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COPYRIGHT © 2005 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license.
COPYRIGHT © 2005 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license.
COPYRIGHT © 2005 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license.
Roger D. Blackwell Paul W. Miniard James F. Engel
Consumer Behavior
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Consumer Knowledge
CHAPTER 9
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Importance of Consumer Knowledge
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What we know or don’t know strongly influences our decision-making processes
It affects how decisions are made
It may determine the finaldecision itself
Importance of Consumer Knowledge
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Blackwell, Miniard, and Engel, Consumer Behavior, Ninth Edition, Copyright© 2001 by Harcourt, Inc. All rights reserved.
Consumer Knowledge Affects Product Demand
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Knowledge about a brand’s associations (linkages in memory between the brand and other concepts) can affect consumer behavior in many ways
Importance of Consumer Knowledge
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Blackwell, Miniard, and Engel, Consumer Behavior, Ninth Edition, Copyright© 2001 by Harcourt, Inc. All rights reserved.
Different Brand Associations HaveDifferent Effects on Consumers
Source: A. Belen del Rio, Rodolfo Vacquez, and Victor Iglesias, “The Effects of Brand Associations on Consumer Response,” Journal of Consumer Marketing, 18 (2001), 410–425.
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Knowledge shapes inferences about unknown product attributes using known product attributes
Importance of Consumer Knowledge
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Knowledge about competitors’ prices can determine consumer acceptance of a company’s price
Importance of Consumer Knowledge
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Knowledge can influence consumer response to salespeople
Importance of Consumer Knowledge
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Types of Consumer Knowledge
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Product Knowledge
Purchase Knowledge
Consumption and Usage Knowledge
Persuasion Knowledge
Self-Knowledge
Types of Consumer Knowledge
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Types of Consumer Knowledge
Product Knowledge
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Product Knowledge
Represents information stored in consumers’ memory about a general product category
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Represents information stored in consumers’ memory about products
Can be divided into product category knowledge (i.e., knowledge about a general product category) and brand knowledge (i.e., knowledge about a brand in the product category)
Product Knowledge
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Product Category Knowledge
Product novices possess very simply levels of product category knowledge
Product experts possess vast amounts of product category knowledge
Product Knowledge
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Brand Knowledge
Whether the consumer is aware of the brand or not is the most fundamental aspect of brand knowledge
Product Knowledge
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Creating knowledge of the brand’s existence is a challenge facing:
New products in the current market
Product Knowledge
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Blackwell, Miniard, and Engel, Consumer Behavior, Ninth Edition, Copyright© 2001 by Harcourt, Inc. All rights reserved.
Americans’ Awareness of New Products in 2004
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Creating knowledge of the brand’s existence is a challenge facing:
New products in the current market
Established brands and companies in the current market
Product Knowledge
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Creating knowledge of the brand’s existence is a challenge facing:
New products in the current market
Established brands and companies in the current market
Established brands and companies in new markets
Product Knowledge
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Assessing Awareness
Product Knowledge
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Assessing Awareness
Recall: which brands can be retrieved from memory
Top-of-the-mind awareness: the particular brand that is remembered first
Product Knowledge
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Assessing Awareness
Recall: which brands can be retrieved from memory
Top-of-the-mind awareness: the particular brand that is remembered first
Recognition: identify familiar brands from a list
Product Knowledge
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Assessing Awareness
Choosing the best indicator of knowledge depends on whether consumers construct their consideration sets based on recall or recognition
Product Knowledge
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Brand image: defined by entire array of associations activated from memory when consumers think about a brand
May involve product attributes and associations
May also include endorsers, ad campaigns, symbols, product slogans, etc.
Product Knowledge
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Blackwell, Miniard, and Engel, Consumer Behavior, Ninth Edition, Copyright© 2001 by Harcourt, Inc. All rights reserved.
Linking Brands to Product Slogans
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Image analysis: involves examining the current set of brand associations that exist in the marketplace
Identify attributes and associations that come to mind about the brand
Assess strengths of associations
Examine what an association represents in the consumer’s psyche
Product Knowledge
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Perceptual Mapping: image analysis that derives brand images from consumers’ similarity judgments
Consumers judge the similarity of brands examined in the analysis
Brands perceived as similar are located close together on the perceptual map
Placement of the “ideal brand” may suggest new products
Product Knowledge
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Blackwell, Miniard, and Engel, Consumer Behavior, Ninth Edition, Copyright© 2001 by Harcourt, Inc. All rights reserved.
Hypothetical Perceptual Map
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Product Knowledge
Purchase Knowledge
Types of Consumer Knowledge
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Encompasses the various pieces of information consumers possess about buying products
Includes information about the product’s price, where it can be purchased, and whether it can be purchased less expensively later
Purchase Knowledge
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How much does it cost?
Knowledge about typical range of prices for a product helps consumer evaluate fairness of the price of a particular brand
Businesses are concerned about the accuracy of consumers’ price knowledge and what consumers know about their competitors’ prices (relative price knowledge)
Purchase Knowledge
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When to buy?
Knowledge about when a product typically goes on sale may delay purchase
May determine when new innovations are purchased—many consumers do not purchase new innovations when introduced because they believe the price will drop over time
Purchase Knowledge
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Where to buy?
Purchase Knowledge
Knowledge about where to buy aproduct guides purchase decisions
Includes knowledge about where product is located in the store—when consumers are unfamiliar with store layout, they rely more on in-store information
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Creating Knowledge about Where to Buy
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Product Knowledge
Purchase Knowledge
Consumption & Usage Knowledge
Types of Consumer Knowledge
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Encompasses the information in memory about how a product can be consumed and what is required to actually use it
Consumers are unlikely to buy a product when they lack information about how to use it
Consumption & Usage Knowledge
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Creating Usage Knowledge
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Consumption & Usage Knowledge
Sometimes consumer have incomplete information about different ways a product can be consumed
Care must be taken in selecting new uses for an existing product so not to lower its appeal
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Expanding Usage Knowledge
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Product Knowledge
Purchase Knowledge
Consumption and Usage Knowledge
Persuasion Knowledge
Types of Consumer Knowledge
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Information about what consumers know about the goals and tactics of those trying to persuade them
Persuasion knowledge influences how consumers respond to persuasion attempts
Knowledge about a particular tactic may eliminate its effectiveness
Persuasion Knowledge
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Product Knowledge
Purchase Knowledge
Consumption and Usage Knowledge
Persuasion Knowledge
Self-Knowledge
Types of Consumer Knowledge
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A person’s understanding of one’s own mental processes
Can the consumer accurately assess and report the importance of product attributes used in the decision process?
Companies are better off relying on the results of statistical models than those reported by consumers
Self-Knowledge
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Sources of Consumer Knowledge
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Sources of Consumer Knowledge
Personal versus Impersonal
Business versus Nonbusiness Controlled
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Consumers’ Sources of Knowledge
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Sources of Consumer Knowledge
Business sources of knowledge are often viewed with suspicion
Consumers have more faith in personal knowledge sources that are not controlled by businesses
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Sources of Consumer Knowledge
Differing credibility of sources
Relative influence of product sources depends on the type of information conveyed
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Perceptions of Media Credibility
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Sources of Consumer Knowledge
Experience from buying and consuming a product
Direct experience increases confidence in knowledge and makes it more likely to be used in making decisions
Companies may adjust their marketing strategies when targeting consumers lacking direct experience with the product
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Sources of Consumer Knowledge
Companies need to decide which source to use when delivering their messages
Essential that the company monitor what is being transmitted to consumers about them
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Monitoring Media Coverage
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Benefits of Understanding Consumer Knowledge
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Benefits of Understanding Consumer Knowledge
Gauging Positioning Success
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Benefits of Understanding Consumer Knowledge
Gauging Positioning SuccessBy examining a product’s image among target consumers, a company can determine its success in achieving the desired image among consumers?
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Benefits of Understanding Consumer Knowledge
Identifying Purchase Barriers
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Benefits of Understanding Consumer Knowledge
Identifying Purchase BarriersCan occur due to a lack of knowledge
Knowledge gaps: an absence of information in memory
Firms need to identify knowledge gaps which undermine product purchase
Knowledge gaps may exist for new and existing products
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Educating Consumers
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Benefits of Understanding Consumer Knowledge
Identifying Purchase BarriersCan occur due to a lack of knowledge
Can occur due to inaccurate knowledge (misperceptions)
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Benefits of Understanding Consumer Knowledge
MisperceptionsCan occur in many areas including knowledge of the brand, company, product, or product’s price
Fixing misperceptions requires changing how the product is perceived
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Benefits of Understanding Consumer Knowledge
Discovering New Uses
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Benefits of Understanding Consumer Knowledge
Discovering New UsesConsumers often develop new ways of using a product
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New Product Uses
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Benefits of Understanding Consumer Knowledge
Discovering New UsesConsumers often develop new ways of using a product
Companies may find that these new uses can be promoted as a means of broadening a product’s appeal
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Benefits of Understanding Consumer Knowledge
Gauging the Severity of Competitive Threats
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Benefits of Understanding Consumer Knowledge
Gauging the Severity of Competitive Threats
How much do consumers know about competitive products?
Understanding what consumers know about competitive brands can guide marketing activities with respect to those competitive brands
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Benefits of Understanding Consumer Knowledge
Enhancing the Effectiveness of Customer Recruitment Activities
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Benefits of Understanding Consumer Knowledge
Enhancing the Effectiveness of Customer Recruitment Activities
What product changes are needed to attract competitors’ customers?
How might these changes best be accomplished? Advertising, personal sales, or public relations?
Should sales messages focus on technical information or easy to understand product attributes?
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Safeguarding and improving consumer welfare is the primary concern
Policies and legislation aimed at protecting the uninformed consumer
Includes areas such as appropriate disclosure of information and educating consumers
Implications for Public Policy