Transcript No Slide Title

Product Knowledge
and Involvement
1 1
Hierarchy of Product Competition
• Generic Competition – Trade-offs
between customer expenditure to
different problems that require a
solution
• Class Competition – Different
approaches to providing customer
solutions to a common problem
2
Hierarchy of Product Competition (cont)
• Form Competition – Products
perceived as addressing a problem in a
similar way by providing comparable
benefits
• Brand Competition – Products from an
identified supplier that offers a particular
value-proposition, set of options, and
distribution system.
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Levels of Product Knowledge
Product
Class
Coffee
Autos
Product
Form
•Ground
•Instant
Brand
•Folgers
•Maxwell House
•Sedan
•Ford Taurus
•Sports Car
•Mazda Miata
•Sports Sedan •BMW
Model/Feature
•1-pound can
•8-ounce jar
•Station wagon, Air &
power steering
•Leather seats, Air & 5
speeds
•Model 325e, Air &
Automatic Trans
4
Levels of Product Knowledge
Product
Class
Product
Form
Beer
•Imported
•Light
•Low
alcohol
Pens
•Ballpoint
•Felt tip
Brand
•Heineken
•Coors Lite
•Sharps
•Bic
•Pilot
Model/Feature
•Dark
•Kegs
•12-ounce cans
•$0.79 model,
regular tip
•$0.99 model,
extra-fine tip
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PRODUCT LIFE CYCLE STAGES OF THE
DECISIONS PROCESS FOR INSTANT COFFEE
MILLIONS OF POUNDS
18016014012010080604020|
1948
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1950
|
1952
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1954
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1956
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1958
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1960
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1962
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1964
1966 1968
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Product Life Cycle Characteristics
Sales
Introduction
Growth
Maturity
Decline
Low
Fast
Growth
Slow
Growth
Decline
Profits
Cash
Flow
Customer
Description
Number of
Competitors
7
Product Life Cycle Characteristics
Introduction
Growth
Maturity
Decline
Strategic
Focus
Marketing
Expenditures
Marketing
Emphasis
Distribution
Intensity
Price
Product
8
Types of Product Knowledge
1. Bundle of Attributes - Tangible (concrete) or
intangible (abstract) characteristics of the
product
Arch
support
Nike
running
shoes
Tread
design
$89.95
Lacing
pattern
9
Types of Product Knowledge
2. Bundle of Benefits - Consequences or
outcomes when purchasing and using
products & services (Functional, Psychosocial)
Longwearing
Nike
running
shoes
Stabilize
heel
Run
faster
10
Types of Perceived Risk
Benefit risks:
1. Functional
2. Physical
3. Financial
4. Social
5. Psychological
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Types of Product Knowledge
3. Value Satisfaction - Cognitive
representations of important broad life goals
that consumers are trying to achieve
Be
physically
fit
Nike
running
shoes
Have good
health
Live a long
life
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The Means-End Chain
A means-end chain is a knowledge
structure that connects consumers’
meanings about product attributes,
consequences, and values.
The means-end chain provides a more
complete understanding of consumers’
product knowledge.
13
Means-End Chains of
Product Knowledge
Functional
Consequences
Psychosocial
Consequences
Values
Level of Abstraction
Attributes
Less
More
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Means-End Chain Example:
Gillette Sensor Razor
ATTRIBUTES
CONSEQUENCES
FUNCTIONAL PSYCHOSOCIAL
VALUES
Spring
suspension
for twin
blades
Close shave
Be well
groomed
Be
attractive
Lubricating
strip
Smooth, soft
shave
Be
comfortable
Relaxed
Not
stressed
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Consumers’ Product Involvement
The perceived importance or
personal relevance of an object,
event, or activity
Involvement with a product or
brand has both cognitive and
affective aspects
16
Components of Involvement
1. Importance and risk (the perceived
importance of the product and the
consequences of a bad purchase)
1, 2, 3, 14
2. Probability of making a bad
purchase
3. Pleasure value of the product
category
4, 5, 6, 7
4. Sign value of self identify
11, 12, 13, 15, 16
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8, 9, 10
Involvement Profiles of French Consumers
(100 = average)
Negative
Pleasure
Sign
Value
Consequences
Mispurchase
Value
Detergents
79
82
56
63
Dresses
121
112
147
181
TV Sets
112
100
122
95
Vacuum Cleaners 110
112
70
78
Champagne
109
120
125
125
Yogurt
86
83
106
78
Facial Soap
82
90
114
118
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Model of Consumer Product Involvement
• Self-concept -- basic values, goals, needs
Consumer
characteristics
• Personality traits
• Expertise
• Time commitment
Product
characteristics
• Price
• Symbolic meanings
• Potential for poor performance
• Purchase situation
Environmental
characteristics
• Time pressure
• Social environment
• Physical environment
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Model of Consumer
Product Involvement
Consumer
characteristics
Product
characteristics
Environmental
characteristics
Intrinsic
Self
Relevance
Involvement
Situational
Self
Relevance
Interpretation
& Integration
Processes
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Factors that Influence Involvement
Lower Involvement
(Toothpaste)
Symbolic meanings
regarding self:
Few
Higher Involvement
(Automobile)
Many
Social visibility
of product
Time commitment to
the purchase:
Price:
Potential harm to
self and others
Potential for poor
performance:
21