CHAPTER 16

Alternative
Evaluation
and
Selection

Copyright © 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.
PART IV: CONSUMER DECISION PROCESS

16-2
 Learning Objectives

L01 Discuss how actual consumer choice often differs

from rational choice theory

Summarize the types of choice processes consumers

L02
engage in

L03 Explain evaluative criteria and their measurement

L04 Describe the role of evaluative criteria in consumer

judgment and marketing strategy

L05 Summarize the five decision rules for attribute-based

choice and their strategic relevance
Consumer Choice and Types of Choice
Processes

16-4
 Consumer Choice and Types of Choice
Processes
Three types of consumer choice processes:

1. Affective Choice

2. Attitude-Based Choice

3. Attribute-Based Choice

16-5
 Consumer Choice and Types of Choice
Processes
Affective Choice
v Tend to be more holistic:

Ø Brand not decomposed into distinct components for separate evaluation.

Ø Evaluations generally focus on how the brand will make the user feel.

Ø Choices are often based primarily on the immediate emotional response

to the product or service.

16-6
 Affective Choice
The brand wants to own one emotional space in the consumer’s heart as
much as it owns the rational space in the consumer’s mind.

Coca Cola – Open Happiness

https://www.youtube.com/watch?v=P7ADWd9Psag
 Consumer Choice and Types of Choice
Processes
Attitude-Based Choice

ü General attitudes
ü Summary impressions
ü Intuitions
ü Heuristics (problem
solved by yourself
through self discovery
and self learning from
experiences)
Vinfast Evo 200 Lite

16-8
 Consumer Choice and Types of Choice
Processes
Attribute-Based Choice

Ø Requires the knowledge of specific attributes at the time the

choice is made.
Ø Involves attribute-by-attribute comparisons across brands.

16-9
 Evaluative Criteria
Nature of Evaluative Criteria

v Evaluative criteria are the various

dimensions, features, or benefits a
consumer looks for in response to
a problem.

v They can vary in terms of:

Ø Type (objectively specified vs.

subjectively)

Ø Number

Ø Importance

16-10
 Evaluative Criteria
Measurement of Evaluative Criteria
To develop a good marketing strategy, the marketer
must determine the followings:
1. Which evaluative criteria the
consumer use?
2. How the consumer
perceives alternative
products in terms of each
criterion?
3. The relative importance of
each criterion?

16-11
 Evaluative Criteria
Determination of Which Evaluative Criteria Are Used
1. Direct methods: ask consumers what criteria they use in a
particular purchase.
2. Indirect methods: sometimes consumers will not or
cannot state their evaluative criteria, therefore marketers
should use:
Ø Projective technique - allow the respondent to
indicate the criteria someone else might use.
Ø Perceptual mapping – use judgment to determine
dimensions underlying consumer evaluations of brand
similarity.

16-12
 Evaluative Criteria
Perceptual Mapping of Beer Brand Perception

16-13
 Evaluative Criteria
Determination of Consumers’ Judgments of Brand
Performance on Specific Evaluative Criteria
Different methods can be applied:

Ø Rank ordering scales: ranking a list of items from most

(liking/importance/preference, effectiveness...) to least

Ø Semantic Differential Scales: ranking between

opposite level of performance (e.g., low vs high)

Ø Likert Scales: ranking level of agreement and

disagreement

16-14
 Rank ordering scale
Order of importance Criteria

1 Price

2 Location

3 Safety

4 Convenience

5 Sport facilities
Semantic differential scale
Likert scale
 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.

Ø The constant sum scale (direct): the assignment of a fixed

number of units to each attribute of the object, reflecting the
importance a respondent attaches to it.

Ø Conjoint Analysis (indirect):

Ø Consumers (respondents) are presented with a set of

products and a set of criteria/attributes

Ø Consumers (respondents) are asked to rank the products in

terms of their preference for those combination of
criteria/attributes
16-18
Constant Sum Method
Conjoint Analysis Method
Decision Rules for Attribute-Based Choices

Select all (or any or first) brands that surpass a minimum level on each
1. Conjunctive
criterion.
Select all (or any or first) brands that surpass a satisfactory level in any
2. Disjunctive
criterion.
Rank the criteria in terms of importance and establish satisfactory levels
3. Elimination- for each. Start with the most important criterion and eliminate all
by-aspects brands that do not meet the satisfactory level. Continue through the
criteria in order of importance until only one brand is left.
Rank the criteria in terms of importance. Start with the most important
criterion and select the brand that scores highest on that criterion. If
4. Lexicographic
two or more brands tie, continue through the criteria in order of
importance until one remaining brand outperforms the others.
Select the brand that provides the highest total score when the
5. Compensatory performance ratings for criteria are added together (with or without
importance weights) for each brand.
Decision Rules for Attribute-Based Choices

Ø A young family with 2 kids has just moved to HCMC

Ø They are now looking for an apartment to rent
Ø They limit their apartment search in district 7 and the following
residential buildings fall into your consideration: HAGL, Green
View, Riverside, Hung Vuong, Sky Garden
Ø What evaluative criteria should they use to select a?
 Defining Evaluative Criteria

Evaluative Importance Minimum Satisfaction Hung

Riverside Sky Garden HAGL GreenView
Criteria of criteria level level Vuong

Rent

Swimming
pool

Close to shops
& school

Garden

Playground
 Assigning Level of Importance to Criteria

Evaluative Importance Minimum Satisfaction Hung

Riverside Sky Garden HAGL GreenView
Criteria of criteria level level Vuong

Rent 35

Swimming
5
pool

Close to
shops & 30
school

Garden 20

Playground 10

Total 100
 Defining Minimum and Satisfaction Levels

Evaluative Importance Minimum Satisfaction Hung

Riverside Sky Garden HAGL GreenView
Criteria of criteria level level Vuong

Rent 35 3 3

Swimming
5 1 2
pool

Close to shops
30 4 4
and school

Garden 20 4 4

Playground 10 3 4

Total 100
 Rating the Brands (Apartments)

Evaluative Importance Minimum Satisfaction Hung

Riverside Sky Garden HAGL GreenView
Criteria of criteria level level Vuong

Rent 35 3 3 1 5 4 3 2

Swimming
5 1 2 5 1 3 4 4
pool

Close to shops
30 4 4 1 5 5 3 1
and school

Garden 20 4 4 4 5 1 2 1

Playground 10 3 4 4 4 1 2 1

Total 100
 Conjunctive Decision Rule

Select all (or any or first) brands that surpass a minimum level on each criterion.

Evaluative Importance Minimum Hung

Riverside Sky Garden HAGL GreenView
Criteria of criteria level Vuong

Rent 35 3 1 5 4 3 2

Swimming
5 1 5 1 3 4 4
pool

Close to shops
30 4 1 5 5 3 1
and school

Garden 20 4 4 5 1 2 1

Playground 10 3 4 4 1 2 1

Total 100
 Disjunctive Decision Rule

Select all (or any or first) brands that surpass a satisfactory level in any criterion.

Evaluative Importance of Satisfaction Hung

Riverside Sky Garden HAGL GreenView
Criteria criteria level Vuong

Rent 35 3 1 5 4 3 2

Swimming
5 2 5 1 3 4 4
pool

Close to shops
30 4 1 5 5 3 1
and school

Garden 20 4 4 5 1 2 1

Playground 10 4 4 4 1 2 1

Total 100
 Eliminate-by-Aspects Decision Rule

Start with most important criterion. Eliminate brands that don’t meet satisfaction level

Evaluative Importance of Satisfaction Hung

Riverside Sky Garden HAGL GreenView
Criteria criteria level Vuong

Rent 35 3 1 5 4 3 2

Swimming
5 2 5 1 3 4 4
pool

Close to shops
30 4 1 5 5 3 1
and school

Garden 20 4 4 5 1 2 1

Playground 10 4 4 4 1 2 1

Total 100
 Lexicographic Decision Rule

Start with most important criterion. Select the brand that scores the
highest on that attribute

Evaluative Importance of Hung

Riverside Sky Garden HAGL GreenView
Criteria criteria Vuong

Rent 35 1 5 4 3 2

Swimming
5 5 1 3 4 4
pool

Close to shops
30 1 5 5 3 1
and school

Garden 20 4 5 1 2 1

Playground 10 4 4 1 2 1

Total 100
 Compensatory Decision Rule

Select the brand with highest total score

Evaluative Importance of
Riverside Hung Vuong Sky Garden HAGL GreenView
Criteria criteria

Rent 35 1 (35*1=35) 5 (35*5=165) 4 (35*4=140) 3 (35*3=105) 2 (35*2=70)

Swimming
5 5 (5*5=25) 1 (5*1=5) 3 (5*3=15) 4 (5*4=20) 4 (5*4=20)
pool

Close to shops
30 1 (30*1=30) 5 (30*5=150) 5 (30*5-150) 3 (30*3=90) 1 (30*1=30)
and school

Garden 20 4 (20*4=80) 5 (20*5=100) 1 (20*1=20) 2 (2-*2=40) 1 (20*2=40)

Playground 10 4 (10*4=40) 4 (10*4=40) 1 (10*1-10) 2 (10*2=20) 1 (10*1=10)

Total 100 ? ? ? ? ?
Situational Influences on Consumer Choice

Ø Choices are not independent of the competitive situation,

an effect sometimes called context effects

Ø One such effect is when an additional competitor makes

an existing competitor appear to be the “compromise”
option

Ø Choice of the compromise brand increases even though:

1. Consumers are still using the same decision rule

2. The compromise brand’s attribute levels have not

changed

16-32
Situational Influences on Consumer Choice
Compromise Effect

16-33
END OF CHAPTER 16
CHAPTER 18
Postpurchase
Processes,
Customer
Satisfaction,
and Customer
Commitment

Copyright © 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.
PART IV: CONSUMER DECISION PROCESS

18-36
 Learning Objectives

L01 Describe the various postpurchase processes engaged in

by consumers

L02 Define and discuss postpurchase dissonance

Discuss the issues surrounding product use and nonuse

L03 and their importance to marketers

L04 Summarize disposition options and their relevance to

marketers and public policy

L05 Explain the determinants and outcomes of satisfaction

and dissatisfaction

L06 Describe the relationship between satisfaction, repeat

purchase, and customer commitment
Postpurchase Consumer Behavior

18-38
 Postpurchase Dissonance

Postpurchase Dissonance occurs when a consumer has doubts or

anxiety regarding the wisdom of a purchase made and is a function
of the following:
Ø The degree of commitment or
irrevocability of the decision
Ø The importance of the decision
Ø The difficulty of choosing among
the alternatives
Ø The individual’s tendency to
experience anxiety

18-39
 Postpurchase Dissonance
After the purchase is made, the consumer may utilize one or more of the
following to reduce dissonance:
ü Increase the desirability of the brand purchased
ü Decrease the desirability of rejected alternatives
ü Decrease the importance of the purchase decision
ü Reverse the purchase decision (return before use – if possible)

18-40
 Product Use and Nonuse
Product Use
v Retailers can frequently take
advantage of the fact that the use
of one product may require or
suggest the use of other products,
e.g., dresses and shoes.

v Retailers can promote such items:

ü Jointly

ü Display them together

ü Train sales personnel to make

relevant complementary sales

18-41
 Product Use and Nonuse
Product Use
v Stringent product liability laws have made firms responsible for
harm caused by products not only:

Ø When the product is used as specified by the manufacturer,

but

Ø In any reasonably foreseeable use of the products.

v When marketers discover confusion about proper use, they should

engage in communications to increase the chances of proper use.

18-42
Disposition

18-43
 Disposition
Product Disposition and Marketing Strategy

v Marketers must be aware of the disposition factors that ultimately

affect consumer purchase decisions.

v Helping consumers with the disposition of a used product can help

the consumer through this process (e.g., developing products,
packages and programs that encourage proper disposition).

18-44
Purchase Evaluation and Customer
Satisfaction
The Evaluation Process

18-45
 Purchase Evaluation and Customer
Satisfaction
The Evaluation Process
Determinants of Satisfaction and
Dissatisfaction

ü Instrumental performance relates to

the physical functioning of the product.

ü Symbolic performance relates to

aesthetic or image-enhancement
performance.

ü Affective performance is the

emotional response that owning or
using the product or outlet provides

18-46
Dissatisfaction Process

18-47
 Dissatisfaction Responses
Marketing Strategy and Dissatisfied Consumers

Firms need to satisfy consumer expectations by:

1. Creating reasonable expectations through promotional efforts, and

2. Maintaining consistent quality so the reasonable expectations are

fulfilled.

Expectation for Pharmacity

https://www.youtube.com/watch?v=wT78wKHllD4

18-48
 Dissatisfaction Responses
Marketing Strategy and Dissatisfied Consumers

v When a consumer is
dissatisfied, the most favorable
consequence is for the person
to communicate this
dissatisfaction to the firm but to
no one else.

v Unfortunately, many individuals

do not communicate their
dissatisfaction to the firm
involved.

v Companies often make it United breaks guitars

difficult to complain or are
https://www.youtube.com/watch?v=5YGc4zOqozo
unresponsive to complaints.
18-49
 Customer Satisfaction, Repeat
Purchases, and Customer Commitment
Creating Committed Customers
Is Increasingly the Focus of Marketing Strategy

v Repeat purchasers continue

to buy the same brand
though they do not have an
emotional attachment to it.

v Switching costs are the

costs of finding, evaluating,
and adopting another
solution.

v Brand loyalty involves

commitment to the brand – it
is a biased behavioral
response expressed over
time.

18-50
 Customer Satisfaction, Repeat
Purchases, and Customer Commitment
Do you know your Net Promoter Score?

Net Promoter Score (NPS) is an indirect word-of-mouth

(WOM) measure of true attitudinal loyalty.

There are three categories of consumers:

1. Promoters
2. Passively satisfied
3. Detractors
NPS = Promoters minus Detractors

18-51
 Customer Satisfaction, Repeat
Purchases, and Customer Commitment
Repeat Purchasers, Committed Customers, and Profits

v A churn is a turnover in a firm’s customer base.

Ø Reducing churn is a major objective of many firms today.

Ø It typically costs more to obtain a new customer than to

retain an existing one, and new customers generally are
not as profitable as longer-term customers!

18-52
 Customer Satisfaction, Repeat
Purchases, and Customer Commitment

18-53
 Customer Satisfaction, Repeat
Purchases, and Customer Commitment
Repeat Purchasers, Committed Customers, and
Marketing Strategy
Developing a marketing strategy for a
particular segment includes identifying
specific objectives to be pursued, such as:
1. Attracting new users to the product
category
2. Capturing competitors’ current
customers
3. Encouraging current customers to use
more
4. Encouraging current customers to
become repeat purchasers
5. Encouraging current customers to
become committed customers
18-54
 Customer Satisfaction, Repeat
Purchases, and Customer Commitment
Customer Satisfaction Outcomes

18-55
 Customer Satisfaction, Repeat
Purchases, and Customer Commitment
Relationship Marketing
Five key elements to Relationship marketing:
1. Developing a core service or
product around which to build a
customer relationship
2. Customizing the relationship to the
individual customer
3. Augmenting the core service or
product with extra benefits
What is CRM and how does it work?
4. Pricing in a manner to encourage
loyalty https://www.youtube.com/watch?v=SlhESAKF1Tk

5. Marketing to employees so that

they will perform well for customers

18-56
 Task Reminder For Next Week
Continue to work on your group report and present the
progress (e.g., the research part) to me on Monday 21/11