A
multi-attribute model in which one attribute compensates for another in the overall preference for an object or idea
.
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 compensatory model of buying decision?
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 are compensatory decision rules?
Compensatory Rule
The compensatory rule dictates that
a consumer makes decisions in terms of each relevant attribute and computes a weighted or summated score for each brand
.
How do consumers use compensatory decision making models?
The compensatory and non-compensatory models are the cognitive models through which the information is combined together for decision making. The compensatory model is
a cost benefit analysis of the consumer
. The consumer analyses the goodness and badness about the brand with the positive and negative information.
What are the 3 forms of consumer decision rules?
There are three broad levels of decision making, depending on involvement –
nominal, limited, and extended
.
What are the three models of consumer decision making?
- Extended problem solving,
- Limited problem solving, and.
- Habitual decision making.
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.
What is non compensatory rules?
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 the 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.
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 heuristic thinking?
A heuristic is
a mental shortcut that allows people to solve problems and make judgments quickly and efficiently
. These rule-of-thumb strategies shorten decision-making time and allow people to function without constantly stopping to think about their next course of action.
What are the various models of decision making?
The four different decision-making models—
rational, bounded rationality, intuitive, and creative
—vary in terms of how experienced or motivated a decision maker is to make a choice.
What is the lexicographic model?
a model used in the study of consumer decision processes to evaluate alternatives
; the idea that if two products are equal on the most important attribute, the consumer moves to the next most important, and, if still equal, to the next most important, etc.
How many consumer decision making models are there?
(C) Cognitive View or Model – The cognitive view is the best of the
four models
of consumer decision making. This model states that the consumers make decisions on the basis of their own interests and understanding of the market demand and not according to their rational needs or promotional efforts of the marketers.
