Product Knowledge and Involvement

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Product Knowledge and Involvement
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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

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Hierarchy of Product Competition (cont)

• Form Competition Category of 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.

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Levels of Product Knowledge
Product Class
Product Form
Brand
Model/Feature

• 1-pound can
• 8-ounce jar

• Folgers
• Maxwell House

• Ground
• Instant

Coffee
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

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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

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PRODUCT LIFE CYCLE STAGES OF THE DECISIONS
PROCESS FOR INSTANT COFFEE




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8
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6
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MILLIONS OF POUNDS
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8
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1
9
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1
9
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8

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2

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Product Life Cycle Characteristics
Introduction Growth Maturity Decline Sales Low Fa
st Slow Decline Growth Growth
Profits
Cash Flow
Customer Description
Number of Competitors
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Product Life Cycle Characteristics
Introduction Growth Maturity Decline
Strategic Focus
Marketing Expenditures
Marketing Emphasis
Distribution Intensity
Price
Product
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Types of Product Knowledge
1. Bundle of Attributes - Tangible (concrete) or
intangible (abstract) characteristics of the
product
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Types of Product Knowledge
2. Bundle of Benefits - Consequences or outcomes
when purchasing and using products services
(Functional, Psychosocial)
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Types of Perceived Risk
Benefit risks
1. Functional
2. Physical
3. Financial
4. Social
5. Psychological
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Types of Product Knowledge
3. Value Satisfaction - Cognitive representations
of important broad life goals that consumers are
trying to achieve
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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.
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Means-End Chains of Product Knowledge
Attributes
Less
Level of Abstraction
More
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Means-End Chain Example Gillette Sensor Razor
CONSEQUENCES FUNCTIONAL PSYCHOSOCIAL
ATTRIBUTES
VALUES
Spring suspension for twin blades
Lubricating strip
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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
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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
4, 5, 6, 7
3. Pleasure value of the product category
4. Sign value of self identify
11, 12, 13, 15, 16
8, 9, 10
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Involvement Profiles of French Consumers (100
average)
Negative Pleasure Sign Consequences Mispurchas
e Value Value
Detergents 79 82 56 63 Dresses 121 112 147 181
TV Sets 112 100 122 95 Vacuum Cleaners 110 112 70
78 Champagne 109 120 125 125 Yogurt 86 83 106 78 F
acial Soap 82 90 114 118
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Model of Consumer Product Involvement
Consumer characteristics
Product characteristics
Environmental characteristics
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Model of Consumer Product Involvement
Consumer characteristics
Product characteristics
Environmental characteristics
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Factors that Influence Involvement
Lower Involvement Higher Involvement (Toothpast
e) (Automobile)