicates value; and the buying situation.
Brand reputation
Brand may be viewed as an indicator of quality
and/or consistency of satisfaction - lessening
risk.
Copyright Atomic Dog Publishing, 2002
Consumer Decision Rules
How consumers evaluate and choose products
and services in different buying situations.
Rules are used consciously or unconsciously
Three types of rules
Noncompensatory rule: one in which the
weaknesses of an alternative are not offset by its
strengths (not designed to find “winners”)
Compensatory rule: allowing for trade-offs among
strengths and weaknesses (find “winners”)
Decision heuristics: these are rules of thumb or
short cuts that allow quick decision-making
Copyright Atomic Dog Publishing, 2002
Noncompensatory Rules
Disjunctive: decide which criteria are determinant
(or not) and then establish a minimum score for
each one. Meet minimum “in” do not “out”
Conjunctive: consider all criteria as determinant
and then establish a minimum acceptable score
for each one. Meet all minima “in” otherwise
“out”
Lexicographic: rank each of the evaluative criteria
in order of importance; compare alternatives on
most important with highest score winning; if tie
for high score those tied evaluated on second
most important criterion, etc., until “winner” is
found
Copyright Atomic Dog Publishing, 2002
Compensatory Rules
Simple additive: total scores on all
evaluative criteria for each alternative and
the highest score wins (assumes all criteria
of equal importance)
Weighted additive: assign relative weight to
each criterion based on perceived
importance and then multiply the score by
the relative weight to arrive at a weighted
score, sum scores, highest weighted score
wins
Copyright Atomic Dog Publishing, 2002
Decision Heuristics
Mental rules of thumb or shortcuts that help
consumers reach decisions quickly and
efficiently.
Examples:
Price: “the higher the price the better the quality”
Brand reputation: if it’s brand X, it must be good
(or bad)
Key product features: if a used car has a clean
interior, a buyer may also infer a mechanically
sound vehicle.
Market beliefs
Copyright Atomic Dog Publishing, 2002
Choice – Purchase
Situations
Four types of purchase situation:
Specifically planned
Generally planned
Substitute
Unplanned
Copyright Atomic Dog Publishing, 2002
Planned Purchasing
Behavior
Understanding “buying intention” is key to
predicting and potentially influencing
planned behavior
Measuring purchasing intention can be done:
Measures of intention may not provide accurate
results since situational influences change
The method of questioning may be flawed itself.
(A solution: “Yes” or “No” about doing something;
then determine probability of doing this)
Copyright Atomic Dog Publishing, 2002
Intervention of Planned
Purchases
Intervening variables: changes that
may have an impact on the actual
purchase behavior
Financial status, employment situation,
family or household size, weather, etc.
Deliberation: the longer we put off a
purchase the higher the likelihood that
either the purchase will not be made or
the choice will change.
Copyright Atomic Dog Publishing, 2002
Unplanned Purchasing
Behavior
Four types of unplanned purchases
Pure impulse: those that are bought for the
sake of novelty
Reminder impulse: are routine purchases,
albeit unanticipated.
Suggestion impulse: when a product (not
previously seen) stimulates immediate need
recognition
Planned impulse: responding to a special
incentive to buy an item considered in the
past but not selected
Copyright Atomic Dog Publishing, 2002
How do Marketers
Encourage Unplanned
Purchases?
Point-of-purchase displays
Reduced prices
In-store coupons or specials (Kmart’s
Blue Light specials)
Multiple-item discounts
Packaging
In-store demonstrations
Store atmosphere
Salespeople
Copyright Atomic Dog Publishing, 2002
Choice
Outlet selection or brand choice, which comes
first?
Brand choice first
Outlet choice first
Brand loyalty
No outlet loyalty or preference
No need for the expertise of salespeople (knowledgeable
consumers)
High store loyalty or preference
Low brand loyalty
Need for helpful sales staff
Brand and outlet working together
Find the best fit for the consumer’s self image
Copyright Atomic Dog Publishing, 2002
Outlet Image and Choice
Image: the sum total
of various functional
and psychological
outlet attributes
Functional attributes:
merchandise, prices,
credit policies, store
layout, etc.
Psychological
attributes: sense of
belonging, feeling of
warmth or
excitement, etc.
Copyright Atomic Dog Publishing, 2002
Outlet Image (continued)
Retailers (stores, catalogs, Web
sites, etc.) use attributes that imply
certain benefits to attempt to create
an image that appeals to their
target market(s)
Influences on outlet choice include the
level of involvement, perceived risk,
advertising, prices, and outlet size.
Copyright Atomic Dog Publishing, 2002
Consumer Choice and
Shopping Behavior
Why do people shop?
How do people shop?
Personal and social motives
Shopping orientation: their style or way of
shopping
Choice decision during the shopping
process:
Which product to buy, how many, which brands
to buy, which outlet to use, when to buy, how to
pay, and other (should we buy extended
warranty)?
Copyright Atomic Dog Publishing, 2002