PART ONE Introduction Chapter One Consumer Behavior and Marketing Strategy PART TWO External Influences Chapter Two Cross-Cultural Variations in Consumer Behavior Chapter Three The Changing American Society: Values Chapter Four The Changing American Society: Demographics and Social Stratification Chapter Five The Changing American Society: Subcultures Chapter Six The American Society: Families and Households Chapter Seven Group Influences on Consumer Behavior PART TWO Cases Cases 2–1 through 2–9 PART THREE Internal Influences Chapter Eight Perception Chapter Nine Learning, Memory, and Product Positioning Chapter Ten Motivation, Personality, and Emotion Chapter Eleven Attitudes and Influencing Attitudes Chapter Twelve Self-Concept and Lifestyle PART THREE Cases Cases 3–1 through 3–9 PART FOUR Consumer Decision Process Chapter Thirteen Situational Influences Chapter Fourteen Consumer Decision Process and Problem Recognition Chapter Fifteen Information Search Chapter Sixteen Alternative Evaluation and Selection Chapter Seventeen Outlet Selection and Purchase Chapter Eighteen Postpurchase Processes, Customer Satisfaction, and Customer Commitment PART FOUR Cases Cases 4–1 through 4–7 PART FIVE Organizations as Consumers Chapter Nineteen Organizational Buyer Behavior PART FIVE Cases Cases 5–1 and 5–2 PART SIX Consumer Behavior and Marketing Regulation Chapter Twenty Marketing Regulation and Consumer Behavior PART SIX Cases Cases 6–1 and 6–2 Appendix A Consumer Research Methods Appendix B Consumer Behavior Audit
CHAPTER 16 Alternative Evaluation and Selection McGraw-Hill/Irwin Copyright © 2013 by The McGraw-Hill Companies, Inc All rights reserved PART IV: CONSUMER DECISION PROCESS 16-2 Learning Objectives L0 L0 L0 L0 L0 Discuss how actual consumer choice often differs from rational choice theory Summarize the types of choice processes consumers engage in Explain evaluative criteria and their measurement Describe the role of evaluative criteria in consumer judgment and marketing strategy Summarize the five decision rules for attribute-based choice and their strategic relevance 16-3 Consumer Behavior In The News… Amazon is coming up with simpler packaging that uses less plastic and wire This makes it cheaper for Amazon, better for the environment, and easier for consumers to open Which are the features and which are the benefits? Features: Benefits: Which will sell better? Source: T Iezzi, “Amazon One-Ups Santa Claus with Frustration-Free Packaging,” Advertising Age, November 17, 2008, p 17 16-4 Consumer Behavior In The News… Which are the features and which are the benefits? Features: less plastic and wire Benefits: cheaper, green, easier to open Which will sell better? If you said Benefits you are correct! Direct consumer benefits key…green is indirect and many don’t care Has been labeled “Frustration-Free Packaging” to emphasize the direct consumer benefit Source: T Iezzi, “Amazon One-Ups Santa Claus with Frustration-Free Packaging,” Advertising Age, November 17, 2008, p 17 16-5 Consumer Choice and Types of Choice Processes 16-6 Consumer Choice and Types of Choice Processes An Examination of Rational Choice Theory Assumption: Consumers seek one optimal solution to a problem and choose on that basis • Reality: Consumers have all sorts of “metagoals” that are different from this Assumption: Consumers have the skill and motivation to find the optimal solution • Reality: Consumers often lack both the skill or motivation to so Assumption: The optimal solution does not change as a function of situational factors such as time pressure, task definition, or competitive context • Reality: Context effects are common 16-7 Consumer Choice and Types of Choice Processes Three types of consumer choice processes: Affective Choice Attitude-Based Choice Attribute-Based Choice 16-8 Consumer Choice and Types of Choice Processes Affective Choice Affective choices tend to be more holistic Brand not decomposed into distinct components for separate evaluation Evaluations generally focus on how they will make the user feel as they are used Choices are often based primarily on the immediate emotional response to the product or service 16-9 Video Application The following Video Clip demonstrates how Holiday Inn Express tries to encourage affective choice by advertising the product in a “promotionfocused” way by keying in on the brand as a “smart” choice! 16-10 Evaluative Criteria Determination of the Relative Importance of Evaluative Criteria The importance assigned to evaluative criteria can be measured either by direct or by indirect methods The constant sum scale is the most common direct method Conjoint Analysis is the most common indirect method 16-19 Individual Judgment and Evaluative Criteria Accuracy of Individual Judgments Use of Surrogate Indicators The Relative Importance and Influence of Evaluative Criteria Evaluative Criteria, Individual Judgments, and Marketing Strategy 16-20 Decision Rules for Attribute-Based Choices Conjunctive Rule Disjunctive Rule Elimination-by-Aspects Rule Non-compensatory Lexicographic Rule Compensatory Rule 16-21 Decision Rules for Attribute-Based Choices Conjunctive Rule: Establishes minimum required performance for each evaluative criterion Selects the first (or all) brand(s) that meet or exceed these minimum standards If minimum performance was: Price Weight Processor Battery life After-sale support Display quality 16-22 Decision Rules for Attribute-Based Choices Conjunctive Rule Lenovo, Acer, Dell, and Toshiba are eliminated because they fail to meet all the minimum standards Minimum 3 16-23 Decision Rules for Attribute-Based Choices Disjunctive Rule: Price Establishes a minimum required performance for each important attribute (often a high level) Weight Processor Not critical All brands that meet or exceed the performance level for any key attribute are acceptable If minimum performance was: Battery life Not critical After-sale support Not critical Display quality 16-24 Decision Rules for Attribute-Based Choices Disjunctive Rule Acer, Compaq, and Dell meet minimum for at least one important criterion and thus are acceptable Minimum 5 16-25 Decision Rules for Attribute-Based Choices Elimination-by-Aspects Rule First, evaluative criteria ranked in terms of importance Second, cutoff point for each criterion is established Finally (in order of attribute importance) brands are eliminated if they fail to meet or exceed the cutoff If rank and cutoff were: Rank Cutoff Price Weight Display quality Processor After-sale support Battery life 16-26 Decision Rules for Attribute-Based Choices Elimination-by-Aspects Rule Step 1: Price eliminates Lenovo and Toshiba Step 2: Weight eliminates Acer Step 3: Of remaining brands (HP, Compaq, Dell), only Dell meets or exceeds display quality minimum Minimum 4 3 16-27 Decision Rules for Attribute-Based Choices Lexicographic Decision Rule Consumer ranks the criteria in order of importance Then selects brand that performs best on the most important attribute If two or more brands tie, they are evaluated on the second most important attribute This continues through the attributes until one brand outperforms the others Acer would be chosen because it performs best on Price, our consumer’s most important attribute 16-28 Decision Rules for Attribute-Based Choices Compensatory Decision Rule The compensatory decision rule states that the brand that rates highest on the sum of the consumer’s judgments of the relevant evaluative criteria will be chosen 16-29 Decision Rules for Attribute-Based Choices Compensatory Decision Rule Assume the following importance weights: Using this rule, Dell has the highest preference and would be chosen The calculation for Dell is: Importance Score Price 30 Weight 25 Processor Battery life 10 05 After-sale support 10 Display quality 20 Total 100 16-30 Decision Rules for Attribute-Based Choices Summary of Resulting Choices from Different Decision Rules 16-31 Situational Influences on Consumer Choice Choices are not independent of the competitive situation, an effect sometimes called context effects One such effect is when an additional competitor makes an existing competitor appear to be the “compromise” option Choice of the compromise brand increases even though: a)Consumers are still using the same decision rule (compensatory) b)The compromise brand’s attribute levels have not changed 16-32 Situational Influences on Consumer Choice Compromise Effect 16-33 ... underlying consumer evaluations of brand similarity 16- 16 Evaluative Criteria Perceptual Mapping of Beer Brand Perception 16- 17 Evaluative Criteria Determination of Consumers’ Judgments of Brand Performance... common 16- 7 Consumer Choice and Types of Choice Processes Three types of consumer choice processes: Affective Choice Attitude-Based Choice Attribute-Based Choice 16- 8 Consumer Choice and Types... is made, and it involves attributeby-attribute comparisons across brands 16- 12 Applications in Consumer Behavior The Eton Radio ad provides consumers all the great features of its radio and uses