What is the compensatory decision rule?

What is the 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 are the key differences between compensatory and Noncompensatory rules when it comes to selecting a product?

A compensatory decision rule asumes that the consumer when evaluating alternatives trades off one characteristic against another. On the other hand, a non-compensatory decision rule choose a product or sevice on the basis of one or a subset of its characteristics regardless of the values of its other attributes.

How do compensatory and non compensatory decision rules vary?

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 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 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 are non compensatory decision rules?

Decision rules are said to be non compensatory when good performance on one evaluative criterion does not offset or compensate from poor performance on another evaluative criterion, of the brand. This approach is used when the consumer establishes minimum acceptable performance standards which each brand must meet.

What factors drive compensatory decision making?

Question: All of the following factors drive compensatory versus noncompensatory decision making EXCEPT: the total price of the items. the importance of the various attributes to the consumer. resource availability the size of the choice set.

What is the lexicographic rule?

What are different levels of consumer decision making?

There are different stages consumer pass through to reach a buying decision making. Consumer decision making process represents a problem-solving approach and involves the following five stages – need recognition, information search, evaluation of alternatives, purchase decision and post-purchase behaviour.

What are the types of consumer decision?

Types of Consumer Decision Making

• Extensive Problem Solving. In extensive decision making, the consumers have no established or set criteria for evaluating a product in a particular category.
• Limited Problem Solving.
• Routinized Response Behavior.
• An Economic View.
• A Passive View.
• A Cognitive View.
• An Emotional View.

What are the main two types of decision rules?

There can be two kinds of Decision Rules, viz., Compensatory rules and Non-compensatory rules.

What is decision rule in research?

A decision rule is a procedure that the researcher uses to decide whether to accept or reject the null hypothesis . For example, a researcher might hypothesize that a population mean is equal to 10. He/she might collect a random sample of observations to test this hypothesis.

How are compensatory rules used in decision making?

Compensatory Rules summated score for each brand. The assumption is that consumer will select the brand that scores the highest among the alternatives evaluated. Compensatory decision allows a positive evaluation of a brand on one attribute to balance out a negative evaluation on some other attribute.

Which is a truer version of the compensatory model?

Some features are clearly more important than others, and every minus may not cancel a plus on some other feature. Therefore, we use a truer version of the compensatory model. This, the second, more systematic approach, is to weigh every product attribute in terms of its relative importance.

What happens if there is no compensatory feature?

If there were one particular feature that we wanted, and if an alternative didn’t have that feature, then it will be out, no matter what other features it had—those other features won’t compensate.

What are the rules of consumer decision making?

Consumer Decision Making – Process, Models, Levels, Decision Rules 1 Consumer Decision Making Process. Consumer Decision making is a process through which the customer selects the most appropriate product out the several alternatives. 2 Levels of Consumer Decision Making. 3 Models/ Four Views of Consumer Decision Making.