1. Dr. Bea Bourne 1

2. 2 If you have any trouble in seminar, please do call Tech Support at: 1-866-522-7747 They can assist if you get “bumped” from the seminar room or experience other difficulties.

3.  This seminar will examine Consumer Imagery. Please be prepared to discuss consumers' perceived images of products, brands, services, prices, product quality, retail stores, and manufactures.  Questions 3

4.  Unit 4 focuses on personality and perception. Both are important factors when it comes to consumer behavior and how marketers can influence purchasing decisions.  This unit also covers positioning and how consumers perceive products and brands. 4

5. 5 Read Chapters 5 & 6 Chapter 5 introduces the nature of personality. As you read, you should pay particular attention to the following ideas: Freudian theory Neo-Freudian theory Trait theory Chapter 6 introduces the concept of consumer perception. As you read, you should pay particular attention to the following ideas: Product positioning Product repositioning Positioning of services Perceived value Perceived quality

6.  Unit 3 focused on market segmentation and consumer motivation.  It is important to understand how and why market segmentation is used, as well as what motivates consumers when making purchasing decisions.  Consumers' needs are the basis for marketing and this unit provides insight into these needs. 6

7. 7 After completing this unit, you should be able to: Explain the role of personality in consumer behavior Define consumer ethnocentrism Analyze the elements of brand personality Define the various personality theories Analyze the four forms of self-image plus two other versions of self-image Define perception Explain the importance of consumer imagery

8. 8 As learned, consumers try to preserve or develop their self-image by buying goods they believe agree with their perceived image and keep away from those products that are not. So what does this mean? Why is this important to a marketer? It helps target our market more effectively. If we know what those self images are we are able to focus our marketing strategies to capitalize on that self image. So how do we do this? Through positioning, price, quality and image. Self-image

9. 9 Product position is the positioning of a product or brand in the mind of the consumer. It's those factors that are of value by consumers when making decisions on which products to purchase. What came to your mind when you think about the type of car you would like to purchase? Now why did you think of that particular car? The reason those products came to your mind is because of those product’s positioning. For some reason those products stuck with you, and that is because of the marketing strategies behind the products. Product positioning is important for the long-term success of your company because it will make your product memorable and also make your product desired by your targeted market segments. Product position

10.  Successful product position has characteristics that are both differentiating and important to consumers.  Every product has some sort of position whether intended or not.  Positions are based upon consumer perceptions, which may or may not reflect reality.  A position is effectively built by communicating a consistent message to consumers about the product and where it fits into the market through advertising, brand name, and packaging.  The first step in developing your product positioning is understanding what your value proposition is. 10

11. What is a value proposition? 11

12. 12  In order to be effective in marketing and communications strategies, marketers need to be able communicate the value of products or services to the consumer.  A value proposition is literally what the customer gets when he or she purchases product benefits.  Marketers should think about how the product or service will improve the customer's life.  Be unique and highlight the ways in which the product is superior to other alternatives.

13.  FedEx’s value proposition, "When your package absolutely, positively has to get there overnight."  With this statement FedEx is identifying with its customers by guaranteeing fast delivery, which is what we all have come to expect with FedEx overnight services.  What are some other value propositions you are familiar with?  What are they trying to communicate? 13

14.  As learned in Chapter 6, how a consumer perceives a price—as high, as low, as fair—has a strong influence on both purchase intentions and purchase satisfaction.  Pricing a product appropriately can literally make or break a business.  It’s critical that before pricing a product or service marketers should be diligent about understanding how similar products or services are priced in the market.  This will also be a reference point for a customer.  No one is happy knowing he or she paid twice as much for a product than their neighbor.  Everyone wants to feel like they got a good deal. 14

15.  There are three types of pricing strategies based on the customer’s perception of the value provided by the purchase satisfaction-based pricing, relationship pricing, and efficiency pricing. 15

16.  The primary goal of satisfaction-based pricing is to reduce the amount of risk perceived by the consumer.  This is implemented through service guarantees  benefit driven pricing where customers are only charged for services used as apposed to a membership fee and flat-rate pricing where a customer pays a fixed price for a product. 16

17. 17 What is relationship pricing?

18. 18  The primary objective of relationship pricing is to develop relationships with the targeted customers.  Long-term contracts and price bundling are examples of this.

19.  Efficiency pricing is about appealing to the economically-minded consumer.  This pricing strategy is about delivering the best and most cost-effective service for the price.  Can anyone think of some companies or products that use efficiency pricing? 19

20.  Pricing should be easy for customers to understand...  Represent value...  Encourage customer retention...  Reduce uncertainty and...  Reinforce customer trust. 20

21. 21  Perceived Quality is what a customer senses when he or she first sees or touches a product the overall look and feel, shape, color, material, finish and texture.  Customers make faster and easier buying decisions if they perceive high value and are more confident with the image and quality of a product.

22. 22 What are some products you consider quality products? Why do you think that product is a quality product? Would you buy a cheaper alternative? What is it was exactly the same thing just made by a different manufacturer?

23. Retail stores have images of their own that serve to influence the perceived quality of products they carry and the decisions of consumers as to where to shop. These images stem from the stores design and physical environment, their pricing strategies, and product assortments. Warehouse clubs like Sam’s or Costco are generally perceived to have the same quality for groceries, but not for fashion. Or outlet stores are perceived to have lower quality than the full price store. What about dollar stores? What do you think the perceived image is? 23 Perceived Image of Retail Stores

24. 24  All of this needs to be considered when deciding how and where to market products.

25. 25

26. 26 Complete the Project: A Movie or One LONG Commercial? Complete Questions 1 and 2 for Case Two: A Movie or One LONG Commercial? for Chapter 6, which starts on page C-14 in the back of your Consumer Behavior textbook. As with all material you submit to the Instructor, check for correct spelling, grammar, punctuation, mechanics, and usage. Please refer to the Online Communications Guidelines for Paper Submission Standards. Directions for Submitting Your Project Before you submit your project, you should save your work on your computer in a location and with a name that you will remember. Make sure your project is in the appropriate format (Word, Excel, PowerPoint, or other), then, when you are ready, you may submit on the Dropbox page. Assignments

27.  I appreciate your time and attention during our 1 hour seminar today. If you have questions, feel free to contact me: BBourne@kaplan.edu and I’ll be happy to help! BBourne@kaplan.edu  See you in Class! 27