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,Short Answer (30%) I. Altermative evaluation is defined as how the consumer pro

ID: 2618741 • Letter: #

Question

,Short Answer (30%) I. Altermative evaluation is defined as how the consumer proceas Information to aive at brand choices. Now suppose you have your choice of new cars to brand A, B, or C. You hve have finalized the four most important new car attributes and their weights, and created the evaluation matrix below. Which new car brand will you likely selocr? (8%) A Brand B Brand C Importance Weight Brand Attributes Styling 0.5 Operating Economy 02 0.1 Warranty Price Brand Scale:1 (low) to 10 (high) 0.2 Important Weight in %

Explanation / Answer

The car which will offer maximum perceived value will be selected. Perceived Value is calculated as sum of :

     = Weight assigned to attribute * Rating of Attribute

Brand of Car

Attributes of Brand

Styling

Operating Economy

Warranty

Price

Perceived Value

A

3 (0.50) +

6 (0.2) +

5 (0.1) +

8 (0.2)

4.8

B

7 (0.50) +

5 (0.2) +

5 (0.1) +

8 (0.2)

6.4

C

4 (0.50) +

7 (0.2) +

6 (0.1) +

8 (0.2)

3.6

As the brand B is offeres maximum perceived value 6.4, sobrand C is ideal choice to buy.

Brand of Car

Attributes of Brand

Styling

Operating Economy

Warranty

Price

Perceived Value

A

3 (0.50) +

6 (0.2) +

5 (0.1) +

8 (0.2)

4.8

B

7 (0.50) +

5 (0.2) +

5 (0.1) +

8 (0.2)

6.4

C

4 (0.50) +

7 (0.2) +

6 (0.1) +

8 (0.2)

3.6