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Product Knowledge and Involvement

Product Knowledge and Involvement. 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.

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Product Knowledge and Involvement

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  1. Product Knowledge and Involvement 1

  2. 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

  3. 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.

  4. Levels of Product Knowledge Product Class Product Form Brand Model/Feature • 1-pound can • 8-ounce jar Coffee • Ground • Instant • Folgers • Maxwell House Autos • Sedan • Sports Car • Sports Sedan • Ford Taurus • Mazda Miata • BMW • Station wagon, Air & power steering • Leather seats, Air & 5 speeds • Model 325e, Air & Automatic Trans

  5. Bic • Pilot • $0.79 model, regular tip • $0.99 model, extra-fine tip • Ballpoint • Felt tip Pens Levels of Product Knowledge Product Class Product Form Brand Model/Feature Beer • Imported • Light • Low alcohol • Heineken • Coors Lite • Sharps • Dark • Kegs • 12-ounce cans

  6. PRODUCT LIFE CYCLE STAGES OF THE DECISIONS PROCESS FOR INSTANT COFFEE 1 8 0 - 1 6 0 - 1 4 0 - 1 2 0 - MILLIONS OF POUNDS 1 0 0 - 8 0 - 6 0 - 4 0 - 2 0 - | | | | | | | | | | | 1 9 4 8 1 9 5 0 1 9 5 2 1 9 5 4 1 9 5 6 1 9 5 8 1 9 6 0 1 9 6 2 1 9 6 4 1 9 6 6 1 9 6 8

  7. Product Life Cycle Characteristics IntroductionGrowthMaturityDecline Sales LowFastSlowDecline GrowthGrowth Profits Cash Flow Customer Description Number of Competitors

  8. Product Life Cycle Characteristics IntroductionGrowthMaturityDecline Strategic Focus Marketing Expenditures Marketing Emphasis Distribution Intensity Price Product

  9. Types of Product Knowledge 1. Bundle of Attributes - Tangible (concrete) or intangible (abstract) characteristics of the product Arch support Tread design Nike running shoes $89.95 Lacing pattern

  10. Types of Product Knowledge 2. Bundle of Benefits - Consequences or outcomes when purchasing and using products & services (Functional, Psychosocial) Long-wearing Nike running shoes Stabilize heel Run faster

  11. Types of Perceived Risk Benefit risks: 1. Functional 2. Physical 3. Financial 4. Social 5. Psychological

  12. 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

  13. 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.

  14. Functional Consequences Psychosocial Consequences Values Means-End Chains of Product Knowledge Attributes Less Level of Abstraction More

  15. Be well groomed Be attractive Close shave Relaxed Not stressed Smooth, soft shave Be comfortable Means-End Chain Example: Gillette Sensor Razor CONSEQUENCES FUNCTIONALPSYCHOSOCIAL ATTRIBUTES VALUES Spring suspension for twin blades Lubricating strip

  16. 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

  17. 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 4, 5, 6, 7 3. Pleasure value of the product category 4. Sign value of self identify 11, 12, 13, 15, 16 8, 9, 10

  18. Involvement Profiles of French Consumers (100 = average) Negative Pleasure Sign Consequences Mispurchase Value 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 8290 114 118

  19. Self-concept -- basic values, goals, needs • Personality traits • Expertise • Time commitment • Price • Symbolic meanings • Potential for poor performance • Purchase situation • Time pressure • Social environment • Physical environment Model of Consumer Product Involvement Consumer characteristics Product characteristics Environmental characteristics

  20. Intrinsic Self Relevance Interpretation & Integration Processes Involvement Situational Self Relevance Model of Consumer Product Involvement Consumer characteristics Product characteristics Environmental characteristics

  21. Factors that Influence Involvement Lower Involvement Higher Involvement (Toothpaste) (Automobile) Symbolic meanings Few Many regarding self: Social visibility of product Time commitment to the purchase: Price: Potential harm to self and others Potential for poor performance:

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