McGraw-Hill/Irwin

4-1

Copyright 2008 by The McGraw-Hill Companies, Inc. All rights reserved.

A Framework for Consumer Analysis

McGraw-Hill/Irwin

4-2 Copyright 2008 by The McGraw-Hill Companies, Inc.

All rights reserved.

Discussion Outline
Three elements of consumer analysis Relationships among affect and cognition, environment, and behavior Role of Consumer Research and Analysis in Marketing Strategy Levels of Consumer Analysis

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Three Elements for Consumer Analysis

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Consumer Affect and Cognition

Mental responses consumers exhibit toward stimuli and events in their environment Affect Refers to feelings about stimuli and events Responses can be favorable or unfavorable Responses can vary in intensity Cognition Refers to thinking Mental structures and processes involved in thinking, understanding, and interpreting stimuli and events Aspects of cognition are conscious and automatic
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Consumer Behavior
Behavior- Physical actions of consumers that can be directly observed and measured by others Also called overt behavior Critical for marketing strategy

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Consumer Environment
Everything external to consumers that influences what they think, feel, and do Includes: Social stimuli Physical stimuli Important to marketing strategy because it is the medium in which stimuli are placed to influence consumers

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Relationships among Affect and Cognition, Behavior, and the Environment

Each of the three elements: Can be either a cause or an affect on a change in one or more of the other elements Represent a reciprocal system

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Relationships among Affect and Cognition, Behavior, and the Environment cont.
Viewing consumer processes as a reciprocal system has five implications: All three elements and their relationships must be considered in a comprehensive analysis Any of the three elements may be the starting point for consumer analysis View is dynamic; recognizes that consumers can continuously change Consumer analysis can be applied at several levels Highlights the importance of consumer research and analysis in developing marketing strategies

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The Wheel of Consumer Analysis

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Levels of Consumer Analysis

The Wheel of Consumer Analysis is a flexible tool that can aid in understanding the different levels: Societies Industries Market segments Individual consumers

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End of Part 1
Thank you!

Consumers Product Knowledge and Involvement

McGraw-Hill/Irwin

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

Why do we buy what we buy?

Find a partner. Ask your partner to identify his/her favorite brand of jeans. Pick one only. Ask him/her to explain why he or she likes this brand. You have 5 minutes.

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Levels of Product Knowledge cont.

Four levels of product knowledge Product class Product form Brand Model/features

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Levels of Product Knowledge cont.

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Levels of Product Knowledge cont.

More abstract Product Product Class Form Less abstract

Brand Model/Features Apple iPod

Personal CD/MP3 Dockers Jeans

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Consumers Product Knowledge

Three types of product knowledge 1. Bundle of attributes Concrete attributes Abstract attributes

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Consumers Product Knowledge

Three types of product knowledge cont. 2. Bundle of benefits Functional consequences Psychosocial consequences Psychological consequences Social consequences Benefit segmentation

Truth or Consequences
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Consumers Product Knowledge

Three types of product knowledge cont. 2. Bundle of benefits cont Perceived risks Determined by 1. Degree of unpleasantness 2. Likelihood of occurrence Types Physical Financial Functional Psychosocial
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Consumers Product Knowledge

Three types of product knowledge cont 3. Value Satisfaction Values Instrumental Terminal Core Self-schema

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Instrumental and Terminal Values of Americans

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Consumers Product Knowledge

Three types of product knowledge: 1. Bundle of attributes 2. Bundle of benefits 3. Value Satisfaction Example: Nike Running Shoes

Arch support Tread design

Long-wearing Run faster Be physically fit Live longer

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Means-End Chains of Product Knowledge

Values
Psychosocial consequences Links consumers knowledge about product attributes with their knowledge about consequences and values Means to an endWhat does this attribute do for me?

Functional consequences
Attributes

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Means-End Chains of Product Knowledge

Example: business suit Values Psychosocial consequences Functional consequences Attributes Self esteem, respected by others

Feel well groomed and professional

Present conservative, professional appearance Nice fabric, good fit
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MeansEnd Chain Model of Consumers Product Knowledge

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Examples of MeansEnd Chains

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Gillette and the Formation of the Following Means-End Chain

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Means-End Chains of Product Knowledge cont.

Identifying consumers means-end chains One-on-one personal interviews Two basic steps involved 1. Identify important attributes Direct elicitation Free-sort task Triad task 2. Laddering Marketing implications
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Identification Key Attributes Considered by Consumers

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Example of a Laddering Interview

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Digging for Deeper Consumer Understanding

Focus groups The ZMET approach to consumer knowledge The ZMET interview Marketing implications

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Announcements
Submission of Consumer Journal is on JULY 8, 2011 (FRIDAY) Your journal must have AT LEAST 10 Entries. Entries are based on DATES. Meaning you must have entries equivalent to 10 days.

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End of Part 2

Time for a short quiz

Thank you

Involvement
Consumers perceptions of importance or personal relevance for an object, event, or activity A motivational state Felt involvement

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Involvement cont.
Focus of involvement Products and brands Physical objects People Activities or behaviors

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Basic Model of Consumer Product Involvement

Consumer characteristics

Product characteristics

Situational context

Intrinsic self-relevance

Situational self-relevance

Involvement Interpretation & integration

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Marketing Implications
Understanding the key reasons for purchases Understanding the consumer-product relationship

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Marketing Implications cont.

Four market segments with different levels of intrinsic self-relevance for a product category and brand Brand loyalists Routine brand buyers Information seekers Brand switchers

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Marketing Implications cont.

Influencing intrinsic self-relevance Influencing situational self-relevance

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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 called means-end chains Consumers feelings of involvement are determined by intrinsic self-relevance the means-end knowledge stored in memory Situational factors in the environment influence the content of activated means-end chains and thereby affect the consumer involvement.
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Announcements
Submission of Consumer Journal is on JULY 16, 2012 (Monday) Your journal must have AT LEAST 10 Entries. Entries are based on DATES. Meaning you must have entries equivalent to 10 days.

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Assignment
Interview any family member (mother, father, older/younger brother or sister, etc.) who uses. Construct a means-end chain using the steps discussed for conducting an individual interview. The means-end chain should be for ONE attribute only. Attribute Functional consequence psychosocial consequence value. Write your answers on a sheet of yellow pad paper.
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Assignment
Format: Name of respondent: Relationship: (your father, mother, brother, etc) Age: Attributes: (list down all the attributes they consider when deciding which online game to play). Pick one attribute that you will pursue for means-end chain Functional consequence: Psychosocial consequence: Value
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End of Lesson 2
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