Alternative Evaluation and Selection Process

Evaluative criteria

Importance of criteria

Alternatives considered

Evaluation of alternatives on each criterion

Decision rules applied

Alternative selected

Ex: Notebook Computers

Evaluative Criteria

Importance

Minimal Acceptable

Performance

Consumer Perceptions

Gateway HP Compaq Dell IBM Toshiba

Price 30 3 5 3 3 4 2 1

Weight 25 4 3 4 5 4 3 4

Processor 10 4 5 5 5 2 5 5

Battery life 05 3 1 3 1 3 1 5

Service 10 3 3 3 4 3 5 3

Display 20 3 3 3 3 5 3 3

Compensatory Decision Rule

Multi-attribute modelMulti-attribute model

Rb= Wi Bib

n

i=1

Non-compensatory Decision Rules

ConjunctiveConjunctive •Accept alternative only if each criterion equals or exceeds the minimum cutoff level.

•A product is acceptable only if it exceeds the minimum level on at least one criterion

•Crank criterion from most to least important and choose best alternative on most important criterion

•Select one criterion and eliminate alternatives that don’t exceed it’s established cutoff level. Continue eliminating until one alternative remains.

DisjunctiveDisjunctive

LexicographicLexicographic

Elimination by aspectsElimination by aspects

Combination Processes

• Mix of compensatory and non-compensatory processes, combined or “constructed” on the spot to adapt to environmental factors

Attribute-Based vs. Attitude-Based Choice

Attitude-based choice – involves the use of general attitudes, summary impressions, intuitions, or heuristics; no attribute-by-attribute comparisons are made at the time of choice.

Examples of Consumer Heuristics

Search HeuristicsSearch Heuristics

•Store selection

•Sources of information

•Source credibility

Examples of Consumer Heuristics (cont.)

Evaluation HeuristicsEvaluation Heuristics

•Key criteria

•Negative criteria

•Significant differences

Examples of Consumer Heuristics, cont..

Choice HeuristicsChoice Heuristics

•Works best

•Bought last

•Price-based rule

If choosing among familiar products...

Examples of Consumer Heuristics (cont.)

Choice HeuristicsChoice Heuristics

•Wait and see

•Expert consultant

If choosing among unfamiliar products