Chapter 3
Chapter Spotlights
Alternative evaluation
Consumer benefits and evaluative criteria
Consumer decision rules and heuristics
Planned versus unplanned purchasing
Outlet selection
Outlet image
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
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
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
decision-making process:
Problem recognition Information Search Alternative evaluation Choice
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
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
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
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”)
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
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
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.
Choice – Purchase
Situations
Four types of purchase situation:
Specifically planned
Generally planned
Substitute
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.
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
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
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
Choice
Outlet selection or brand choice, which comes
first?
Brand choice first
Brand loyalty
No outlet loyalty or preference
No need for the expertise of salespeople (knowledgeable
consumers)
Outlet choice first
High store loyalty or preference
Low brand loyalty
Need for helpful sales staff
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
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
Consumer Choice and
Shopping Behavior
Why do people shop?
Personal and social motives
How do people shop?
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
