Compensatory Rule


In evaluating alternatives, the compensatory rule suggests that a consumer will select the alternative with the highest overall evaluation on a set of choice criteria. Criteria evaluations are done separately and combined arithmetically such that positive evaluations can offset or balance (compensate for) negative evaluations. This is also called compensatory integration procedure, compensatory model, and compensatory process.[1]

See also



  1. ^ American Marketing Association, AMA Dictionary.

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