Non-compensatory rules do not admit trade-offs between the relevant attributes of the choice alternatives as they assume decisions are made on an attribute-by-attribute basis and that the separate utilities are not combined into a single utility value. Perhaps the best known non-compensatory decisior!
What is non compensatory?
Non Compensatory Decision Rule. A type of decision rule by which positive evaluation of a brand attribute doesn’t compensate for a negative evaluation of the same brand on some other attribute . Conjunctive Decision Rule. Consumers establish a minimally acceptable cutoff point for each attribute evaluated.
What is non compensatory decision rule example?
Consumers making non-compensatory choices consider attributes sequentially and benefits on some attributes may not overbalance shortfalls on others. For example a mother wants to buy freshly squeezed orange juice, but her children dislike the feel of pulp in their mouths and refuse to drink it.
What is the difference between a non compensatory and a compensatory decision rule give one example of each?
Compensatory rules allow for the positive evaluation of one brand attribute to balance out the negative attributes. Non-compensatory decision rules do not allow for positive and negative attributes to balance out (“Decision and Purchase”, n.d.).
What is a non compensatory decision rule?
A noncompensatory decision-making strategy eliminates alternatives that do not meet a particular criterion . A compensatory decision-making strategy weighs the positive and negative attributes of the considered alternatives and allows for positive attributes to compensate for the negative ones.
What is compensatory rule?
Definition. In evaluating alternatives, the compensatory rule suggests that a consumer will select the alternative with the highest overall evaluation on a set of choice criteria .
What is non compensatory damage?
Non – Compensatory Damages means any and all damages awarded by a court of competent jurisdiction that are penal in nature, including, without limitation, punitive , punitory, exemplary, vindictive, imaginary or presumptive damages .
What is a non-compensatory pause?
The interval on the electrocardiogram that follows a premature atrial contraction (PAC) . Because PACs reset the sinus pacemaker, the next sinus beat does not appear when it would have if there had been no extra beat.
What is a compensatory model?
A multi-attribute model in which one attribute compensates for another in the overall preference for an object or idea .
What is a non-compensatory stock option?
Noncompensatory stock options are a specific type of plan, a benefit that allows employees to buy company stock at a specific price within a specific time frame . Compensatory stock options are designed specifically to compensate employees and are subject to various tax laws.
What are the 3 forms of consumer decision rules?
There are three broad levels of decision making, depending on involvement – nominal, limited, and extended . As you can imagine, nominal decision making is where there is little purchase involvement, and there really isn’t any decision to make, you just buy the product/brand.
What is lexicographic rule?
According to the lexicographic decision rule, a decision alternative is better than another alternative if and only if it is better than the other alternative in the most important attribute on which the two alternatives differ.
What is the disjunctive rule?
Disjunctive rule: a minimally acceptable cut off point is established for each attribute . The brands are evaluated, and, the brand that falls above the cut off point on any of the attributes is selected. ... If a brand ranks considerably high than the others on this attribute, it is selected.
When should a compensatory model be used?
The Compensatory model helps in compensating for the low scores on certain predictors with that of the higher scores that has been on some other predictor. Overall, such compensation helps in arriving at a Total score that averages out any extreme scorings upon various predictors.
What is the simple additive rule?
Simple additive rulethe consumer merely chooses the alternative that has the largest number of positive attributes Weighted additive rulethe consumer also takes into account the relative importance of positively rated attributes, essentially multiplying brand ratings by importance weightsEvaluation Exercise!
What is compensatory marketing strategy?
The first two strategies are called compensatory strategies. In these strategies, consumers allow a higher value of one attribute to compensate for a lesser value of another attribute . For example, if a consumer is looking at automobiles, a high value in gas mileage might compensate for a lower value in seating space.
