Chapter 16 Consumer Behavior and Product Strategy

Product Related Affect/Cognition Consumer Satisfaction Consumers respond to Expectations Performance The discrepancy or difference between expectations and performance. Positive disconfirmation = satisfaction Negative disconfirmation = dissatisfaction

A Expectancy Disconfirmation Approach to Satisfaction Prepurchase performance expectations Post purchase performance perceptions Disconfirmation Satisfaction / dissatisfaction

Product Related Behavior Brand Loyalty/Variety Seeking Relates to the pattern of behavior, especially purchase behavior, over a period of time.

Categories of Brand Commitment and Purchasing Patterns Loyalty Variety Seeking High Consumer Commitment Repeat Purchase Varied Behavior Low Single Multiple Number of brands purchased in a particular time period

Brand Loyalty and Usage Rate light users Brand-loyal heavy users Light usage Heavy usage Brand-indifferent light users Brand-indifferent heavy users Variety Seeking

Strategies for Usage Rate Matrix Brand-loyal heavy user: Encourage loyalty and encourage switching to our brand. Brand-loyal light user: Encourage greater usage rate. Variety seeking heavy user: Make firm’s brand a salient attribute. Variety seeking light user: Increase salience of brand name as attribute and increase usage.

The Adoption curve: Consumer Attributes Innovators Early Early Late Laggards adopters adopters adopters 3-5% 10-15% 34% 34% 5-15% 0% 100% % Adoption rate Time

Product Strategy: Product Attributes Compatibility How well does this product fit consumers’ current affect, cognitions and behavior? Triability Can the consumer try the product on a limited basis with little risk? Observability Do consumers see or otherwise sense this product? Speed How soon do consumers experience the benefits of this product?

Product Attributes (continued) Simplicity How easy is it for consumers to understand and use this product? Relative advantage What makes this product better than competitive offerings? Product symbolism What does this product mean to consumers? Marketing strategy What is the role of other marketing mix elements in creating a functional or image-related relative advantage?