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Product Knowledge and Involvement

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Presentation on theme: "Product Knowledge and Involvement"— Presentation transcript:

1 Product Knowledge and Involvement

2 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

3 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.

4 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

5 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

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

7 Product Life Cycle Characteristics
Introduction Growth Maturity Decline Sales Low Fast Slow Decline Growth Growth Profits Cash Flow Customer Description Number of Competitors

8 Product Life Cycle Characteristics
Introduction Growth Maturity Decline Strategic Focus Marketing Expenditures Marketing Emphasis Distribution Intensity Price Product

9 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

10 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

11 Types of Perceived Risk
Benefit risks: 1. Functional 2. Physical 3. Financial 4. Social 5. Psychological

12 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

13 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.

14 Functional Consequences Psychosocial Consequences
Means-End Chains of Product Knowledge Attributes Functional Consequences Less Psychosocial Consequences Level of Abstraction Values More

15 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

16 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

17 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

18 Involvement Profiles of French Consumers
(100 = average) Negative Pleasure Sign Consequences Mispurchase Value Value Detergents Dresses TV Sets Vacuum Cleaners Champagne Yogurt Facial Soap

19 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

20 Consumer characteristics
Model of Consumer Product Involvement Consumer characteristics Intrinsic Self Relevance Involvement Interpretation & Integration Processes Product characteristics Situational Self Relevance Environmental characteristics

21 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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