Lecture Consumer behaviour: Chapter 5 - Cathy Neal, Pascale Quester, Del Hawkins

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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5–1


Evaluation of Alternatives
• Evaluation criteria
–
–
–

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

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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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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:
–
–
–

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

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5–6

Determining which Evaluative
Criteria are Used
• Direct methods
–
–
–

Asking consumers
Focus groups
Observation

• Indirect methods
–
–

Projective techniques
Perceptual mapping

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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:
–
–
–

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

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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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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.

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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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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

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5–18


Use of Surrogate Indicators (cont.)
• Price
• Brand

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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

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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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5–24

Decision Rules Used by Consumers (cont.)

5–25