The paper "Major Decision Making" is a wonderful example of an assignment on marketing. This paper demonstrates the formulation of a decision matrix and the application of the compensatory rule in making the final decision. It commences with the decision matrix and goes ahead to show how three individuals: Mathew, Mary, and Peter, apply it to make individual choices. The choices are later on analyzed in detail and reason for the final decision given. The final part involves the analysis of factors that are used in arriving at the chosen accommodation type.
The assignment demonstrates how choices in the type of accommodation chosen are made. Introduction Human beings are faced with a situation whereby they have to make decisions more often than not. Marketers learn the pattern of individual decision making which they use to target those individuals in the provision of goods and services. This paper outlines the common decision matrix that is used by people when making a selection. It entails selections of accommodations by three different people applying five evaluative criteria on accommodation options available. Accommodation options Homestay accommodation (staying with an Australian family in single or shared rooms)-A$110-270 a week Hostels and guest houses-A$80-135 a week. Shared accommodation-A$70-250 a week Private Rental accommodation-A$100-400 a week Campus accommodation-A$80-250 a week Buying a three-bedroom bushland house in Rockhampton-A$200, 800 Five evaluative criteria Prices Distance from workplace/university Safety/security Access to public transport Need for privacy Creation of Decision Matrix Accommodation options Evaluative criteria Homestay (staying with an Australian family in shared or single rooms)-A$110-270 a week Hostels and guest houses-A$80-135 a week. Shared accommodation -A$70-250 a week Private Rental accommodation -A$100-400 a week Campus accommodation Buying a three-bedroom house at Rockhampton Prices 5 4 5 3 2 1 Distance from workplace or university 3 4 2 1 5 3 Safety/security 1 3 2 4 3 4 Access to public transport 3 5 4 2 1 2 Need for privacy 2 3 1 5 2 5 Evaluative criteria Mathew Mary Peter Prices 5 1 5 Distance from the workplace/university 4 3 3 Safety/security 3 5 4 Access to public transport 2 2 2 Need for privacy 1 4 1 The most preferred accommodation by all respondents is a hotel or guest house since its ranking total is the highest with a score of 18.
Hostels can be a compromised accommodation option for all three respondents. Some of the important evaluative criteria used by the respondents are met by the accommodation option of hostels or guest houses. Nevertheless, it is only Mathew who goes for hostels or guest house, Peter and Mary do not settle for their best option due to other circumstances that creates the need to pick on other options.