1. COPYRIGHT © 2005 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license.

2. Roger D. Blackwell Paul W. Miniard James F. Engel Consumer Behavior Requests for permission to make copies of any part of the work should be mailed to the following address: Permissions Department, Thomson Business and Economics 5109 Natorp Boulevard Mason, OH 45040 800–423–0563

3. COPYRIGHT © 2005 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Consumer Knowledge CHAPTER 9 COPYRIGHT © 2005 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license.

4. Importance of Consumer Knowledge

5. COPYRIGHT © 2005 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. What we know or don’t know strongly influences our decision- making processes It affects how decisions are made It may determine the final decision itself Importance of Consumer Knowledge

6. COPYRIGHT © 2005 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Blackwell, Miniard, and Engel, Consumer Behavior, Ninth Edition, Copyright© 2001 by Harcourt, Inc. All rights reserved. Consumer Knowledge Affects Product Demand

7. COPYRIGHT © 2005 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Knowledge about a brand’s associations (linkages in memory between the brand and other concepts) can affect consumer behavior in many ways Importance of Consumer Knowledge

8. COPYRIGHT © 2005 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Blackwell, Miniard, and Engel, Consumer Behavior, Ninth Edition, Copyright© 2001 by Harcourt, Inc. All rights reserved. Different Brand Associations Have Different Effects on Consumers Source: A. Belen del Rio, Rodolfo Vacquez, and Victor Iglesias, “The Effects of Brand Associations on Consumer Response,” Journal of Consumer Marketing, 18 (2001), 410–425.

9. COPYRIGHT © 2005 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Knowledge shapes inferences about unknown product attributes using known product attributes Importance of Consumer Knowledge

10. COPYRIGHT © 2005 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Knowledge about competitors’ prices can determine consumer acceptance of a company’s price Importance of Consumer Knowledge

11. COPYRIGHT © 2005 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Knowledge can influence consumer response to salespeople Importance of Consumer Knowledge

12. COPYRIGHT © 2005 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Types of Consumer Knowledge

13. COPYRIGHT © 2005 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Product Knowledge Purchase Knowledge Consumption and Usage Knowledge Persuasion Knowledge Self-Knowledge Types of Consumer Knowledge

14. COPYRIGHT © 2005 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Types of Consumer Knowledge Product Knowledge

15. COPYRIGHT © 2005 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Product Knowledge Represents information stored in consumers’ memory about a general product category

16. COPYRIGHT © 2005 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Represents information stored in consumers’ memory about products Can be divided into product category knowledge (i.e., knowledge about a general product category) and brand knowledge (i.e., knowledge about a brand in the product category) Product Knowledge

17. COPYRIGHT © 2005 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Product Category Knowledge Product novices possess very simply levels of product category knowledge Product experts possess vast amounts of product category knowledge Product Knowledge

18. COPYRIGHT © 2005 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Brand Knowledge Whether the consumer is aware of the brand or not is the most fundamental aspect of brand knowledge Product Knowledge

19. COPYRIGHT © 2005 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Creating knowledge of the brand’s existence is a challenge facing: New products in the current market Product Knowledge

20. COPYRIGHT © 2005 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Blackwell, Miniard, and Engel, Consumer Behavior, Ninth Edition, Copyright© 2001 by Harcourt, Inc. All rights reserved. Americans’ Awareness of New Products in 2004

21. COPYRIGHT © 2005 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Creating knowledge of the brand’s existence is a challenge facing: New products in the current market Established brands and companies in the current market Product Knowledge

22. COPYRIGHT © 2005 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Creating knowledge of the brand’s existence is a challenge facing: New products in the current market Established brands and companies in the current market Established brands and companies in new markets Product Knowledge

23. COPYRIGHT © 2005 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Assessing Awareness Product Knowledge

24. COPYRIGHT © 2005 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Assessing Awareness Recall: which brands can be retrieved from memory Top-of-the-mind awareness: the particular brand that is remembered first Product Knowledge

25. COPYRIGHT © 2005 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Assessing Awareness Recall: which brands can be retrieved from memory Top-of-the-mind awareness: the particular brand that is remembered first Recognition: identify familiar brands from a list Product Knowledge

26. COPYRIGHT © 2005 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Assessing Awareness Choosing the best indicator of knowledge depends on whether consumers construct their consideration sets based on recall or recognition Product Knowledge

27. COPYRIGHT © 2005 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Brand image: defined by entire array of associations activated from memory when consumers think about a brand May involve product attributes and associations May also include endorsers, ad campaigns, symbols, product slogans, etc. Product Knowledge

28. COPYRIGHT © 2005 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Blackwell, Miniard, and Engel, Consumer Behavior, Ninth Edition, Copyright© 2001 by Harcourt, Inc. All rights reserved. Linking Brands to Product Slogans

29. COPYRIGHT © 2005 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Image analysis: involves examining the current set of brand associations that exist in the marketplace Identify attributes and associations that come to mind about the brand Assess strengths of associations Examine what an association represents in the consumer’s psyche Product Knowledge

30. COPYRIGHT © 2005 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Perceptual Mapping: image analysis that derives brand images from consumers’ similarity judgments Consumers judge the similarity of brands examined in the analysis Brands perceived as similar are located close together on the perceptual map Placement of the “ideal brand” may suggest new products Product Knowledge

31. COPYRIGHT © 2005 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Blackwell, Miniard, and Engel, Consumer Behavior, Ninth Edition, Copyright© 2001 by Harcourt, Inc. All rights reserved. Hypothetical Perceptual Map

32. COPYRIGHT © 2005 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Product Knowledge Purchase Knowledge Types of Consumer Knowledge

33. COPYRIGHT © 2005 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Encompasses the various pieces of information consumers possess about buying products Includes information about the product’s price, where it can be purchased, and whether it can be purchased less expensively later Purchase Knowledge

34. COPYRIGHT © 2005 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. How much does it cost? Knowledge about typical range of prices for a product helps consumer evaluate fairness of the price of a particular brand Businesses are concerned about the accuracy of consumers’ price knowledge and what consumers know about their competitors’ prices (relative price knowledge) Purchase Knowledge

35. COPYRIGHT © 2005 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. When to buy? Knowledge about when a product typically goes on sale may delay purchase May determine when new innovations are purchased—many consumers do not purchase new innovations when introduced because they believe the price will drop over time Purchase Knowledge

36. COPYRIGHT © 2005 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Where to buy? Purchase Knowledge Knowledge about where to buy a product guides purchase decisions Includes knowledge about where product is located in the store—when consumers are unfamiliar with store layout, they rely more on in-store information

37. COPYRIGHT © 2005 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Creating Knowledge about Where to Buy

38. COPYRIGHT © 2005 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Product Knowledge Purchase Knowledge Consumption & Usage Knowledge Types of Consumer Knowledge

39. COPYRIGHT © 2005 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Encompasses the information in memory about how a product can be consumed and what is required to actually use it Consumers are unlikely to buy a product when they lack information about how to use it Consumption & Usage Knowledge

40. COPYRIGHT © 2005 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Creating Usage Knowledge

41. COPYRIGHT © 2005 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Consumption & Usage Knowledge Sometimes consumer have incomplete information about different ways a product can be consumed Care must be taken in selecting new uses for an existing product so not to lower its appeal

42. COPYRIGHT © 2005 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Expanding Usage Knowledge

43. COPYRIGHT © 2005 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Product Knowledge Purchase Knowledge Consumption and Usage Knowledge Persuasion Knowledge Types of Consumer Knowledge

44. COPYRIGHT © 2005 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Information about what consumers know about the goals and tactics of those trying to persuade them Persuasion knowledge influences how consumers respond to persuasion attempts Knowledge about a particular tactic may eliminate its effectiveness Persuasion Knowledge

45. COPYRIGHT © 2005 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Product Knowledge Purchase Knowledge Consumption and Usage Knowledge Persuasion Knowledge Self-Knowledge Types of Consumer Knowledge

46. COPYRIGHT © 2005 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. A person’s understanding of one’s own mental processes Can the consumer accurately assess and report the importance of product attributes used in the decision process? Companies are better off relying on the results of statistical models than those reported by consumers Self-Knowledge

47. COPYRIGHT © 2005 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Sources of Consumer Knowledge

48. COPYRIGHT © 2005 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Sources of Consumer Knowledge Personal versus Impersonal Business versus Nonbusiness Controlled

49. COPYRIGHT © 2005 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Consumers’ Sources of Knowledge

50. COPYRIGHT © 2005 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Sources of Consumer Knowledge Business sources of knowledge are often viewed with suspicion Consumers have more faith in personal knowledge sources that are not controlled by businesses

51. COPYRIGHT © 2005 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Sources of Consumer Knowledge Differing credibility of sources Relative influence of product sources depends on the type of information conveyed

52. COPYRIGHT © 2005 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Perceptions of Media Credibility

53. COPYRIGHT © 2005 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Sources of Consumer Knowledge Experience from buying and consuming a product Direct experience increases confidence in knowledge and makes it more likely to be used in making decisions Companies may adjust their marketing strategies when targeting consumers lacking direct experience with the product

54. COPYRIGHT © 2005 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Sources of Consumer Knowledge Companies need to decide which source to use when delivering their messages Essential that the company monitor what is being transmitted to consumers about them

55. COPYRIGHT © 2005 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Monitoring Media Coverage

56. COPYRIGHT © 2005 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Benefits of Understanding Consumer Knowledge

57. COPYRIGHT © 2005 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Benefits of Understanding Consumer Knowledge Gauging Positioning Success

58. COPYRIGHT © 2005 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Benefits of Understanding Consumer Knowledge Gauging Positioning Success By examining a product’s image among target consumers, a company can determine its success in achieving the desired image among consumers?

59. COPYRIGHT © 2005 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Benefits of Understanding Consumer Knowledge Identifying Purchase Barriers

60. COPYRIGHT © 2005 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Benefits of Understanding Consumer Knowledge Identifying Purchase Barriers Can occur due to a lack of knowledge Knowledge gaps: an absence of information in memory Firms need to identify knowledge gaps which undermine product purchase Knowledge gaps may exist for new and existing products

61. COPYRIGHT © 2005 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Educating Consumers

62. COPYRIGHT © 2005 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Benefits of Understanding Consumer Knowledge Identifying Purchase Barriers Can occur due to a lack of knowledge Can occur due to inaccurate knowledge (misperceptions)

63. COPYRIGHT © 2005 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Benefits of Understanding Consumer Knowledge Misperceptions Can occur in many areas including knowledge of the brand, company, product, or product’s price Fixing misperceptions requires changing how the product is perceived

64. COPYRIGHT © 2005 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Benefits of Understanding Consumer Knowledge Discovering New Uses

65. COPYRIGHT © 2005 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Benefits of Understanding Consumer Knowledge Discovering New Uses Consumers often develop new ways of using a product

66. COPYRIGHT © 2005 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. New Product Uses

67. COPYRIGHT © 2005 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Benefits of Understanding Consumer Knowledge Discovering New Uses Consumers often develop new ways of using a product Companies may find that these new uses can be promoted as a means of broadening a product’s appeal

68. COPYRIGHT © 2005 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Benefits of Understanding Consumer Knowledge Gauging the Severity of Competitive Threats

69. COPYRIGHT © 2005 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Benefits of Understanding Consumer Knowledge Gauging the Severity of Competitive Threats How much do consumers know about competitive products? Understanding what consumers know about competitive brands can guide marketing activities with respect to those competitive brands

70. COPYRIGHT © 2005 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Benefits of Understanding Consumer Knowledge Enhancing the Effectiveness of Customer Recruitment Activities

71. COPYRIGHT © 2005 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Benefits of Understanding Consumer Knowledge Enhancing the Effectiveness of Customer Recruitment Activities What product changes are needed to attract competitors’ customers? How might these changes best be accomplished? Advertising, personal sales, or public relations? Should sales messages focus on technical information or easy to understand product attributes?

72. COPYRIGHT © 2005 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license. Safeguarding and improving consumer welfare is the primary concern Policies and legislation aimed at protecting the uninformed consumer Includes areas such as appropriate disclosure of information and educating consumers Implications for Public Policy