MARK2051 Lecture Notes - Lecture 5: Perceptual Mapping, Evaluation Strategy, Decision Rule
Lecture 5: Preference Construction, Info Search & Evaluation
What is preference?
Preference: consumer’s comparative evaluation of product attributes in terms of
utility (what factors influence preferences? Can utility change based on other
factors)
Utility: subjective value of a product attribute (marketing cares about the why and
how)
Contingent Preferences
Contingent Valuation: expressed judgements and choice are highly contingent
upon seemingly minor changes in decision task and context
• Response mode effects
o Slovic and Lichtenstein (1958) gambles offering a high payoff with low
probability priced higher than those offering a low payoff with high
probability
• Information display and framing
o E.g. saving 100 people vs. losing 100 people
• Context effects
o Middle option has an advantage in choice set
• Cruel choices
Problem Representation
Problem representation: problem recognition moderated by stimulus perception
• Affected by process of problem recognition and perception
o Problem recognition: perception of actual state affects need
awareness and motivation, in turn this affects degree of search and
information processing
o Perception: exposure to stimuli, selective attention to parts of the
decision problem, integration of stimuli (decision frames)
• Affects subsequent preferences by directing attention during information
search and evaluation
Information Search
Information search: process of gathering information for the purpose of creating a
set of consideration alternatives
Information: perceived value of a stimulus
• Stimuli that predict problem resolution contain information
• Stimuli that do not are just noise
Information gathering is influenced by:
Document Summary
Lecture 5: preference construction, info search & evaluation. Utility: subjective value of a product attribute (marketing cares about the why and how) Information display and framing: e. g. saving 100 people vs. losing 100 people, context effects, middle option has an advantage in choice set, cruel choices. Information search: process of gathering information for the purpose of creating a set of consideration alternatives. Information: perceived value of a stimulus: stimuli that predict problem resolution contain information, stimuli that do not are just noise. Information gathering is influenced by: types of information search, purchase related (need to know) vs. Consideration set is a group of product alternatives that a consumer is willing to purchase: may be compared against each other to determine best alternative, often use more elaborate evaluation strategies for brands in consideration set. Evaluation of alternatives is the comparison of product alternatives on some evaluation criteria according to a decision rule.
