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4.3.3 Evaluation of Alternatives

In the consumer decision-making process, the evaluation of alternatives is the third critical stage. It follows need recognition and pre-purchase information search. In this stage, consumers compare different brands or products based on specific criteria to decide which best fits their needs. Here, we delve into the details of this stage and its implications for marketers.

Key Components in the Evaluation of Alternatives

1. List of Brands (Total Set)

  • Definition: The total set includes all brands available in a particular category. For example, in the TV market, the total set may consist of 50 different brands.
  • Process: From this large set, consumers narrow down options through awareness and selection criteria.

2. Evaluation Criteria

  • Consumers use various criteria to evaluate brands, such as:
    • Price: Affordability or budget constraints.
    • Features: Size, picture quality, sound quality, etc.
    • Brand Name: Trust and recognition.
    • Warranty: Guarantee terms and service support.
    • Service Accessibility: Proximity and ease of accessing support.
  • Note: The criteria vary by individual based on their preferences and needs.

3. Decision Rules

  • After establishing evaluation criteria, consumers use decision rules to weigh their options:
    • Compensatory Rules: Consumers consider multiple criteria, allowing strengths in one area to compensate for weaknesses in another.
    • Non-Compensatory Rules: Consumers focus on one decisive criterion, which is non-negotiable.

The Evaluation Process: Stages and Sets

  1. Awareness and Unawareness Sets
  2. Awareness Set: Brands the consumer knows.
  3. Unawareness Set: Brands unknown to the consumer, effectively eliminated from consideration.

Marketing Insight: To stay in the consumer's consideration, brands must ensure awareness through targeted marketing. Identify where your target consumers consume information (e.g., social media, TV, magazines) and ensure visibility.

  1. Evoked, Inept, and Inert Sets
  2. Inept Set: Brands consumers actively reject (e.g., too expensive, poor service).
  3. Inert Set: Brands consumers are indifferent to (e.g., lack of information or interest).
  4. Evoked Set: Brands consumers consider seriously.

Marketing Insight: The goal is to move from the awareness set into the evoked set, also known as the consideration set. This requires addressing reasons for rejection and indifference, such as affordability, availability, and effective promotion.

Decision Rules in Detail

1. Compensatory Decision Making

  • Definition: Consumers assess all criteria and make an overall judgment based on a weighted average of strengths and weaknesses.
  • Example: A TV with excellent picture quality and size but a high price might still be chosen if its overall value is strong.
  • Usage: More common with high-involvement purchases where multiple attributes matter.
  • Marketing Application: Highlight multiple strengths of the product across all key attributes.

2. Non-Compensatory Decision Making

  • Definition: Consumers focus on a single, non-negotiable criterion and choose the best option for that criterion.
  • Example: A gamer may prioritize refresh rate and image clarity above all else.
  • Usage: Common with specific needs or when consumers have strong preferences.
  • Marketing Application: Identify the critical criterion for your target audience and emphasize it in marketing campaigns.

Practical Implications for Marketers

1. Understanding the Consumer Journey

  • The decision-making process starts long before the purchase. Marketers must intervene effectively at each stage:
    • Need Recognition: Highlight pain points and needs your product can solve.
    • Pre-Purchase Information Search: Provide accessible, trustworthy information.
    • Evaluation of Alternatives: Showcase why your product is the best choice.

2. Strategies to Enter the Evoked Set

  • Use surveys or social media listening tools to understand reasons for consumer rejection or indifference.
  • Address barriers (e.g., price, awareness, service availability) through tailored strategies.
  • Promote your product effectively in channels relevant to your target audience.

3. Positioning Based on Decision Rules

  • If consumers use compensatory rules, focus on multiple strong attributes.
  • If consumers use non-compensatory rules, highlight and excel in one decisive attribute.
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