1. Chapter 16
Consumer Behavior and
Product Strategy

2. 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

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

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

5. 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

6. 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

7. 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.

8. The Adoption curve: Consumer Attributes
Innovators Early Early Late Laggards adopters adopters adopters % % % % %
0% 100%
% Adoption rate
Time

9. 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?

10. 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?