Chapter 5: Evaluating and selecting

alternatives

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PPTs t/a Consumer Behaviour 5e by Quester, Neal, Pettigrew, Grimmer, Davis & Hawkins 5-1
Slides prepared by Dr Wayne Binney
 Evaluating and selecting alternatives
A further step in the consumer decision making
process

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PPTs t/a Consumer Behaviour 5e by Quester, Neal, Pettigrew, Grimmer, Davis & Hawkins 5-2
Slides prepared by Dr Wayne Binney
 Chapter 5: Evaluating and selecting
alternatives
• The nature of evaluative criteria
• Tools for the measurement of 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

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PPTs t/a Consumer Behaviour 5e by Quester, Neal, Pettigrew, Grimmer, Davis & Hawkins 5-3
Slides prepared by Dr Wayne Binney
 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

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PPTs t/a Consumer Behaviour 5e by Quester, Neal, Pettigrew, Grimmer, Davis & Hawkins 5-4
Slides prepared by Dr Wayne Binney
 Evaluation of alternatives (cont.)
• Determining the alternatives
• Evaluating alternatives
• Selecting a decision rule
– Non-compensatory
– Compensatory
– Constructive
– Phased
• Marketing implications

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PPTs t/a Consumer Behaviour 5e by Quester, Neal, Pettigrew, Grimmer, Davis & Hawkins 5-5
Slides prepared by Dr Wayne Binney
 Alternative evaluation and
selection process

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PPTs t/a Consumer Behaviour 5e by Quester, Neal, Pettigrew, Grimmer, Davis & Hawkins 5-6
Slides prepared by Dr Wayne Binney
 The measurement of
evaluative criteria
• To enable the marketing manager to develop a
sound strategy they must determine:

– 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

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PPTs t/a Consumer Behaviour 5e by Quester, Neal, Pettigrew, Grimmer, Davis & Hawkins 5-7
Slides prepared by Dr Wayne Binney
 Determining evaluative criteria to use

• Direct methods
– Asking consumers
– Focus groups
– Observation
• Indirect methods
– Projective techniques
– Perceptual mapping

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PPTs t/a Consumer Behaviour 5e by Quester, Neal, Pettigrew, Grimmer, Davis & Hawkins 5-8
Slides prepared by Dr Wayne Binney
 Perceived performance of six mobile
phones in relation to six evaluative criteria

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PPTs t/a Consumer Behaviour 5e by Quester, Neal, Pettigrew, Grimmer, Davis & Hawkins 5-9
Slides prepared by Dr Wayne Binney
 Importance of evaluative criteria to
three buyers

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PPTs t/a Consumer Behaviour 5e by Quester, Neal, Pettigrew, Grimmer, Davis & Hawkins 5-10
Slides prepared by Dr Wayne Binney
 Perceptual mapping of soap brands

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PPTs t/a Consumer Behaviour 5e by Quester, Neal, Pettigrew, Grimmer, Davis & Hawkins 5-11
Slides prepared by Dr Wayne Binney
 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
evaluative criteria
– How the positions of brands change in response to
marketing efforts
– How to position new products using evaluative criteria

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PPTs t/a Consumer Behaviour 5e by Quester, Neal, Pettigrew, Grimmer, Davis & Hawkins 5-12
Slides prepared by Dr Wayne Binney
 Determining consumers’ judgments
of brand performance in terms of
specific evaluative criteria

• Rank-ordering scales

• Sematic-differential scales

• Likert scales

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PPTs t/a Consumer Behaviour 5e by Quester, Neal, Pettigrew, Grimmer, Davis & Hawkins 5-13
Slides prepared by Dr Wayne Binney
 Determining the relative importance of evaluative
criteria - constant sum method

Evaluative criteria Importance (in points)

Price 20

Size 15

Warranty 15

Quality of digital camera 5

Compatibility with email system 10

Ease of use 35

Total 100

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PPTs t/a Consumer Behaviour 5e by Quester, Neal, Pettigrew, Grimmer, Davis & Hawkins 5-14
Slides prepared by Dr Wayne Binney
 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.

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PPTs t/a Consumer Behaviour 5e by Quester, Neal, Pettigrew, Grimmer, Davis & Hawkins 5-15
Slides prepared by Dr Wayne Binney
 One possible application of conjoint
analysis

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PPTs t/a Consumer Behaviour 5e by Quester, Neal, Pettigrew, Grimmer, Davis & Hawkins 5-16
Slides prepared by Dr Wayne Binney
 Using conjoint analysis to determine the
importance of evaluative criteria

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PPTs t/a Consumer Behaviour 5e by Quester, Neal, Pettigrew, Grimmer, Davis & Hawkins 5-17
Slides prepared by Dr Wayne Binney
 Individual judgment and
evaluative criteria
• The accuracy of individual judgments

– Use of a surrogate indicator

– Sensory discrimination

– Just-noticeable difference

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PPTs t/a Consumer Behaviour 5e by Quester, Neal, Pettigrew, Grimmer, Davis & Hawkins 5-18
Slides prepared by Dr Wayne Binney
 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

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PPTs t/a Consumer Behaviour 5e by Quester, Neal, Pettigrew, Grimmer, Davis & Hawkins 5-19
Slides prepared by Dr Wayne Binney
 Use of surrogate indicators (cont.)
• Price
– Used to judge the perceived quality of a large rang of
goods

• Brand
– Often used as a surrogate indicator of quality
 E.g. jeans

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PPTs t/a Consumer Behaviour 5e by Quester, Neal, Pettigrew, Grimmer, Davis & Hawkins 5-20
Slides prepared by Dr Wayne Binney
 Use of price to indicate the quality of
jewellery

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PPTs t/a Consumer Behaviour 5e by Quester, Neal, Pettigrew, Grimmer, Davis & Hawkins 5-21
Slides prepared by Dr Wayne Binney
 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

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PPTs t/a Consumer Behaviour 5e by Quester, Neal, Pettigrew, Grimmer, Davis & Hawkins 5-22
Slides prepared by Dr Wayne Binney
 Use of celebrity endorsement

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PPTs t/a Consumer Behaviour 5e by Quester, Neal, Pettigrew, Grimmer, Davis & Hawkins 5-23
Slides prepared by Dr Wayne Binney
 Use of country of origin

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PPTs t/a Consumer Behaviour 5e by Quester, Neal, Pettigrew, Grimmer, Davis & Hawkins 5-24
Slides prepared by Dr Wayne Binney
 Decision rules used by consumers
• Conjunctive
• Disjunctive
• Elimination-by-aspects
• Lexicographic
• Compensatory

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PPTs t/a Consumer Behaviour 5e by Quester, Neal, Pettigrew, Grimmer, Davis & Hawkins 5-25
Slides prepared by Dr Wayne Binney
 Decision rules used by consumers
(cont.)

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PPTs t/a Consumer Behaviour 5e by Quester, Neal, Pettigrew, Grimmer, Davis & Hawkins 5-26
Slides prepared by Dr Wayne Binney
 Summary of the decision rules
1. Conjunctive
– Brands that meet a minimum level on each evaluative criterion
2. Disjunctive
– Brands that meet a satisfactory level on any relevant evaluative
criteria
3. Elimination-by-aspects
– 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

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PPTs t/a Consumer Behaviour 5e by Quester, Neal, Pettigrew, Grimmer, Davis & Hawkins 5-27
Slides prepared by Dr Wayne Binney
 Understanding target buyers’ decision
rules to achieve product positioning

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PPTs t/a Consumer Behaviour 5e by Quester, Neal, Pettigrew, Grimmer, Davis & Hawkins 5-28
Slides prepared by Dr Wayne Binney
 Alternative decision rules and
selection of a mobile phone
Decision rule Brand choice

Conjunctive Samsung, Nokia

Disjunctive Motorola, Samsung, Sony

Erickson
Elimination-by-aspects Motorola

Lexicographic Sony Erickson

Compensatory Motorola

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PPTs t/a Consumer Behaviour 5e by Quester, Neal, Pettigrew, Grimmer, Davis & Hawkins 5-29
Slides prepared by Dr Wayne Binney
 Summary
We have discussed:
• The nature of evaluative criteria
• Tools for the measurement of 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  2007 McGraw-Hill Australia Pty Ltd

PPTs t/a Consumer Behaviour 5e by Quester, Neal, Pettigrew, Grimmer, Davis & Hawkins 5-30
Slides prepared by Dr Wayne Binney
 Next Lecture

Chapter 6:
Outlet Selection and Purchase

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PPTs t/a Consumer Behaviour 5e by Quester, Neal, Pettigrew, Grimmer, Davis & Hawkins 5-31
Slides prepared by Dr Wayne Binney