ADPRAC 3 - Lecture 3

download ADPRAC 3 - Lecture 3

of 28

Transcript of ADPRAC 3 - Lecture 3

  • 8/3/2019 ADPRAC 3 - Lecture 3

    1/28

    Gillette Knows Shaving

    4-1

    World Shaving

    HeadquartersMEN

    Lather upfaces

    Shave off

    .015 of an

    inch their

    10,000

    whiskers

    grew in the

    previous 24

    hours

    WOMEN

    Shower room

    Shave

    Legs

    UnderarmsBikini area

    Evaluates:

    Closeness of

    shave

    Sharpness ofblade

    Smoothness of

    glide

    Ease of handling

  • 8/3/2019 ADPRAC 3 - Lecture 3

    2/28

    4-2

    It was a hit with

    men!

    Less successful with women:

    -handles slipped in the

    shower or bath-Difficult to maneuver over

    curved surfaces of womens

    legs

  • 8/3/2019 ADPRAC 3 - Lecture 3

    3/28

    4-3

    Sensor for Women

    Broad, ridged handleNonslip fit in the palm of a

    womans hand

    Lubricating strip with aloe

    Pivoting twin-blade cartridge

  • 8/3/2019 ADPRAC 3 - Lecture 3

    4/28

    This description of Gillettes shaving

    business illustrates the importance of

    product attributes in marketing strategy

    and the need for marketers to understand

    what consumers think about product

    attributes and related concepts.

    4-4

  • 8/3/2019 ADPRAC 3 - Lecture 3

    5/28

    Consumers ProductKnowledge andInvolvement

    Copyright 2005 by The McGraw-Hill Companies, Inc. All rights reserved.McGraw-Hill/Irwin

    Chapter 4

  • 8/3/2019 ADPRAC 3 - Lecture 3

    6/28

    4-6

    Levels of Product Knowledge cont.

    1. Product class

    2. Product form

    3. Brand

    4. Model/features

  • 8/3/2019 ADPRAC 3 - Lecture 3

    7/28

    Levels of Product Knowledge cont.

    More abstract Less abstract

    Product Class Product Form Brand Model / Features

    Coffee Ground Folgers 1-pound can

    Whole bean Starbucks 12oz. Bag, decaf

    Pens Ballpoint Bic P30.00, red ink

    Roller Ball Pilot P40.00 extra fine

    tip

    4-7

  • 8/3/2019 ADPRAC 3 - Lecture 3

    8/28

    4-8

    More abstract Less abstract

    Product Class Product Form Brand Model / Features

    Multi mediaplayer

    Personal

    CD/MP3

    Apple iPod

    Jeans

    Dockers

  • 8/3/2019 ADPRAC 3 - Lecture 3

    9/28

    Types of Product Knowledge

    4-9

  • 8/3/2019 ADPRAC 3 - Lecture 3

    10/28

    4-10

    Types of Product Knowledge

    1. Bundle of attributes

    Concrete attributes

    Abstract attributes

  • 8/3/2019 ADPRAC 3 - Lecture 3

    11/28

    4-11

    Types of Product Knowledge

    2. Bundle of benefits

    a. Functional consequences

    b. Psychosocial consequences

    Psychological consequences Social consequence

    c. Benefit segmentation

  • 8/3/2019 ADPRAC 3 - Lecture 3

    12/28

    4-12

    Types of Product Knowledge

    d. Perceived risks

    Determined by

    1. Degree of unpleasantness2. Likelihood of occurrence

    Types

    1. Physical

    2. Financial

    3. Functional

    4. Psychosocial

  • 8/3/2019 ADPRAC 3 - Lecture 3

    13/28

    4-13

    Types of Product Knowledge

    3. Value Satisfaction

    a. Values

    Instrumental Terminal

    Core

    Self-schema Strong affective responses

  • 8/3/2019 ADPRAC 3 - Lecture 3

    14/28

    4-14

    Types of Product Knowledge

    Three types of productknowledge:

    1. Bundle of attributes

    2. Bundle of benefits

    3. Value Satisfaction

    Example: NikeRunning Shoes

    Arch supportTread design

    Long-wearingRun faster

    Be physically fitLive longer

  • 8/3/2019 ADPRAC 3 - Lecture 3

    15/28

    MEANS-END CHAIN(Product Knowledge)

    4-15

    a knowledge structure that connects

    consumers meanings about product

    attributes, consequences, and values.

    provides a more complete understanding of

    consumers product knowledge.

  • 8/3/2019 ADPRAC 3 - Lecture 3

    16/28

    4-16

    Means-End Chains of ProductKnowledge

    Links consumers

    knowledge about product

    attributes with their

    knowledge aboutconsequences and values

    Means to an endWhat

    does this attribute do for

    me?

    Attributes

    Psychosocialconsequences

    Values

    Functional

    consequences

  • 8/3/2019 ADPRAC 3 - Lecture 3

    17/28

    4-17

    Means-End Chains of ProductKnowledge

    Attributes

    Psychosocialconsequences

    Values

    Functionalconsequences

    Self esteem, respected by

    others

    Feel well groomed and

    professional

    Present conservative,professional appearance

    Nice fabric, good fit

    Example: business suit

  • 8/3/2019 ADPRAC 3 - Lecture 3

    18/28

    4-18

    Identifying consumers means-end chains

    1. One-on-one personal interviews

    a. Two basic steps involved

    1. Identify important attributes2. Laddering

  • 8/3/2019 ADPRAC 3 - Lecture 3

    19/28

    4-19

    Involvement

    Consumers perceptions of importance or personalrelevance for an object, event, or activity

    A motivational state

    Felt involvement

  • 8/3/2019 ADPRAC 3 - Lecture 3

    20/28

    4-20

    Involvement cont.

    Focus of involvement

    Products and brands

    Physical objects

    People Activities or behaviors

  • 8/3/2019 ADPRAC 3 - Lecture 3

    21/28

    4-21

    Basic Model of Consumer ProductInvolvement

    Consumercharacteristics

    Involvement

    Intrinsicself-relevance

    Productcharacteristics

    Situationalcontext

    Situationalself-relevance

    Interpretation &integration

  • 8/3/2019 ADPRAC 3 - Lecture 3

    22/28

    HIGH

    INVOLVEMENT

    LOW EXPERIENCE LIMITED PROBLEM

    SOLVING

    BRAND LOYALTYHIGH

    EXPERIENCE

    EXTENDED PROBLEM

    SOLVING

    LOW

    INVOLVEMENT

    HABIT OR

    VARIETY SEEKING

    INVOLVEMENTAND PROBLEM-SOLVING

  • 8/3/2019 ADPRAC 3 - Lecture 3

    23/28

    4-23

    Marketing Implications

    Understanding the key reasons for purchases

    Understanding the consumer-product relationship

  • 8/3/2019 ADPRAC 3 - Lecture 3

    24/28

    4-24

    Marketing Implications cont.

    Four market segments with different levels ofintrinsic self-relevance for a product category and

    brand

    Brand loyalists Routine brand buyers

    Information seekers

    Brand switchers

  • 8/3/2019 ADPRAC 3 - Lecture 3

    25/28

    4-25

    Marketing Implications cont.

    Influencing intrinsic self-relevance

    Influencing situational self-relevance

  • 8/3/2019 ADPRAC 3 - Lecture 3

    26/28

    4-26

    Summary

    Consumers dont buy products to get attributes Consumers think about products in terms of their

    desirable and undesirable consequences, benefits,and perceived risks

    Consumers form knowledge structures calledmeans-end chains

    Consumers feelings of involvement are determinedby intrinsic self-relevance the means-end

    knowledge stored in memory Situational factors in the environment influence the

    content of activated means-end chains and therebyaffect the consumer involvement.

  • 8/3/2019 ADPRAC 3 - Lecture 3

    27/28

    Seatwork

    4-27

    More abstract Less abstract

    Product Class Product Form Brand Model / Features

    Carbonated

    Drink

    Cola 1.

    2.

    3.

    1.

    2.

    3.

    1. 1. SanMiguelHeineken

    Beer na Beer

    DarkKeg

    Light

    12-ozcan

    1. Provide answers after each number

  • 8/3/2019 ADPRAC 3 - Lecture 3

    28/28

    2. Create a means-end chain for your choice of bath soap. Doladdering of yourself to identify your means-end chain. Label

    attributes, consequences, and values that you identify.

    3. Identify one way that marketers can influence consumers

    situational relevance, and discuss how this will affectconsumers overall level of involvement.

    4. Give 2 examples for each of the following and explain why

    you chose them:

    a. Products that need extended problem solving

    b. Products that require limited problem solving

    c. Most likely to attract brand loyalty

    d. Most likely to form habit

    e. Most likely to form variety seeking4-28