1. Consumer Behavior and Product Strategy
Chapter 16
Consumer Behavior and Product Strategy

2. Product Affect and Cognition
Satisfaction/Dissatisfaction
Consumer satisfaction is a critical concept in marketing thought and consumer research
The most current formulation to studying satisfaction is the expectancy disconfirmation with performance approach
The degree to which a product’s performance exceeds the consumers’ expectations

3. Product Affect and Cognition cont.

4. Product Affect and Cognition cont.
Prepurchase expectations
Postpurchase expectations
Disconfirmation
Positive
Negative
Dissatisfaction
Neutral
Balancing paradigm alternative

5. Product Behavior Product contact Brand loyalty/variety seeking
Types of occurrences
Brand loyalty/variety seeking
Four categories of consumer purchasing patterns based on the degree of cognitive commitment and number of brands purchased in a particular period

6. Product Behavior cont.

7. Product Behavior cont.
Brand loyalty is an intrinsic commitment to repeatedly purchase a particular brand
Distinguished from repeat purchase behavior
Variety seeking is a cognitive commitment to purchase different brands because of such things as
Stimulation involved in trying different things
Curiosity
Novelty
Overcoming boredom with the same old thing

8. Product Behavior cont.
Differentiating variety seeking from derived varied behavior
The degree to which consumers are brand loyal or seek variety can be viewed as a continuum
Marketers need to be concerned with the usage rate of particular products by various target markets and consumers

9. Product Behavior cont.
Attracting brand-loyal customers is most valuable when the consumers are also heavy users

10. The Product Environment
Product-related stimuli that are attended to and comprehended by consumers
Product attributes
Major stimuli that influence consumer affect, cognition, and behavior
Packaging
Should protect the product as it moves through the channel to the consumer

11. The Product Environment cont.
Should be economical and not add undue cost to the product
Should allow convenient storage and use of the product by the consumer
Can be used effectively to promote the product to the consumer
In some cases, packaging can obtain a relative advantage for a product

12. The Product Environment cont.
Package sizes
Can influence not only which brands are chosen, but also how much of a product is used on particular occasions
Package colors
Has been argued that colors have an important impact on consumers’ affect, cognition, and behavior
Has been argued that colors connote meanings to consumers and can be used strategically
Reported that consumer perceptions of products may change with a change in package color

13. The Product Environment cont.
Brand identification and label information
Simplifies purchase and makes the loyalty development process possible
For some products, label information can strongly influence purchase

14. Product Strategy
In the short run, new-product strategies are designed to influence consumers to try the product
In the long run, product strategies are designed to develop brand loyalty and obtain large market shares

15. Product Strategy cont.
A critical aspect of designing product strategies involves analyzing consumer-product relationships
Characteristics of consumers
Vary in their willingness to try new products
Different types of consumers may adopt a new product at different times

16. Product Strategy cont.

17. Product Strategy cont. Five categories of adopters
Innovators
Early adopters
Early majority
Late majority
Laggards
Major focus of consumer research has been to identify the characteristics of innovators and their differences from other consumers

18. Product Strategy cont. Characteristics of products
Innovators tend to be heavy users of other products within a product class
Characteristics of products
Compatibility
Degree to which a product is consistent with consumers’ current affect, cognition, and behavior

19. Product Strategy cont. Trialability Observability Speed
Degree to which a product can be tried on a limited basis or divided into small quantities for an inexpensive trial
Observability
Degree to which products or their effects can be sensed by other consumers
Speed
How fast the benefits of the product are experienced

20. Product Strategy cont. Simplicity Competitive advantage
Degree to which a product is easy for a consumer to understand and use
Competitive advantage
Degree to which an item has a sustainable competitive advantage over other product classes, product forms, and brands

21. Product Strategy cont.
Relative advantage is a most important product characteristic not only for obtaining trial, but also for continued purchase and development of brand loyalty
In some cases, a relative advantage may be obtained through technological developments
At the brand level it is often difficult to maintain a technological relative advantage

22. Product Strategy cont. Product symbolism Marketing strategy
What the product or brand means to the consumer and what the consumer experiences in purchasing and using it
Marketing strategy
Quality
Promotion
Price
Distribution

23. Summary
Investigated some product-related affect, cognition, behavior, and environmental factors
Explored several aspect of product strategy
Product affect and cognition were discussed in terms of consumer satisfaction and dissatisfaction

24. Summary cont.
Discussed the analysis of behavior in looking at product contact and brand loyalty
Emphasized several strategies based on relationships between brand loyalty and usage rates
Product attributes and packing were among environmental factors examined
Discussed product strategy