Question

Chen Lo uses a decision rule that says "Only buy well-known brand names" when selecting a set of golf clubs. He does not look at price, the store, or even discounts when purchasing clubs. Chen Lo's purchasing pattern is an example of a consumer using a ________.

Answer 1

Answer:

Non compensatory decision

Explanation:

A decision is non compensatory when good performance on one criterion does not offset from poor performance on another evaluative criterion.

In other words, the consumer only focuses in one criterion to make his/her decision (because that criterion is important to him/her) and it doesn't matter how the product compares to other in other criterions (it can happen that based on another criterion, the product is not as good as another one but the client doesn't care since the attention is focused on just one place)

In this example, Chen Lo buys only well-know golf clubs brand names, and he guides his decisions based on this rule which only cares about one criterion (how well-known a brand is), the golf clubs he uses might be more expensive or others might have discounts (other criterions such as price and discounts) but he doesn't even look at these because his attention is focused on only the name of the brand.

Thus, he is using a non compensatory decision.