tm 5-1 copyright © 1999 addison wesley longman, inc. consumer choice the consideration set ...

TM 5-TM 5-11Copyright © 1999 Addison Wesley Longman, Inc.Copyright © 1999 Addison Wesley Longman, Inc.

Consumer Choice

The consideration set Stimulus-based versus memory-based choice Attitude-based versus attribute-based choice Choice Heuristics Determinants of choice strategy


The Consideration Set...Consumers rarely consider more than nine brands before choosing!

Brands available in the marketplace Consideration Set Choice (>20 brands) (7 + 2 brands) (1 brand)


The Consideration Set

Part-List Cuing Attraction Effect

–Williams-Sonoma Home Bread Bakery $275Later offered a more expensive model and sales of the original model almost doubled–Cross Pen or $6 - 36% chose the Cross PenCross Pen or decoy pen or $6 - 46 % chose the Cross Pen

Tradeoff Contrast Effect–$1,000 PC with 640K or $1,200 PC with 960K(Tradeoff of $200 for an additional 320K)

Compromise Effect


Part-List Cuing

.64 .59 .60 .47 .56 .43

Proportion of Brands Recalled

0 5 15

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1

0


Exp. 1 Homogeneous Brands

0 5 15M .59 .47 .43F .64 .60 .56

Exp. 2 Heterogeneous Brands

0 5 15M .59 .47 .43F .64 .60 .56

Exp. 3 Prop. of subjects Prop. of subjectsrecalling at least 1 recalling at least 1item from nasal item from multisymptomspray category formula category

no cue mutisymp. cue no cue spray cue 1.00 .78 .78 .33


Part-List Cuing Effect - Why?

1. P(retrieving itemi) = Strength of Assoc. Between i and Category Strength of Assoc. Between Each Item

& Category

2. Sampling with Replacement

Sampling an item increases strength of association between that item and the category


How Choices and Comparisons Are Made

Stimulus-Based Choice Memory-Based Choice Mixed Choice

(Alba et. al. (1993) - Consumers prefer the stimulus brand overa memory brand, even when the memory brand is better. However, memory brand is preferred more over time when positive features are made more memorable by frequency (many positives) or by puffery .)

Attitude-Based vs. Attribute-Based Choice - Accessibility-Diagnosticity Model


Sanyo attribute recall4.73 2.08 3.92 4.97 3.57

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Sanyo evaluation recall1.58 1.19 1.81 1.25 1.11

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Evaluation recall4.03 3.28 4.12 4.12 3.48 3.40

Choice Recall Control

Consistent Inconsistent


Choice Heuristics

Attitude-Based Strategies–The Theory of Reasoned Action–Information Integration Theory–Attitude Heuristic–Frequency of Good and Bad Features Heuristic


Frequency of good/bad features is one way to choose...


Choice Heuristics

Attribute-Based Strategies–Between Alternative Processing

Lexicographic HeuristicLexicographic Semiorder Heuristic Mr. Coffee Accel PR12A $27 90 Mr. Coffee Accel PR16 $25 85 Mr Coffee BL110 $22 80Elimination-By-Aspects HeuristicAdditive-Difference HeuristicMajority of Confirming Dimensions Heuristic

–Within Alternative ProcessingConjunctive HeuristicDisjunctive Heuristic

–Phased Strategies


The lexiographic heuristic involves choosing the best brand on the basis of its most important attribute.


Determinants of Choice Strategy

Processing Goals (Involvement, Accountability, Perceived Risk)

Processing Load- Decision Difficulty (# of brands, # of attributes, time pressure)

Context- Brand-based vs. Attribute-based format- Framing Effect (75% lean/ 25% fat ground beef)

- Unwanted Premium Effect (Pillsbury Brownie Cake Mix or Pillsbury Brownie Cake Mix Plus)(Collector’s Plate Offer - reduced price with POF)


Processing goals are influenced by importance of a decision, accountability, and perceived risk...

tm 5-1 copyright © 1999 addison wesley longman, inc. consumer choice the consideration set ...

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