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.

• 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

• Measurement of evaluation criteria

– identify important criteria

– perception of each product for these

– alternative performance of each product

PPTs t/a Consumer Behaviour 4e by Neal, Quester, 

Hawkins

5–3

Evaluation of Alternatives (cont.)

• Determining the alternatives

Consumer Decision Process

Alternative Evaluation and

Selection Process

• 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

PPTs t/a Consumer Behaviour 4e by Neal, Quester, 

Hawkins

5–7

Determining which Evaluative

Criteria are Used

Perceived Performance of

Six Television Sets

Importance of Evaluative

Criteria to Buyers

Perceptual Mapping of Soap Brands

PPTs t/a Consumer Behaviour 4e by Neal, Quester, 

Hawkins

5–11

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

PPTs t/a Consumer Behaviour 4e by Neal, Quester, 

Hawkins

5–12

Determining Consumers’ Judgments

of Brand Performance in Terms of

Specific Evaluative Criteria

• Rank-ordering scales

• Sematic-differential scales

• Likert scales

PPTs t/a Consumer Behaviour 4e by Neal, Quester, 

Hawkins

5–14

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.

Application of Conjoint Analysis

Using Conjoint Analysis to Determine the

Importance of Evaluative Criteria

• The accuracy of individual judgments

– Use of a surrogate indicator

– Sensory discrimination

– Just-noticeable difference

PPTs t/a Consumer Behaviour 4e by Neal, Quester, 

Hawkins

5–18

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

Use of Price to Indicate the Quality of Jewellery

PPTs t/a Consumer Behaviour 4e by Neal, Quester, 

Hawkins

5–21

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

Use of Celebrity Endorsement

Use of Country of Origin

Decision Rules Used by Consumers (cont.)

– rank brands on evaluative criteria

– select highest ranking brands until only one is left

4 Lexicographic

– rank brands on evaluative criteria importance

– select the one that is highest on most important criteria

5 Compensatory

– Select brand that has the highest score over all the relevant evaluative criteria

Understanding Target Buyers’ Decision

Rules to Achieve Product Positioning

Alternative Decision Rules and

Selection of a Television Set