1. Knowledge and Categorization Consumer Behavior Fall 2009

2. ABILITY MOTIVATION OPPORTUNITY EXPOSURE ATTENTION PERCEPTION ATTITUDE FORMATION & CHANGE CATEGORIZATION/ COMPREHENSION MEMORY & RETRIEVAL Incidental Information DECISIONDECISION

3. Categorization Occurs when consumers use their prior knowledge to label, identify, and classify something new Occurs when consumers use their prior knowledge to label, identify, and classify something new Once we have categorized Once we have categorized an object, we know what an object, we know what it is, what it is like, and it is, what it is like, and what it is similar to what it is similar to

4. Why do we categorize? Too much information Too much information Helps us learn Helps us learn We like to do it We like to do it We’re good at it! We’re good at it! Not interested in everything, but we want to have an idea Not interested in everything, but we want to have an idea

5. How do we categorize? Taxonomic Taxonomic  Similar objects in same category  Objects in categories have same features Lots of sharing within categories Lots of sharing within categories Little sharing across categories Little sharing across categories  3 Types Superordinate Superordinate Basic Basic Subordinate Subordinate

6. Categorical Structure: Illustration CokePepsiDPSpriteFrescaA&W Beverages JuicesAlcoholic DietRegularCaffeine Free Caffeine Free Diet Cherry Sodas Vanilla Diet CokeDiet Vanilla CokeDiet Cherry Coke Water

7. What influences our categories? How we learn it – sorting study How we learn it – sorting study  Kids categorize by material  Adults categorize by usage What is important to us What is important to us  If on diet, categorize drinks by diet What we are told What we are told Culture Culture Expertise Expertise

8. How do you measure categories? Ask consumers Ask consumers Sorting tasks Sorting tasks  Cards with brand names  Pictures of products  MDS Drawing of average user Drawing of average user Brand personality descriptions Brand personality descriptions

9. Sincerity Down to earth Honest Wholesome Cheerful BP Excitement Exciting Spirited Imaginative Up-to-date Competence Reliable Hard Working Intelligent Confident Successful Sophistication Upper Class Glamorous Good Looking Charming Ruggedness Outdoorsy Masculine Tough Aaker’s 5 Dimensions of Brand Personality

10. 5 Dimensions of Brand Personality Sincerity Sincerity  Hallmark, Kodak, and even Coke. Excitement Excitement  Pepsi Competence Competence  Hewlett-Packard and the Wall Street Journal Sophistication Sophistication  BMW or Mercedes Lexus Ruggedness Ruggedness  Nike, Marlboro

11. Let’s play OUTBURST!

12. Things that fly Time Time Kites Kites Birds Birds Bats Bats Insects Insects Airplanes Airplanes Helicopters Helicopters Flying Squirrels Flying Squirrels Paper airplanes Paper airplanes Rockets – spaceships Rockets – spaceships Gliders Gliders Hot Air Balloon Hot Air Balloon

13. Cosmetics Brands MAC MAC Maybelline Maybelline Cover Girl Cover Girl L’Oreal L’Oreal Lancôme Lancôme Estee Lauder Estee Lauder Arbonne Arbonne Clinique Clinique Aveda Aveda Avon Avon Mary Kay Mary Kay Merle Norman Merle Norman Origins Origins

14. Level of Expertise Experts – people whose Experts – people whose prior knowledge is well prior knowledge is well developed, in part because they have had a lot of experience and familiarity with an object or a task developed, in part because they have had a lot of experience and familiarity with an object or a task Differ from novices in several ways Differ from novices in several ways  Category structure is more developed  Have more categories, more associations and a better understanding  Have more subordinate-level categories

15. Everything you wanted to know about a category and more…… Graded members Graded members  Some members represent category better than others Prototype Prototype  Best example of a category Most easily recalled Most easily recalled Standard of comparison for category Standard of comparison for category

16. So, what did we learn from playing Outburst? Categories have graded structure Categories have graded structure Prototype = best example of a category Prototype = best example of a category Novices and experts have different category structures Novices and experts have different category structures

17. Another type of category…. Goal-Derived (or Ad Hoc) Goal-Derived (or Ad Hoc)  Contain things we perceive as relevant to a goal  We use rules/experience to create these  Examples: Things to do on a Friday night Things to do on a Friday night Things you eat on diet Things you eat on diet

18. $25,000 Pyramid One person will give clues, the others will guess the category One person will give clues, the others will guess the category Example: If category = “things you’d take on a camping trip”, clue giver might say: Example: If category = “things you’d take on a camping trip”, clue giver might say:  Sleeping bag  Bug spray  Flashlight  Tent  Marshmallows

19. Rules for Clue Givers The following are not allowed: The following are not allowed:  Using hand gestures  Saying a key part of the answer (e.g. "a building" for "Things You Build")  Using synonyms (e.g. clueing "Things That Are Attractive" with "a beautiful woman")  Listing items that do not fit the category at all (e.g. "Benjamin Franklin" for U.S. Presidents)

20. Guessers, shut your eyes… Round #1 - Things in a medicine cabinet Round #1 - Things in a medicine cabinet Round #2 - Excuses for not doing homework Round #2 - Excuses for not doing homework Round # 4 (if time) – Things a dentist would say Round # 4 (if time) – Things a dentist would say Conclusion: categories have graded structure and they are malleable too, which is good for marketers!!!

21. Marketing Implications: First Mover Advantage First Mover Advantage  Allows you to be the prototype  Easier recall increases sales Consideration Sets Consideration Sets  Why is this important? Memory Memory Point of purchase Point of purchase Brand Awareness Brand Awareness

22. Marketing Implications: Positioning Positioning  Position close to prototype – “me too” brands  Position away from prototype – 7-Up  Position relevant to goal – Special K Repositioning Repositioning  Baking soda (deodorant, refrigerator freshener)

23. Takeaway… Consumers’ knowledge structures impact perceptions of products and services