1. Copyright © Cengage Learning. All rights reserved.4 | 1 Chapter 4 Knowledge and Understanding

2. 4 | 2 Copyright © Cengage Learning. All rights reserved. Learning Objectives 1.Connection between consumer knowledge and consumer understanding. 2.Schemas, associations, images, categories, and prototypes. 3.Categorization and comprehension. 4.How product features, price, and other marketing elements induce consumers to make inferences about products.

3. 4 | 3 Copyright © Cengage Learning. All rights reserved. Chapter Overview: Knowledge and Understanding (Exhibit 4.1)

4. 4 | 4 Copyright © Cengage Learning. All rights reserved. Overview of Knowledge and Understanding Knowledge content Knowledge structure Categorization Comprehension

5. 4 | 5 Copyright © Cengage Learning. All rights reserved. Knowledge Content Schemas and Associations - Types of associations - Favorability - Uniqueness - Salience Types of schemas Images Scripts

6. 4 | 6 Copyright © Cengage Learning. All rights reserved. Images Brand image Brand’s personality Brand extension Licensing Brand alliance Protecting brand images

7. 4 | 7 Copyright © Cengage Learning. All rights reserved. Brand Personality Framework (Exhibit 4.4)

8. 4 | 8 Copyright © Cengage Learning. All rights reserved. Marketing Implications Creating new schemas, images, & personalities –Brand extensions –Licensing –Brand alliances Developing existing schemas, images, & personalities Changing schemas, images, & personalities Protecting brand images

9. 4 | 9 Copyright © Cengage Learning. All rights reserved. Scripts Special type of schemas that represent our knowledge of a sequence of actions involved in performing an activity –Helps marketers understand how consumers buy and use an offering –May want consumer to consider brand as part of scripted activity

10. 4 | 10 Copyright © Cengage Learning. All rights reserved. Knowledge Structure Categories and their structures Taxonomic structures Goal-derived structures Why consumers differ in their knowledge

11. 4 | 11 Copyright © Cengage Learning. All rights reserved. Taxonomic Categories and Their Structure Graded structure Position to prototype - Close - Away - Competitive - Retail store and site design What affects prototypicality? Correlated associations Hierarchical structure

12. 4 | 12 Copyright © Cengage Learning. All rights reserved. Hierarchical Structure Levels Superordinate Basic Subordinate

13. 4 | 13 Copyright © Cengage Learning. All rights reserved. Taxonomic Category Structure (Exhibit 4.6)

14. 4 | 14 Copyright © Cengage Learning. All rights reserved. Goal-Derived Categories Things belong in the same category if they fulfill same consumer goal.

15. 4 | 15 Copyright © Cengage Learning. All rights reserved. Construal Level Theory Low-level construal—concrete High-level construal—abstract

16. 4 | 16 Copyright © Cengage Learning. All rights reserved. Why Consumers Differ in Their Knowledge Cultural system –Associations linked to concept –Category members –Category prototypes –Correlated associations –Goal-derived categories Level of expertise

17. 4 | 17 Copyright © Cengage Learning. All rights reserved. Using Knowledge to Understand— Categorization Inferences Elaboration Evaluation Consideration and choice Satisfaction

18. 4 | 18 Copyright © Cengage Learning. All rights reserved. Using Knowledge to Understand— Comprehension Objective Subjective Miscomprehension Effects of: - MAO - Cultural system Improving objective comprehension

19. 4 | 19 Copyright © Cengage Learning. All rights reserved. Comprehension and Product Warnings

20. 4 | 20 Copyright © Cengage Learning. All rights reserved. Consumer Inference Brand names/symbols inferences - Misleading names/labels - Inappropriate/similar names Product features/packaging - Product attributes - Country of origin - Package design - Color

21. 4 | 21 Copyright © Cengage Learning. All rights reserved. Consumer Inference (cont’d) Price Retail atmospherics/display Advertising/selling Pictures Language Ethical issues

22. 4 | 22 Copyright © Cengage Learning. All rights reserved. Atmospherics Influence (Exhibit 4.13)

23. 4 | 23 Copyright © Cengage Learning. All rights reserved. Language Inference Juxtaposed imperatives Implied superiority Incomplete comparisons Multiple comparisons

24. 4 | 24 Copyright © Cengage Learning. All rights reserved. Ad Stimuli Compared