Consumer behavior and marketing strategy 12e hawkins motherbaugh chapter 16

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

Copyright © 2013 by The McGraw-Hill Companies, Inc All rights reserved McGraw-Hill/Irwin

PART IV: CONSUMER DECISION PROCESS

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

Learning Objectives

16-3

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 Behavior In The News…

Consumer Choice and Types of Choice

Processes

An Examination of Rational Choice Theory

1 Assumption: Consumers seek one optimal solution to a

problem and choose on that basis

are different from this

2 Assumption: Consumers have the skill and motivation to

find the optimal solution

motivation to do so

3 Assumption: The optimal solution does not change as a

function of situational factors such as time pressure, task

definition, or competitive context

16-7

Consumer Choice and Types of Choice

Processes

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.

Affective Choice

Choices are often based

primarily on the immediate

emotional response to the

product or service.

16-9

Consumer Choice and Types of Choice

Processes

The following Video Clip demonstrates

how Holiday Inn Express tries to

encourage affective choice by

advertising the product in a

“promotion-focused” way by keying in on the brand

as a “smart” choice!

16-10

Video Application

16-11 16-11

Attitude- versus Attribute-Based Choice Processes

Attribute-Based Choice

• Requires the knowledge of specific attributes at the time the choice is made, and it involves attribute- by-attribute comparisons across brands.

comparisons are made at

the time of choice.

16-12

Consumer Choice and Types of Choice

Processes

The Eton Radio ad

provides consumers

all the great features of

its radio and uses the

tag line “Tune in: to

Evaluative criteria are typically associated with desired

benefits and can differ in

Measurement of Evaluative Criteria

Involves a determination of:

16-15

Evaluative Criteria

1 Direct methods include asking consumers what criteria

they use in a particular purchase.

2 Indirect techniques assume consumers will not or cannot

state their evaluative criteria.

indicate the criteria someone else might use.

determine dimensions underlying consumer evaluations of brand similarity.

Determination of Which Evaluative Criteria Are Used

16-16

Evaluative Criteria

Perceptual Mapping of Beer Brand Perception

16-17

Evaluative Criteria

Measuring consumer judgments of brand performance on

specific attributes can include:

Semantic Differential Scales

Likert Scales

Determination of Consumers’ Judgments of Brand

Performance on Specific Evaluative Criteria

16-18

Evaluative Criteria

The importance assigned to evaluative criteria can be

measured either by direct or by indirect methods.

method

Conjoint Analysis is the most common indirect method.

Determination of the Relative Importance of

Evaluative Criteria

16-19

Evaluative Criteria

 Accuracy of Individual Judgments

 Use of Surrogate Indicators

 The Relative Importance and Influence of

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:

Processor 3 Battery life 1 After-sale support 2 Display quality 3

16-22

Decision Rules for Attribute-Based

Choices

Lenovo, Acer, Dell, and Toshiba are eliminated

because they fail to meet all the minimum standards

Conjunctive Rule

Minimum 3 4 3 1 2 3

16-23

Decision Rules for Attribute-Based

Choices

Disjunctive Rule:

Establishes a minimum required

performance for each important

attribute (often a high level)

All brands that meet or exceed

the performance level for any

key attribute are acceptable If

minimum performance was:

Processor Not critical Battery life Not critical After-sale support Not critical

Display quality 5

16-24

Decision Rules for Attribute-Based

Choices

Acer, Compaq, and Dell meet minimum for at least

one important criterion and thus are acceptable.

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 1 3 Weight 2 4 Display quality 3 4 Processor 4 3 After-sale support 5 3

Battery life 6 3

16-26

Decision Rules for Attribute-Based

Choices

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.

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.

Lexicographic Decision Rule

16-28

Decision Rules for Attribute-Based

Choices

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

Compensatory Decision Rule

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

Summary of Resulting Choices from Different

Decision Rules

16-31

Decision Rules for Attribute-Based

Choices

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

a) Consumers are still using the same decision rule

Compromise Effect

16-33

Situational Influences on Consumer Choice