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

After gathering information, consumers then need to begin the process of making a decision about resolving their problem. In this chapter, we will examine the evaluative criteria used; the measurement aspects of evaluative criteria; note that consumers’ judgments can be inaccurate; and that as judgement is difficult, consumers use surrogate indicators; we’ll study the decision rules that may be used; and finally discuss how to utilise this knowledge to formulate marketing strategy.

Chapter 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  Copyright ª 2004 McGraw­Hill Australia Pty Ltd  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 Copyrightê2004McGrawưHillAustraliaPtyLtd 52 Evaluation of Alternatives (cont.) Determining the alternatives • Evaluating alternatives • Selecting a decision rule – – non-compensatory compensatory constructive phased Marketing implications Copyrightê2004McGrawưHillAustraliaPtyLtd 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  Copyright ª 2004 McGraw­Hill Australia Pty Ltd  5–6 Determining which Evaluative Criteria are Used • Direct methods – – – Asking consumers Focus groups Observation • Indirect methods – – Projective techniques Perceptual mapping  Copyright ª 2004 McGraw­Hill Australia Pty Ltd  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 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  Copyright ª 2004 McGraw­Hill Australia Pty Ltd  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 Copyrightê2004McGrawưHillAustraliaPtyLtd 518 Use of Surrogate Indicators (cont.) Price Brand Copyrightê2004McGrawưHillAustraliaPtyLtd 519 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  Copyright ª 2004 McGraw­Hill Australia Pty Ltd  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 Copyrightê2004McGrawưHillAustraliaPtyLtd 524 Decision Rules Used by Consumers (cont.) 5–25 Summary of the Decision Rules Conjunctive – brands that meet a minimum level on each evaluative criterion Disjunctive – brands that meet a satisfactory level on any relevant evaluative criteria Elimination-by-aspects rank brands on evaluative criteria – select highest ranking brands until only one is left – Lexicographic rank brands on evaluative criteria importance – select the one that is highest on most important criteria – Compensatory – Select brand that has the highest score over all the relevant evaluative criteria  Copyright ª 2004 McGraw­Hill Australia Pty Ltd  5–26 Understanding Target Buyers’ Decision Rules to Achieve Product Positioning 5–27 Alternative Decision Rules and Selection of a Television Set 5–28 Next Lecture… Chapter 6: Outlet Selection and Purchase  Copyright ª 2004 McGraw­Hill Australia Pty Ltd  5–29 ... endorsement Using country-of-origin  Copyright ª 2004 McGraw­Hill Australia Pty Ltd  5 21 Use of Celebrity Endorsement 5 22 Use of Country of Origin 5 23 Decision Rules Used by Consumers • Conjunctive... Conjunctive Disjunctive Elimination-by-aspects Lexicographic Compensatory Copyrightê2004McGrawưHillAustraliaPtyLtd 5 24 Decision Rules Used by Consumers (cont.) 5 25 Summary of the Decision Rules... implications  Copyright ª 2004 McGraw­Hill Australia Pty Ltd  5 3 Consumer Decision Process 5 4 Alternative Evaluation and Selection Process 5 5 The Measurement of Evaluative Criteria • Before a strategy