4.9.3.2 Non-compensatory decision rules in the decision-making process
- a. The conjunctive decision rule. A conjunctive decision rule is one where the consumer establishes a separate, minimally acceptable level as a cut-off point for each attribute.
- b. The disjunctive decision rule. A disjunctive rule is the mirror image of the conjunctive rule. ...
- c. The lexicographic decision rule. ...
What is conjunctive decision rule in economics?
What is the conjunctive decision rule? Conjunctive decision rule = A type of decision rule for evaluating alternatives where consumers establish minimally acceptable levels of performance for each important product attribute and accept an alternative only if it meets the cut-off level for each attribute. Click to see full answer.
What is the conjunctive rule in marketing?
The conjunctive rule suggests that consumers establish a minimum acceptable level for each choice criterion and accept an alternative only if it equals or exceeds the minimum cutoff level for every criterion. [1] ^ American Marketing Association, AMA Dictionary.
What is the difference between compensatory rule and conjunctive rule?
The difference between is as follows: Compensatory rule: A consumer determines a brand or model on basis of the relevant attributes and scores each brand according to their requirement. Conjunctive rule: In this a consumer establishes a minimum acceptable level for each attribute.
What are the consumer decision rules of choice?
Consumer Decision Rules choices. These rules reduce the burden of making complex decisions by providing guidelines or routines that make the process less taxing. 1. Compensatory Rules summated score for each brand. The assumption is that consumer will select the brand that scores the highest among the alternatives evaluated.
What is the disjunctive decision rule?
The disjunctive decision rule establishes a minimum level of performance for each important attribute (often a fairly high level). All brands that surpass the performance level for any key attribute are considered acceptable.
What is lexicographic decision 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 compensatory decision rule example?
For instance, a plane ticket that costs $50 more (negative attribute) may ultimately be the better choice because it is a direct flight (positive attribute). Compensatory decisions are rational. However, people don't make compensatory decisions.
What is the conjunctive model?
the idea that consumers establish minimum attribute levels which acceptable brands must possess; when about to make a purchase, they will consider only those brands that exhibit a conjunction of all the minimum requirements.
What is conjunctive heuristic?
Conjunctive heuristic means the consumer sets a minimum acceptable cutoff level for each attribute and chooses the first alternative that meets the minimum standard for all attributes.
What is lexicographic order example?
Lexicographical order is nothing but the dictionary order or preferably the order in which words appear in the dictonary. For example, let's take three strings, "short", "shorthand" and "small". In the dictionary, "short" comes before "shorthand" and "shorthand" comes before "small". This is lexicographical order.
What is compensatory and non-compensatory decision rules?
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 non-compensatory rule?
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.
What is elimination by aspects decision rule?
a theory of decision making holding that a choice is reached through a series of eliminations. At each stage, the decision maker selects an attribute or aspect perceived to be important and eliminates alternatives lacking that attribute.
What do you mean by conjunctive?
adjective. serving to connect; connective: conjunctive tissue. conjoined; joint: a conjunctive action. Grammar. (of a mode) subjunctive.
What is compensatory decision making?
Compensatory decision making involves identifying a set of attributes applicable to the decision, assigning a relative importance or weight to each attribute, computing an overall score for each option based on the attribute weight, and selecting the option with the best score.
What is the disjunctive model?
a model used in the study of consumer decision processes to evaluate alternative brands; the idea that consumers, about to make a purchase, evaluate competing brands on the basis of one or a few attributes, ignoring their standing on other attributes.
What are consumer decision rules?
Consumer decision rules are the procedures used by consumers to facilitate brand (or other consumption related) choices. These rules reduce the burden of making complex decisions by providing guidelines or routines that make. the process less taxing. Two Categories of Consumer Decision Rules are: 1.
What is a compensatory decision?
Compensatory decision allows a positive evaluation of a brand on one attribute. to balance out a negative evaluation on some other attribute. 2. Non-Compensatory Rules. Non Compensatory Decision Rule does not allow consumers to balance positive evaluation of brand on one.
