What is the difference between compensatory and Noncompensatory 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 are compensatory decision rules?
Compensatory Decision Rules A type of decision rule in which a consumer evaluates each brand in terms of each relevant attribute and then selects the brand with the highest weighted score.
What is a Noncompensatory rule?
Definition. In evaluating alternatives, noncompensatory rules suggest that positive and negative consequences of alternatives do not compensate for each other.
What are non-compensatory strategies?
Non-compensatory strategies are heuristics for decision making
- don’t collect all the relevant information systematically,
- fail to consider the relative importance of various attributes, or.
- do not trade off the benefits of some attributes against the deficits of others.
What are the differences between compensatory and Noncompensatory decision rules quizlet?
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 consumers use compensatory and non-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 5 decision rules?
Consumers use five decision rules: conjunctive, disjunctive, elimination-by-aspects, lexicographic, and compensatory. Consumers frequently use more than one rule to make a single decision.
What are Noncompensatory models?
Non-compensatory models limit trade-offs among attributes, or between attributes and price that preserve a given preference ordering over alternatives. Also, we identify different degrees of departure from the fully compensatory model, with important implications for optimal actions derived from a particular model.
How do consumers use compensatory and non compensatory decision making models?
What is compensatory model?
A multi-attribute model in which one attribute compensates for another in the overall preference for an object or idea.
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 are the differences between punitive and compensatory damages?
Compensatory damages are given to the injured victim to help pay for medical expenses and other damages created, while punitive damages are meant to penalize the at-fault party.
When are decision rules said to be non compensatory?
Non Compensatory Decisions 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.
When do people use a noncompensatory strategy?
When people use a noncompensatory strategy, they select one or more nonnegotiable key characteristics and eliminate all the alternatives that don’t have them. This procedure is repeated until the set of options is narrowed down to a manageable number.
How does a compensatory decision making strategy work?
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.