Chapter 13: Decision Making 2: Alternative Evaluation and Choice
Evaluative Criteria: are the attributes, features, or potential benefits that consumers
consider when reviewing possible solutions to a problem.
• Feature: is a performance characteristic of an object.
• Benefit: a perceived favourable result that is derived from the presence of a
particular feature.
Note: benefits play an important role in the value equation.
Determinant Criteria: are the evaluative criteria that are related to the actual choice that
is made.
The situation in which the product is consumed affects which criteria are determinant.
Statistical tools are often needed to establish which criteria are determinant.
Remember that benefits are at the heart of the value equation, and value is function of
both benefits and costs.
Value and Alternative Evaluation
Consumers seek both hedonic and utilitarian value; the criteria that consumers use when
evaluating a product can be classified as either hedonic or utilitarian.
• Hedonic criteria include emotional, symbolic, and subjective attributes or benefits
that are associated with an alternative.
• Utilitarian criteria pertain to function or economic aspects associated with an
alternative.
Bounded rationality: describes the idea that perfectly rational decisions are not always
feasible due to constraints or limits of human information processing.
Affect Based Evaluation: consumers evaluate products based on the overall feeling that
is evoked by the alternative.
• Mood is also influential when limited information is found about an alternative.
Attribute Based Evaluation: alternatives are evaluated across a set of attributes that are
considered relevant to the purchase situation.
,Product Categorization and Criteria Selection
Product categories: are mental representations of stored knowledge about groups of
products.
Note: knowledge about the existing category is transferred to the novel item.
• Distinctions at basic levels are generally made across product categories.
• Distinctions at subsequent level increase in specificity, ultimately to the brand and
attribute level.
The different levels of product categories are referred to as being either superordinate or
subordinate.
• Superordinate categories are abstract in nature and represent the highest level of
categorization.
• Subordinate categories are more detailed, the consumer examines the kn
knowledge that he has stored about various options.
Note that evaluations are generally more relevant and meaningful at subordinate levels.
, Perceptual Attributes: are visually apparent and easily recognizable. Size, shape, colour,
and price are perceptual attributes. Often referred to as search qualities.
Underlying Attributes: not readily apparent and can only be learned through experience
with the product. Often referred to as experience qualities because they are perceived
only during consumption.
• The distinction between the two types is important because consumers most often
infer the existence of underlying attributes through perceptual attributes.
A signal is a characteristic that allows a consumer to diagnose something distinctive
about an alternative.
Signals such as brand name, price, appearance, and retailer reputation often
imply information about product quality. This is particularly so in the following
situations:
• When the consumer is trying to reduce risk
• When purchase involvement is low
• When the consumer lacks product expertise
Situational influences, product knowledge, expert opinions, social influences, online
sources, and marketing communications all influence the type of criteria that are used.
Judgements: are mental assessments of the presence of attributes and the benefits
associated with those attributes.
Consumer judgments are affected by the amount of knowledge or experience a consumer
has with a particular object. Several issues affect consumer judgements:
1. Just Noticeable Difference: the ability of a consumer to make accurate judgements
when evaluating alternatives is influenced by his or her ability to perceive
differences in levels of stimuli between two options.
2. Attribute Correlation: perceived relationship between product features.
3. Quality Perception: objective quality refers to the actual quality of a product that
can be assessed through industry specification or expert rating. Perceived quality
is based on consumer perceptions.
4. Brand Name Associations: brand can be a signal of quality and as such influence
consumer judgements.
Conjoint Analysis: used to understand the attributes that guide preferences by having
consumers compare products across levels of evaluative criteria and the expected utility
associated with the alternatives.
Evaluative Criteria: are the attributes, features, or potential benefits that consumers
consider when reviewing possible solutions to a problem.
• Feature: is a performance characteristic of an object.
• Benefit: a perceived favourable result that is derived from the presence of a
particular feature.
Note: benefits play an important role in the value equation.
Determinant Criteria: are the evaluative criteria that are related to the actual choice that
is made.
The situation in which the product is consumed affects which criteria are determinant.
Statistical tools are often needed to establish which criteria are determinant.
Remember that benefits are at the heart of the value equation, and value is function of
both benefits and costs.
Value and Alternative Evaluation
Consumers seek both hedonic and utilitarian value; the criteria that consumers use when
evaluating a product can be classified as either hedonic or utilitarian.
• Hedonic criteria include emotional, symbolic, and subjective attributes or benefits
that are associated with an alternative.
• Utilitarian criteria pertain to function or economic aspects associated with an
alternative.
Bounded rationality: describes the idea that perfectly rational decisions are not always
feasible due to constraints or limits of human information processing.
Affect Based Evaluation: consumers evaluate products based on the overall feeling that
is evoked by the alternative.
• Mood is also influential when limited information is found about an alternative.
Attribute Based Evaluation: alternatives are evaluated across a set of attributes that are
considered relevant to the purchase situation.
,Product Categorization and Criteria Selection
Product categories: are mental representations of stored knowledge about groups of
products.
Note: knowledge about the existing category is transferred to the novel item.
• Distinctions at basic levels are generally made across product categories.
• Distinctions at subsequent level increase in specificity, ultimately to the brand and
attribute level.
The different levels of product categories are referred to as being either superordinate or
subordinate.
• Superordinate categories are abstract in nature and represent the highest level of
categorization.
• Subordinate categories are more detailed, the consumer examines the kn
knowledge that he has stored about various options.
Note that evaluations are generally more relevant and meaningful at subordinate levels.
, Perceptual Attributes: are visually apparent and easily recognizable. Size, shape, colour,
and price are perceptual attributes. Often referred to as search qualities.
Underlying Attributes: not readily apparent and can only be learned through experience
with the product. Often referred to as experience qualities because they are perceived
only during consumption.
• The distinction between the two types is important because consumers most often
infer the existence of underlying attributes through perceptual attributes.
A signal is a characteristic that allows a consumer to diagnose something distinctive
about an alternative.
Signals such as brand name, price, appearance, and retailer reputation often
imply information about product quality. This is particularly so in the following
situations:
• When the consumer is trying to reduce risk
• When purchase involvement is low
• When the consumer lacks product expertise
Situational influences, product knowledge, expert opinions, social influences, online
sources, and marketing communications all influence the type of criteria that are used.
Judgements: are mental assessments of the presence of attributes and the benefits
associated with those attributes.
Consumer judgments are affected by the amount of knowledge or experience a consumer
has with a particular object. Several issues affect consumer judgements:
1. Just Noticeable Difference: the ability of a consumer to make accurate judgements
when evaluating alternatives is influenced by his or her ability to perceive
differences in levels of stimuli between two options.
2. Attribute Correlation: perceived relationship between product features.
3. Quality Perception: objective quality refers to the actual quality of a product that
can be assessed through industry specification or expert rating. Perceived quality
is based on consumer perceptions.
4. Brand Name Associations: brand can be a signal of quality and as such influence
consumer judgements.
Conjoint Analysis: used to understand the attributes that guide preferences by having
consumers compare products across levels of evaluative criteria and the expected utility
associated with the alternatives.
