BU432 Lecture Notes - Lecture 19: Determinant, Brand Awareness, Fortune Brands
BU432
Decision Making: Evaluation of
Alternatives
Consideration Set
Evaluative Criteria
• Attribute-based vs. Affect-based criteria
o Price style
o Memory brand image
o Speed prestige
o O/S feelings generated
o Display
• Product features vs. Surrogate features
o Tangible attributes are often used as a surrogate indicator of the performance of
intangible attributes
▪ Price, brand name, retail outlets, country of origin, celebrity endorsement,
packaging/design, & advertising intensity all reveal information about quality
Country of Origin & Quality
• Some countries are known for their expertise in certain domains
o VW – That’s the poer of Gera Egieerig
o Swiss brand watches
• Associations when purchasing
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• If you do’t elog to oe of these ell-known countries, highlight the features that you do
better on, could charge a higher price, etc.
o Make it salient
• Branding or brand names => associations
o American brands with European associations (iӧgo, au bon pain, etc.)
Discussion Question
• What market beliefs (e.g., price = quality) do you have?
o Wine: price and geography indicate quality
o Nice packaging
o Retail outlet (groceries at Sobeys vs Walmart)
o Materials and textiles
o Popularity
o Aesthetic
• Example: pretty vs. okay apple
o One may be organic and swing the vote
o Some people thing pretty = better and others think imperfect = more natural
o Naturally iperfet lie or use for other thigs
Ease of Computation = Bigger Discount
• People perceive easy conditions to be better discounts
o $1 off more popular than $0.99 or even $1.01
Relative Importance of Evaluative Criteria
• Usage situation
o Restaurant (taste, convenience, prestige, etc.)
o Impacts how we weigh criteria
• Competitive context
o Lower variation across brands on a given criterion, the less influence it will have on
decision
▪ Determinant attributes (brand name)
• Advertising effects
o Ads can increase attention and elaborative processing of an attribute
Decision Rules
• Routine decision making
o Repeat purchasing (e.g., inertia/habit)
o Brand loyalty (e.g., retrieve attitudes)
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Document Summary
Evaluative criteria: attribute-based vs. affect-based criteria, price style, memory brand image, speed, o/s, display prestige feelings generated, product features vs. Surrogate features: tangible attributes are often used as a surrogate indicator of the performance of intangible attributes, price, brand name, retail outlets, country of origin, celebrity endorsement, packaging/design, & advertising intensity all reveal information about quality. Country of origin & quality: some countries are known for their expertise in certain domains, vw (cid:862)that"s the po(cid:449)er of ger(cid:373)a(cid:374) e(cid:374)gi(cid:374)eeri(cid:374)g(cid:863, swiss brand watches, associations when purchasing. Ease of computation = bigger discount: people perceive easy conditions to be better discounts, off more popular than sh. 99 or even . 01. Usage situation: restaurant (taste, convenience, prestige, etc. ) Decision rules: routine decision making, repeat purchasing (e. g. , inertia/habit, brand loyalty (e. g. , retrieve attitudes) Limited decision making (more thought involved: heuristics (e. g. , variety seeking, price = quality, non-compensatory strategies, cut-off strategies, extensive decision making, compensatory strategies (e. g. , trade-off strategies, most rational.
