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Product Knowledge and Involvement
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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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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.
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Levels of Product Knowledge
Product Class Product Form Brand Model/Feature Coffee Ground Instant Folgers Maxwell House 1-pound can 8-ounce jar 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
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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 Pens Ballpoint Felt tip Bic Pilot $0.79 model, regular tip $0.99 model, extra-fine tip
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PRODUCT LIFE CYCLE STAGES OF THE DECISIONS PROCESS FOR INSTANT COFFEE
1 8 - 1 6 - 1 4 - 1 2 - MILLIONS OF POUNDS 1 - 8 - 6 - 4 - 2 - | | | | | | | | | | | 1 9 4 8 1 9 5 1 9 5 2 1 9 5 4 1 9 5 6 1 9 5 8 1 9 6 1 9 6 2 1 9 6 4 1 9 6 6 1 9 6 8
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Product Life Cycle Characteristics
Introduction Growth Maturity Decline Sales Low Fast Slow Decline Growth Growth Profits Cash Flow Customer Description Number of Competitors
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Product Life Cycle Characteristics
Introduction Growth Maturity Decline Strategic Focus Marketing Expenditures Marketing Emphasis Distribution Intensity Price Product
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Types of Product Knowledge
1. Bundle of Attributes - Tangible (concrete) or intangible (abstract) characteristics of the product Nike running shoes Arch support Tread design $89.95 Lacing pattern
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Types of Product Knowledge
2. Bundle of Benefits - Consequences or outcomes when purchasing and using products & services (Functional, Psychosocial) Nike running shoes Long-wearing Stabilize heel Run faster
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Types of Perceived Risk
Benefit risks: 1. Functional 2. Physical 3. Financial 4. Social 5. Psychological
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Types of Product Knowledge
3. Value Satisfaction - Cognitive representations of important broad life goals that consumers are trying to achieve Be physically fit Have good health Live a long life Nike running shoes
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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.
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Functional Consequences Psychosocial Consequences
Means-End Chains of Product Knowledge Attributes Functional Consequences Less Psychosocial Consequences Level of Abstraction Values More
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Means-End Chain Example: Gillette Sensor Razor
CONSEQUENCES FUNCTIONAL PSYCHOSOCIAL ATTRIBUTES VALUES Spring suspension for twin blades Be well groomed Be attractive Close shave Relaxed Not stressed Lubricating strip Smooth, soft shave Be comfortable
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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
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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 3. Pleasure value of the product category 4, 5, 6, 7 4. Sign value of self identify 11, 12, 13, 15, 16 8, 9, 10
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Involvement Profiles of French Consumers
(100 = average) Negative Pleasure Sign Consequences Mispurchase Value Value Detergents Dresses TV Sets Vacuum Cleaners Champagne Yogurt Facial Soap
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Model of Consumer Product Involvement
Self-concept -- basic values, goals, needs Personality traits Expertise Consumer characteristics Time commitment Price Symbolic meanings Potential for poor performance Product characteristics Purchase situation Time pressure Social environment Physical environment Environmental characteristics
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Consumer characteristics
Model of Consumer Product Involvement Consumer characteristics Intrinsic Self Relevance Involvement Interpretation & Integration Processes Product characteristics Situational Self Relevance Environmental characteristics
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Factors that Influence Involvement
Lower Involvement Higher Involvement (Toothpaste) (Automobile) Symbolic meanings Few Many regarding self: Social visibility of product Price: Potential harm to self and others Potential for poor performance: Time commitment to the purchase:
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