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Week 3: Evaluating and selecting alternatives - Coggle Diagram
Week 3: Evaluating and selecting alternatives
Objectives
The nature of evaluative criteria
Tools for the measurement of evaluative criteria
Consumers’ individual judgments (not always accurate)
Types of decision rules consumers may apply (optional)
Implications of evaluative criteria for marketing strategy
Nature & measurement of evaluative criteria
Product features or desired characteristics that will meet consumer’s needs.
Evaluative criteria is person/product/situation specific and can evolve
To enable the marketing manager to develop a sound strategy they must determine
How the consumer perceives alternative products in terms of each criterion
The relative importance of each criterion
Which evaluative criteria are used by the consumer
Alternative evaluation & selection process
Step 1
:
Evaluative criteria
Importance of criteria
Alternatives considered
Step 2
: Evaluation of alternatives using each criterion
Step 4
: Alternatives selected
Step 3
: Decision rules applied
Are consumers’ judgements always accurate?
Not always rational when judging brands’ performance on evaluative criteria.
Consumers have some market beliefs and distortions that marketers need to consider in their strategies.
Surrogate indicator:
Substitute or use one attribute to evaluate the level of another attribute. Eg: Higher price must mean higher quality.
Sensory discrimination:
Use one of the five senses to evaluate. Judging the quality of coffee from the smell before you even taste.
Just-noticeable difference:
minimum amount of difference perceived by consumers.
Which types of purchase involvement would lead to these decision rules
Elimination-by-aspects (eliminate solutions)
Lexicographic (select the highest solutions)
Disjunctive (minimum satisfactory level)
Compensatory (highest total score)
Conjunctive (minimum level of performance)
Understanding target buyers’ decision rules to achieve product positioning
Understand how product's strenghts and weaknesses apply when that rule is used
Develop strategy to strengths position within the decision rule
Target buyer's dominant decision rule
Increased chance of selection
Decision rules: Which option should I choose?
Elimination-by-aspects: Rank the evaluative criteria in terms of importance and establish satisfactory levels for each. Start with the most important attribute and eliminate all brads that do not meet the satisfactory level. Continue through the attributes in order of importance until only one brand is left.
Lexicographic: Rank the evaluation criteria in terms of importance. Start with the most important criterion and select the brand that scores highest on that dimension. If two or more brands tie, continue through the attributes in order of importance until one of the remaining brands outperforms the others.
Disjunctive: Select all (or any or first) brands that surpass a satisfactory level in any relevant evaluation criterion.
Compensatory: Select the brand that provides the highest total score when the performance ratings for all the relevant attributes are added together (with or without importance weights)for each brand.
Conjunctive: Select all (or any or first) brands that surpass a minimum level on each relevant evaluation criterion