Provide two decision-making examples: one of an occasion when a consumer might use a compensatory decision rule, and one when the consumer might use a noncompensatory decision rule. For each, briefly identify the characteristics of the decision that would make a compensatory or noncompensatory rule the best choice. Be specific.

Responses will vary widely. The discussion should include an understanding of the terms compensatory and noncompensatory. A compensatory decision rule assumes that the consumer, when evaluating alternatives, trades off one characteristic against another, such that good characteristics compensate for bad characteristics. When a consumer uses a noncompensatory decision rule, he or she chooses a product or service on the basis of one characteristic or one subset of a characteristic, regardless of the values of its other attributes.