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CHAPTER 13
DECISION MAKING II: ALTERNATIVE EVALUATION AND CHOICE

WHAT DO YOU THINK POLLING QUESTION
Getting a hair style for under $10 is a very good thing.
Strongly disagree 1
2
3
4
5
6
Strongly agree
Have students access www.cengagebrain.com to answer the polling questions for each chapter of
CB. Ask them to take the online poll to see how their answers compare with other students taking
a consumer behavior course across the country. Then turn to the last page of the chapter to find
the What Others Have Thought box feature. This graph is a snapshot of how other consumer
behavior students have answered this polling question thus far.
LEARNING OUTCOMES
After studying this chapter, the student should be able to:
L01 Understand the difference between evaluative criteria and determinant criteria.
L02 Comprehend how value affects the evaluation of alternatives.
L03 Explain the importance of product categorization in the evaluation of alternatives process.
L04 Distinguish between compensatory and noncompensatory rules that guide consumer
choice.
SUGGESTED LECTURE OPENER
Product categorization and criteria selection play an important role in consumer behavior. If a
consumer perceives benefits beyond their own lives, a feel-good effect can come into play.
This can happen when proceeds from a purchase go to support charities, the local economy, or
particularly hot now, environmental or green causes. However, while demand for green
products and services remains on the rise, the economic downturn has negatively affected
spending in this category. This is according to the Green Confidence Index which measures
Americans attitudes toward and confidence in the green movement according to three
components: responsibility (of companies or institutions, and leaders); information provided; and
purchasing rate of consumers. [Source: Flagging Economy Sinks Green Consumer
Confidence, GreenBiz.com, August 2, 2010, http://www.greenbiz.com.]
LECTURE OUTLINE WITH POWERPOINT SLIDES
Slide 1
Slide 2
2012 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Slide 3
The decision-making model is shown in Exhibit 13.1.

LO1. Understand the difference between evaluative criteria and determinant criteria.
Evaluation of Alternatives: Criteria
Slide 4
A very important part of decision making is evaluating alternative solutions to problems.

Evaluative Criteria
After a need is recognized and a search process has taken place, consumers begin to examine the
criteria that will be used for making a choice. Evaluative criteria are the attributes, features, or
potential benefits that consumers consider when evaluating possible solutions to a problem.
A feature is a performance characteristic of an object. A timer on a coffee maker is a
feature. A benefit is a perceived favorable outcome that results from the presence of a particular
feature. A benefit of the timer is that it allows for you to hot coffee waiting for you when you
wake up. These concepts are illustrated in Exhibit 13.2.
Benefits play an important role in the value equation. The consumer doesnt want a
coffee maker because of the timer button, he or she wants hot coffee as soon as possible in the
morning.
Slide 5
Slide 6
Slide 7
Q: Have students select a product that the majority of the class would be
familiar with, such as a cell phone. Have students discuss the differences
between the features and benefits concept.
A: Answers will vary. Features should include email, text messaging, camera,
and so forth. The benefits listed must be perceived as favorable results,
such as keeping in touch with family and friends.
Determinant Criteria
Determinant criteria (sometimes called determinant attributes) are the evaluative criteria that are
most carefully considered and are directly related to the actual choice that is made. Which
criteria are determinant can depend largely on the situation in which a product is consumed.
When the MacBook Air was introduced, it was promoted on thinness and portability. Marketers
position products on the determinant criteria that apply to a specific situation.
Slide 8
Slide 9
LO2. Comprehend how value affects the evaluation of alternatives.

Value and Alternative Evaluation
Slide 10
Remember that benefits are at the heart of the value equation, and value is a function
of both benefits and costs.
Hedonic and Utilitarian Value
Hedonic criteria are emotional, symbolic, and subjective attributes or benefits that are associated
with an alternative. Utilitarian criteria are functional or economic aspects associated with an
alternative.
Rationality, Effort, and Variety

Studies indicate that too much variety actually contributes to feelings of discontent and
unhappiness!1 Bounded rationality acknowledges that perfectly rational decisions are not always
feasible due to constraints found in information processing.
Slide 11
Q: Ask students whether theyve ever become overwhelmed with too much
variety. If not, see whether they can name situations in which consumers
are offered too many choices.
A: Answers might include selecting a new cell phone or computer or simply
visiting a grocery store.
Affect-Based and Attribute-Based Evaluations
There are two major types of evaluation processes: affect-based and attribute-based evaluations.
1. Affect-based evaluations Consumers evaluate products based on the overall feeling
that is evoked by the alternative. An affect-based process is reflected in the statement,
Im not even sure why I bought this sweaterI just liked it. Emotions and mood states
play a big part in affect-based evaluations. Beverage marketers, such as Coca-Cola and
Pepsi-Cola, have responded to consumer desires for variety in beverages.
2. Attribute-based evaluations Consumers evaluate alternatives across a set of attributes
that are considered relevant to the purchase situation. The rational decision-making
process assumes that consumers carefully integrate information about product attributes
and make careful comparisons between products.
Slide 12
1
Schwartz, Barry (2004). The Tyranny of Choice, Scientific American, 290 (4): 70-75.
LO3. Explain the importance of product categorization in the evaluation of alternatives

process.
Product Categorization and Criteria Selection
Slide 13
One of the first things that a consumer does when receiving information from the environment is
attempt to make sense of the information by placing it in the context of a familiar category.
Within these schemas, both product categories and brand categories are found. Product
categories are mental representations of stored knowledge about groups of products. The
successful launch of the iPhone is a good example of a product category.
Category Levels
Consumers possess different levels of product categories. The number of levels and details
within each level is impacted by familiarity and expertise with products.
1. Superordinate Categories These categories are abstract in nature and represent the
highest level of categorization. A superordinate category would be beverages.
2. Subordinate Categories These categories are more detailed. Here, the consumer
examines the knowledge that he has stored about various options. For example, a
consumer would proceed through superordinate and subordinate categories like Colas,
Sports Drinks, and Juices. This concept is illustrated in Exhibit 13.4.
Slide 14
Slide 15
Perceptual and Underlying Attributes

Perceptual attributes are visually apparent and easily recognizable. Size, shape, color, and price
are perceptual attributes. Underlying attributes are not readily apparent and can only be learned
through experience with the product. An example of an underlying attribute is product quality.
A signal is a characteristic allowing a consumer to diagnose something distinctive about an
alternative. Signals often infer information about product quality. This is particularly apparent in
the following situations:
When the consumer is trying to reduce risk
When purchase involvement is low

When the consumer lacks product expertise2
Slide 16
Slide 17
Criteria Selection
A number of factors influence the type of criteria that consumers use when evaluating
alternatives.
1. Situational Influences For example, when buying perfume for a loved one, brand
name and imagery can be very important. These criteria would therefore be weighted
heavily in the evaluation process.
2. Product Knowledge As a consumers level of knowledge increases, he or she is able to
focus on criteria that are most important in making a selection and to discount irrelevant
information.
3. Expert Opinions For example, a computer science professor would be able to guide
students in selecting the most important criteria to consider when buying a new computer.
2
Dawar, Niraj, and Philip Parker (1994). Marketing Universals: Consumers Use of Brand Name, Price,
Physical Appearance, and Retailer Reputation as Signals of Product Quality, Journal of Marketing, 58
(2):81-95.
4. Social Influences Friends, family members, and reference groups also impact the type
of criteria that are used for decision making.
5. Online Sources Popular retail sites, such as www.bestbuy.com, also explain what
attributes consumers should consider.
6. Marketing Communications Marketing communications also assist consumers in
deciding what features to consider when buying a particular product.
Slide 18
Green marketing is a method of marketing that focuses on offering sustainable products. There
are a range of consumers that green marketing targetsthose die-hards who buy every green
product they can to those who only buy green products when the price isnt too high. Marketers
must communicate the effectiveness of their green products, however, because some consumers
think green products arent as effective as other products.
Slide 19
Have students select a few green marketing products and bring them to class,
and/or bring ads for those products. Discuss the products and the marketing
applied to them. Have the marketers done their job to convince consumers of
the effectiveness of the products?
Are Consumers Accurate in Their Assessment of Evaluative Criteria?
Judgments are mental assessments of the presence of attributes as well as the benefits associated
with those attributes. Consumer judgments are impacted by the amount of knowledge or
experience a consumer has with a particular object. During the evaluation process, consumers
make judgments about:
Presence of features (Does this MP3 player play videos?)

Feature levels (How many videos can be stored?)
Benefits associated with features (Id be able to watch a movie on a long trip.)
Value associated with the benefit (That would be nice.)
How objects differ from each other (The other one doesnt have this.)
Slide 20
Q: What judgments have students made when purchasing large-ticket items?

You may want to include purchasing textbooks as an example. Students are
very opinionated about this subject.
A: Answers will vary. Some professors might have students purchase a book
but never use it in class. If this is the case, students will have judgments
based on the benefits and value associated with the book.
Several issues affect consumer judgments, as follows:
1. Just Noticeable Difference (JND) The ability of a consumer to make accurate
judgments when evaluating alternatives is influenced by their ability to perceive
differences in levels of stimuli between two options.
2. Attribution Correlation Consumers often make judgments about features based on
their perceived relationship with other features.
3. Quality Perceptions Marketers have long realized that consumer perception
is critical to marketing success.
4. Brand Name Associations Brand names also impact consumer judgments. Much like
price, brand names can be used as signals of quality.
Slide 21
Slide 22
How Many Criteria Are Necessary to Evaluate Alternatives Effectively?

Choosing among several brands of products and features can be frustrating. However, research
suggests that consumers can handle a surprisingly high number of comparisons before overload
sets in.
Q: Ask students to consider the statement, Consumers are often able to make
good choices when considering only a single attribute. Do they agree or
disagree?
A: Answers will vary. Discuss the number of criteria necessary to evaluate
alternatives effectively. Consumers can handle a lot of information but
report not liking to do so. Is that true of the students as well?
What If Information Is Missing?
Consider the information presented in Exhibit 13.5, which compares data about two televisions
that a consumer collects from print advertisements.
Slide 23
How Do Marketers Determine Which Criteria Consumers Use?

Marketers can use several techniques to determine the criteria that consumers use when judging
products, such as perceptual mapping and conjoint analysis to assess choice criteria. Conjoint
analysis is 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.
LO4. Distinguish between compensatory and noncompensatory rules that guide consumer
choice.
Consumer Choice: Decision Rules

Slide 24
Once consumers have evaluated alternative solutions to a problem, they begin to make choices.
Choice does not mean that a particular alternative will be chosen. There are two major types of
rules that consumers use when selecting products:
1. Compensatory rules Allow consumers to select products that may perform poorly on
one attribute by compensating for the poor performance by performing well on another
attribute.
2. Noncompensatory rules Strict guidelines are set prior to selection, and any option that
does not meet the specifications is eliminated from consideration.
Slide 25
Compensatory Models
The attitude-toward-the-object model (Fishbein model) that was presented in Chapter 7
represents a compensatory approach. The example from that chapter is again shown in Exhibit
13.6.
Slide 26
10
Noncompensatory Models
There are four major categories of noncompensatory rules that consumer researchers have
identified, which are listed as follows:
1. Conjunctive rule Following the conjunctive rule, consumers set a minimum mental
cutoff point for various features and reject any product that fails to meet
or exceed this cutoff point across all features.
2. Disjunctive rule Following the disjunctive rule, consumers set a minimum mental
cutoff for various features, which is similar to the conjunctive rule. However, the cutoff
point is usually high with the disjunctive rule. The product that meet or exceeds this
cutoff on any feature is selected.
3. Lexicographic rule Following the lexicographic rule, consumers select the product that
they believe performs best on the most important feature.
4. Elimination-by-aspects rule (EBA) Following the EBA rule, consumers set minimum
cutoff points for attributes. Beginning with the most important feature, consumers then
eliminate options that dont meet or surpass the cutoff point on this important feature, then
move on to the next most important feature and repeat the process. Consumers do this until
only one option remains and a choice is made.
To illustrate these rules, consider the information presented in Exhibit 13.7.
Slide 27
Slide 28
Use of Decision Rules

Noncompensatory rules are often used in low-involvement situations because these rules allow
consumers to simplify their thought processes. However, these rules are also used in highinvolvement purchase situations as well. The decision as to what car to buy is certainly a highinvolvement decision for most people.
Retail Outlet Selection
Consumers must also choose where they will buy the product. Sometimes, consumers will decide
where they will buy before they determine what they will buy. Consumers have gradually
become less brand loyal and more store loyal. Of course, consumers may also decide to make
their purchases on the Internet.
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Slide 29
Q: Ask students to name their favorite stores. Do they agree that consumers
are becoming more store loyal and less brand loyal? Do students prefer to
shop on the Internet or in a store? Explain.
A: Answers will vary.
VIDEO CLIP
PowerPoint Clip from Kodak
Run time 0:42 minutes
Slide 30
To maintain sales, even an old highly successful company such as Kodak must invest in product
development and management. Consumers will not continue to buy products that are outdated,
particularly in the realm of electronics. To stay on the cutting edge, Kodak has paid close
attention to consumers needs, even if consumers arent yet aware of them. This means
occasionally introducing a product that may have low sales because it is ahead of its time. At
Kodak, consumer confidence is linked to trusting Kodaks technical abilities, product usability,
and up-to-date merchandise.
Ask your students:
1. What attributes of consumers decision-making process does Kodak rely on?
Answer: Kodak hopes consumers will use perceptual or underlying attributes to pick up and
examine the camera based on design or an emotional stimulus.
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2. What other attributes are necessary for a customer to actually make a purchase?
Answer: A positive interaction with the cameras features is necessary. Positive user-interface
begins when the consumer starts playing and interacting with the camera without difficulty. Price
and availability are also important attributes.
END OF CHAPTER MATERIAL

PART 4 CASE ANSWERS
Case 4-1 Consumer Decision Making with Compensatory, Non-Compensatory Models
Questions:
1. Do you believe brand personality plays a major part in decision making? Explain.
Brand personality does play a major role in decision-making, especially if the consumer
is using the Compensatory Model with Implied Behavioral Intentions Model. With the
Lexicographic and Compensatory Models in Tables A and B, the brand personality is not
considered as much of a factor in decision-making. With those who are more subject to
the Implied Behavioral Intentions Model, the reference groups and subjective norms are
likely to influence the consumer towards purchasing one brand over another.
2. After evaluating Table A, which alcohol brand will Greg be most likely to purchase?
The Lexicographic Model points to Belvedere because quality is the most important
attribute for Greg. Belvedere ranked a 9 on his belief scale which shows that he finds that
vodka brand to have the highest level of quality among the four brands. He believes he is
being very rational with his decision, though he is likely being influenced somewhat by
the status appeal of Belvedere.
3. Using Table B and taking Angelinas shopping habits into consideration, which brand of
alcohol will she buy?
All attributes are considered in terms of beliefs and evaluations with the Compensatory
Model. The Compensatory Model results with Grey Goose as Angelinas selection
because the weighted attributes scored the highest with that brand. Even with the price
and bottle design as negative evaluations, Angelinas strong beliefs about quality and
quantity have Grey Goose as the distinct winner. The quality and quantity beliefs overrule
the lower scores for price and bottle design.
4. Looking at Table C and considering what you know about Bellas decision-making style,
which brand is she likely to purchase?
Assume that Bella thinks that all these attributes are important at a minimal level, and
establishes a cutoff point of 5 on the belief attribute with the Conjunctive Approach. With
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this in mind, the Absolut vodka would be the brand most likely to be purchased because it
meets the cutoff of 5 on all attributes. However, given the implication of subjective norms
and friends opinions mentioned in the case, there is the possibility that Bella could go
with the Smirnoff because it has the highest ratings on opinions and subjective norms.
These choices correlate with each of the decision-making models. If she chooses to go
with the Smirnoff, she would be using a Lexicographic Model whereas if she goes with
Absolut, she would be using the Compensatory Model.
5. How might the decision-making processes for each consumer change if shopping for the
product at a warehouse store like Costco as opposed to an upscale wine shop in Florida?
Note: None of these decisions are likely to change if they go into an upscale wine shop
because all of the considerations are going to still be there and this is a specialty
purchase.
Greg is unwavering from his Lexicographic decision-making process. He would still find
perceived quality the most important and buy Belvedere vodka.
Angelina is prone to purchasing Grey Goose because she is rational with higher
involvement purchases and would like to make a good impression her guests. Using the
Compensatory Model, she is taking all attributes into consideration and is likely to still
buy the Grey Goose.
Bella goes into Costco for an impulsive shopping spree before her trip. She is by herself
where her friends opinions have lost their impact. The imagery with the bottle of Absolut
catches her eye in the store. She makes her purchase based off of this individual attribute
using the disjunctive approach. This implies that there is a high cutoff point, but it is not
attribute specific. Note that imagery and attractiveness of the spokesperson both have
scores of 9.
Case 4-2 Redefining Good Cleaning Products
Questions:
1. What temporary situations, or changes in life circumstances, might influence a consumer
to recognize a need for a cleaning product, in general, or a green cleaner, in particular?
How might a marketer leverage this knowledge?
Situational Influence: Most Americans view cleaning products as a household essential,*
so the primary driver of need recognition is an out-of-stock condition as opposed to
time and place situational influences. That said, spring cleaning might serve as a time
influence and a place influence may occur when shopping given in that stores may have
prominent displays or entire aisles devoted to cleaning products (making the product
category salient). Marketers can use trade promotion to ensure prominent retail
placement and may increase promotions during spring cleaning time.
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*Instructor note: Americans affluence and strong value on cleanliness and material
solutions, probably means that Americans are more likely to feel a need for lots of
specific types of cleaning products (supporting wide product lines) and branded cleaners
as opposed multi-functional materials like vinegar and baking soda.
Life Circumstances: Other than out-of-stock conditions, consumers are likely to
recognize a need when 1) they move to a new location, especially when living
independently for the first time, 2) have children or develop medical conditions making
them especially sensitive to health affects of cleaners. Marketers can target consumers in
experiencing these life changes.
2. What types of purchase decisions were made by Jack, Jill and Elena: A) extended
decision making, b) limited decision making, c) habitual decision making: brand inertia
vs. brand loyalty? Explain.
Extended Decision Making: Elena is concerned for her new babys health, so she has high
involvement with the product category and decision process . Thus, she engages in more
search (drives to a new store, reads packages carefully, visit websites), after is willing to
pay a higher price for the safest brand.
Limited Decision Making: Jill has low involvement with the product category and
decision process she engages in just enough search in the store aisle to find the best
product on the singe attribute of price.
Habitual Decision Making: Jack repeatedly buys the same brand without any alternative
evaluation. The case doesnt provide enough information to know if this is due to loyalty
(he likes the smell of his laundry and knows he wont get a skin rash) or inertia (it makes
for very quick grocery shopping)
Instructor Note: A first time Method purchaser could make either an extended decision
(research into environmental aspects) or a limited decision (I like the style of the bottle).
The latter shows the influence of hedonic value. Green cleaners can be sought for
utilitarian value (safer health-wise) or hedonic value (I feel proud that I protect the planet
for others).
3. How do perceptual attributes and packaging characteristics of the brands in this case
study signal product quality in terms of the underlying environmental and health
benefits?
The Environmental and health aspects of the product (i.e., underlying attributes) are
similar to perceived quality because consumers dont have knowledge of -- or expertise
to evaluate product ingredients and manufacturing-and-distribution processes.
Consumers make environmental and health evaluations by relying on perceptual
attributes and visual characteristics such as
eco-labels and certifications [note: a side discussion can address the value of the
various types of labels and the difference between rigorous certifications and
consumers awareness of certifications.]
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the eco-image of the store in which the product is sold (health food store)
brand name: Green Works and Seventh Generation, which comes from an Iroquois
belief that decision makers should consider consequences of actions on multiple
generations.
product color: Green Works green liquid
package and label design: nature imagery (flower) and utilitarian packages that
convey a meaning of anti-big-business-and-slick-marketing
price: nontoxic cleaners must cost more, in the same way the other types of quality
are perceived as costing more
4. How are consumers who shop at Whole Foods (a natural food store) and those who shop
at Walmart likely to differ in terms of their consideration sets, determinant criteria, and
use of a compensatory or noncompensatory rule when factoring environmentallypreferred attributes? How does product categorization explain Methods decision to
initially deemphasize green features when the product was launched?
consideration set
determinant criteria
(non) compensatory rule
Whole Foods
Method, Seventh Generation,
and other eco-brands
Health, social, and
environmental benefits
Noncompensatory: will rule
out chemical cleaners
Walmart
Green Works, Cloroxs Formula 409, and
traditional brands
Price, availability
Compensatory: will trade off green for
better price [note: some consumers do pay
more for Green Works, but thats probably
due more to the health benefits than
planetary benefits, per se]
Consumers divide cleaning products (i.e., superordinate level) into subordinate categories of
green and conventional. Method did not want to be categorized as a green product, even
though it was, because the green category has been associated with the perception of
ineffectiveness.
ONLINE CASE ANSWERS
Visit www.login.cengage.com to access the online case studies for CB.
1. What types of decision-making rules can be used for selecting a digital camera? How
would they apply to this case?
Answer: Because buying a digital camera is usually a high-involvement decision with
significant risk, it is likely that compensatory rules would apply. It is likely that the attitudetoward-the-object rule would also be used. However, noncompensatory rules could also be
used. For example, perhaps the consumer wants to purchase the camera that he or she
thinks is best regarding the most important attribute. If resolution were the most important
attribute, then Camera A would be selected. The consumer might use a conjunctive process
by deciding that the camera that is selected cannot exceed $1,200. In this case, Camera A
would be rejected. The consumer could then evaluate cameras B & C further.
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2. How can consumers deal with the problem of missing information for one, or several, of the
alternatives?
Answer: If information is missing, the consumer would probably pay close attention to the
information that is consistent across the choices and decide on the brand that performs best
on the consistent information/variable.
3. What role does the brand name of a camera play in the selection process?
Answer: Brand names can be very strong signals. Although they can signal many things,
they usually signal quality. Several brand names generally signal quality including Canon,
Sony, or Nikon.
4. Compare two popular websites, such as www.bestbuy.com and www.myproductadvisor.com,
on their presentation of alternatives and explanation of differences between cameras. How
helpful do you find these sites to be?
Answer: At the time of this writing, www.myproductadvisor.com appears to do a very good
job at recommending cameras. Its website starts by asking general questions such as how
the camera will be used, what price range is acceptable, and even specific attributes that are
desired by the consumer. Ultimately, the site recommends specific cameras based on these
preferences. www.bestbuy.com also does a good job explaining different brands and models,
but does not begin with consumer preferences. Rather, this website asks for specific
categories of products that the consumer is seeking (e.g., number of megapixels,
resolution). At this time, it did not recommend specific brands. Students will probably vary
in the extent to which they find the sites to be helpful.
REVIEW QUESTIONS
(*) Indicates material on prep cards.
1. [LO1] What is the difference between evaluative and determinant criteria? What attributes
do you consider to be evaluative and determinant criteria in the selection of a new TV? A
new car?
Answer: Evaluative criteria are the attributes, features, or product benefits that consumers
consider when evaluating possible solutions to a problem. These criteria include features or
benefits associated with a potential solution. Determinant criteria are the criteria that are
most carefully considered when an actual choice is made. Several attributes may be
evaluative when selecting a new TV including picture clarity, surround-sound capabilities,
size of the screen, and warranty. Picture clarity may be a determinant criterion that most
heavily influences product choice. Similarly, several features may be considered to be
evaluative when selecting a new car including gas mileage, style, horsepower, safety
ratings, and warranty. Gas mileage may be a determinant criterion for many students.
2. *[LO1] What is the difference between features and benefits? Do consumers pay more
attention to features or benefits? How can benefits be utilitarian or hedonic?
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Answer: A feature is a performance characteristic of an object. A benefit is a perceived

favorable outcome that results from the presence of a particular feature. In general,
consumers seek benefits rather than features. The presence of a feature allows a certain
benefit to be obtained, so both benefits and features are important. Ultimately, however, it is
benefits that consumers seek. Benefits can deliver practical solutions to problems, thereby
being utilitarian in nature. They can also bring about emotional or symbolic outcomes that
are associated with consumption (e.g., the prestige of owning a product or the feelings
associated with using a product). In this way, benefits can be classified as being utilitarian
or hedonic.
3. [LO2] How does value affect the alternative evaluation process?
Answer: Value plays a very important role in alternative evaluation. To evaluate literally
means to set a value or worth to an object. As the chapter points out, benefits represent an
important part of the value equation, and value is a function of both benefits and costs. Both
utilitarian and hedonic value influence alternative evaluation.
4. [LO2] In what ways do utilitarian attributes deliver value to consumers? In what ways do
hedonic attributes deliver value to consumers?
Answer: Utilitarian attributes deliver value to consumers by providing functional or
economic benefits to consumers. A purse, for example, provides the benefit of storage of
personal items. Hedonic attributes deliver hedonic benefits. A designer purse, for example,
delivers symbolic value for a consumer.
5. [LO3] How do consumers product categories influence the alternative evaluation process?
Answer: When consumers encounter a new product, they rely on the knowledge they
possess regarding the relevant product category, and knowledge about the existing category
is transferred onto the novel item. Evaluations of product brands usually take place at
subordinate levels. For example, evaluations of different brands of snack foods would take
place at the subordinate level.
6. [LO3] How do consumers handle missing information for a particular option within a
product category?
Answer: When consumers are faced with the problem of missing information, they will
weigh the criteria that are common to the alternatives heavily when evaluating brands. They
also discount the information that is missing for the option that performs better on the
common criteria.
7. *[LO3] How does product categorization theory apply to snack foods like potato chips?
How does this categorization help you as a consumer?
Answer: Product categorization can easily be described with snack food items. As the text
describes, there are many subordinate categories for snack food. One of these would be
potato chips. From this category, several competing brands could emerge, from Pringles
to Lays. The purpose of this question is to get students to think about how they use
categorization processes in their everyday lives.
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8.
[LO4] How do compensatory rules differ from noncompensatory rules?

Answer: Compensatory rules differ from noncompensatory rules in that they allow for a
product that performs poorly on an attribute to be eventually selected. The reason is that the
attribute that is poorly rated is compensated for by another attribute that is rated highly.
Noncompensatory rules set cutoff points for attributes.
9.
[LO4] In what ways does the lexicographic rule differ from the disjunctive rule? In what
ways are they similar?
Answer: The lexicographic rule states that the consumer will select the product that
performs best on the most important attribute. The disjunctive rule states that the consumer
will select the product that performs very well on any attribute. They are similar in that the
selection is based on highly rated attributes. The difference can be found in whether the
consumer considers the attribute to be the most important attribute.
10 . *[LO4] Do consumers rely on one type of decision rule or another? Can the rules be used
together?
Answer: Consumers use any and all of the decision rules. The lexicographic rule is very
popular. Simply stated, consumers know what they want and they look for these attributes
in the products that they are considering. They can also combine both noncompensatory and
compensatory approaches.
INTERACTIVE/APPLICATION EXERCISES
11. Visit a website that focuses on car purchases such as www.autobytel.com,
www.carsdirect.com, or www.edmunds.com. If you were really buying a car, how helpful
would you consider this website to be for alternative evaluation? What aspects of the
websites did you like? How could they be more useful to you if you really were going to
buy a car?
Answer: Student responses to this question will vary regarding what types of information is
most important and which websites could be more helpful.
12. Ask fellow students what they consider to be evaluative and determinant criteria in the
purchase of a new car. In what ways are their responses similar to your opinion? In what
ways do they differ?
Answer: Student answers will vary. Students tend to consider things such as price and gas
mileage when considering car purchases. Also, stylishness is often important. This is a good
discussion question for the class.
13. Check out the support or decision aids of a website for a popular retailer like
www.bestbuy.com. If you were really using this aid on the website for help with buying a
product would you find it to be helpful? Did it lead you to consider options that you
otherwise wouldnt consider? Why or why not?
Answer: Student answers will again vary. As the box in this chapter explains, some
consumers will choose to use these aids while some will not. Generally, using these aids do
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lead consumers to consider options they otherwise wouldnt consider. This is usually
helpful. Some consumers will choose not to use the aids. They seem to have their minds
already made up, or simply do not want to take the time to listen to recommendations.
14. Family members can impact the types of information that consumers seek for various
purchases. In what ways do your family members influence the types of information that
you seek about products? Does their influence differ according to the type of product? How
does their influence differ?
Answer: As the text explains, consumers are often guided by family members and friends
concerning what types of information to seek, especially for socially visible products. Many
times, consumers arent aware of the types of issues that they are told to consider.
Differences are likely to be found across product types.
15. Consider your decision to attend your college. What type of decision process did you use?
What were you looking for? Was the process a compensatory or noncompensatory process?
Ask a fellow student about their decision to attend your school. What type of process did he
or she use?
Answer: Some students may respond by saying that they had known for many years which
college they would attend. This choice may have been a family tradition for some students.
Other students will search more predictably by looking at things such as tuition, available
majors, or placement rates of graduates. It is likely that students will report that they use
compensatory approaches when selecting colleges. The final choice may have been thought
to perform poorly on a relevant attribute, and yet the choice was still ultimately made.
16. Ask a friend what types of attributes they look for in selecting a retail store for purchasing
clothing. What attributes are most important to him or her? In what ways are these
attributes similar to attributes that you look for in a store?
Answer: Consumers generally look for retail stores that in some way reflect their own selfconcepts. This is common across consumers. It is likely that responses will reflect this idea.
This also makes for an interesting class discussion.
17. Survey fellow classmates about what features of a website they feel are most important
when shopping online. Are these features similar to what you seek in a website when you
purchase products online?
Answer: There are many features that students will look for in a website. The availability of
information and Internet security are likely to be popular. Furthermore, students often look for
sites that are in some way entertaining. It is likely that responses will be similar, although not
exactly the same, across students.
18. *The next time you go shopping, look for green products in the cleaning aisle of the
grocery/department store. Do you think that these products are as effective as other cleaning
products? Why or why not? What can marketers do to improve the promotion of these
products?
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Answer: Some consumers are biased in thinking that these products are not as effective as
traditional product offerings. Sometimes, they are correct. That is, some of these products
simply are not as effective. Students are likely to come up with some creative ideas on how
these products could be more effectively marketed.
GROUP ACTIVITY
*Assign students to groups and have them visit Facebook. Within Facebook, ask them to look up
various fan pages for products of their choice. Examples would be cereals, snack food, ice
cream, colas, etc. Within each of these group pages (e.g., Special K group for cereal), ask the
students to share how many times competing products are mentioned and have them present how
the other products are discussed. How would these discussions on fan pages influence their
decision making? Are all of the discussions about competing products negative? Does the
sponsor of the website (the company) provide comparative information about competing brands?
If so, how does this influence consumers? Ask students to compare their findings across groups.
What differences in the information is found for various product categories?
CHAPTER VIDEO CASE
To view the video case Ford Motor Company, go to the CB companion website
login.cengage.com to select this video.3
Ford Motor Co. was founded in 1903 and was an innovator in the automobile industry. When gas
prices were rising, the luxury of driving large, gas-guzzling SUVs seemed to be coming to an
end. Ford, however, developed the first hybrid SUV on the market, the Ford Escape. This was a
totally new product line and called for nontraditional marketing. The new Ford Escape was
advertised as the most fuel efficient and environmentally friendly SUV. Collaborating with their
public affairs team, Ford set out to prove the Escapes fuel efficiency claims with the Manhattan
on a Tank of Gas campaign. The Escape is a significant offering that will promote greater
market share and profitability.
Ask Your Students:
1. Why would Ford create a hybrid SUV? What makes the Escape attractive to consumers?
Answer: Until gas prices started to soar, Americans loved to buy and drive the luxurious,
yet sporty SUVs. Once oil prices began to rise, SUVs were traded in and consumers started
purchasing fuel efficient cars. Ford recognized consumers desire for the SUV and fuel
efficiency, and merged the two together. Americans now drive their large SUVs while
getting 38 miles per gallon.
2. How did Ford approach the pricing of the Escape? What effect does this have on
consumers decisions?
From Hoyer & MacInnis. Segment 11 Ford Motor Company from Consumer Behavior, pg. 15-16. Copyright (c) 2010
South-Western, a part of Cengage Learning, Inc. Reproduced by permission. www.cengage.com/permissions
21
Answer: Ford started by looking at the prices of other SUVs and other hybrids in the
marketplace. They also conducted price elasticity research and research to determine what
consumers were willing to pay for a fuel efficient SUV. Ford also lobbied the government
for incentives to promote hybrids and make the Escape as affordable as possible.
3. Discuss how Ford was socially responsible and how marketers fostered environmentally
conscious behavior.
Answer: The Escape claims to be the cleanest, most fuel-efficient SUV on the planet. The
Escape also has the lowest emissions out of any SUV. In 2005, the Escape was rated
number twelve of any vehicle for overall fuel economy. Marketers set out to prove these
claims with their Manhattan on a Tank of Gas campaign. This heightened the visibility of
the SUV and demonstrated its environment-friendly characteristics.
PART 4 VIDEO CASE
To view the part 4 video case, go to the CB companion website login.cengage.com to select this
video.
Wireless Zone & Verizon
Time: This video is between 5-7 minutes long.
Concepts Illustrated in the Video
Situational influences
Time pressure
Shopping activities
Shopping value
Decision making
Evaluative criteria
Synopsis
Claire, a volunteer teacher is shopping at the Wireless Zone/Verizon for a replacement cell
phone. She hasnt done her research (i.e. talked to friends or gone on the Internet) on which
phone to purchase and shes pressed for time. Walter, the Sales Associate asks Claire about her
cell phone needs in terms of features. Will she need Bluetooth, a camera, email, texting, etc.?
Claire is indecisive and decides shes looking for a product similar to the iPhone. She ends up
spending $499 on a new phone and leaves the store wondering whether she was ripped off and if
she made the right choice given her lack of knowledge when it comes to technology.
Teaching Objectives for the Video Case
Understand how value varies with situations

Know the different ways that time affects consumer behavior
Distinguish the concepts of unplanned, impulse and compulsive consumer behavior
Understand the consumer decision making process
Understand the factors that influence the amount of search performed by consumers
22
Comprehend how value affects the evaluation of alternatives
Suggested Answers to Critical Thinking Questions

1. Which situational influences affected Claires decision?
Answer: All three situational influences affected her decision: time, place, and conditions.
Time and conditions are represented by the fact that she was in a hurry to get to the airport.
She was leaving on a trip in less than three hours and would be gone for the entire summer
on a volunteer teaching experience. Place represents the Wireless Zone and her lack of
comfort with technology products.
2. If you were Claire, what would you have done in that situation? Did Walter service her
needs? Do you think she got ripped off? Explain.
Answer: Student answers will vary for all three components. Prompt students to discuss
their consumer shopping experiences with either positive or negative results.
3. Describe Claires consumer decision-making process for purchasing her new cell phone.
Answer: Claire went though the five steps: need recognition, search for information,
alternative evaluation, choice, and postchoice evaluation. First, Claire determined that her
broken cell phone needed to be replaced. Second, she visited the Wireless Zone for a new
phone. Third, she spoke to the Associate for alternative choices. Fourth, she chose a phone
similar to an iPhone. Fifth, she pondered over the purchase as to whether she was ripped off
or received what she needed.
4. What type of decision-making qualities did Claire possess in the video? How do you
compare yourself with Claire when purchasing high-ticket items?
Answer: Claire possessed decision-making and emotional qualities. Claire was obviously
unsure of what she was looking for in a phone and therefore regarded this purchase as a
difficult decision because of her lack of technological knowledge. Answers will vary when
students compare themselves with Claire. Some students will be extremely budget
conscious, while others will spend freely without regard to price tags.
5. Explain the evaluative criteria for purchasing a new cell phone or piece of technology. Use
product, feature, and benefit in your answer.
Answer: Student responses will vary depending on their comfort levels with technology. If
continuing with the cell phone example as the product, the features include a camera, email, text-messaging capabilities, and music. Consumer benefits are that the user has the
freedom to connect to the Internet at any time and any place, and the user also has a device
that can play music and serve as a cell phone in one compact unit.
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CHAPTER 13

DECISION MAKING II: ALTERNATIVE EVALUATION AND CHOICE

The decision-making model is shown in Exhibit 13.1.

A very important part of decision making is evaluating alternative solutions to problems.

LO2. Comprehend how value affects the evaluation of alternatives.

Rationality, Effort, and Variety

LO3. Explain the importance of product categorization in the evaluation of alternatives

Perceptual and Underlying Attributes

When purchase involvement is low

Presence of features (Does this MP3 player play videos?)

Q: What judgments have students made when purchasing large-ticket items?

How Many Criteria Are Necessary to Evaluate Alternatives Effectively?

How Do Marketers Determine Which Criteria Consumers Use?

Consumer Choice: Decision Rules

Use of Decision Rules

END OF CHAPTER MATERIAL

Answer: A feature is a performance characteristic of an object. A benefit is a perceived

[LO4] How do compensatory rules differ from noncompensatory rules?

Understand how value varies with situations

Comprehend how value affects the evaluation of alternatives

Suggested Answers to Critical Thinking Questions

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