MEANS-END THEORYMEANS-END THEORYINTRODUCTIONINTRODUCTIONPRODUCT RELATED KNOWLEDGEPRODUCT RELATED KNOWLEDGEKINDS OF ATTRIBUTESKINDS OF ATTRIBUTESRELATIONSHIP BETWEEN ATTRIBUTESRELATIONSHIP BETWEEN ATTRIBUTESCONSEQUENCES-BENEFITSCONSEQUENCES-BENEFITSPERSONAL VALUESPERSONAL VALUESIMPORTANCE TO CONSUMERIMPORTANCE TO CONSUMERIMPORTANCE TO MARKETERIMPORTANCE TO MARKETER

BASIC MEANS- END BASIC MEANS- END MODELMODEL

INTRODUCTION CONTD.INTRODUCTION CONTD.Means end theory is a theory Means end theory is a theory about customer behaviorabout customer behaviorThis theory emphasizes how This theory emphasizes how personal values influence personal values influence individual behaviorindividual behaviorPersonal values are defined as “ Personal values are defined as “ motivating, end states of motivating, end states of existence” which individuals strive existence” which individuals strive forfor

INTRODUCTION CONTD.INTRODUCTION CONTD. Gengler and Reynolds describe personal Gengler and Reynolds describe personal

values as “ internal, self relevant goal values as “ internal, self relevant goal states”states”

Therefore, each individual has their own Therefore, each individual has their own personal values which are the personal values which are the endsends that that they seek.they seek.

Means Means are the things that people use to are the things that people use to reach those endsreach those ends

In marketing, means refer to product In marketing, means refer to product attributes (characteristics of the means) attributes (characteristics of the means) and consequences-personal relevant. and consequences-personal relevant. (positive consequences are seen as (positive consequences are seen as benefits)benefits)

The ends means theory was The ends means theory was developed by Gutman (1982) and it developed by Gutman (1982) and it allows the researchers to explore allows the researchers to explore consumer choice beyond the consumer choice beyond the superficial level to understand the superficial level to understand the emotional underpinnings that drive emotional underpinnings that drive consumer’s decisions.consumer’s decisions.

Through interviews, the researchers Through interviews, the researchers guide participants through levels of guide participants through levels of abstraction, moving from the abstraction, moving from the superficial factors that guide their superficial factors that guide their choice, to the consequences that they choice, to the consequences that they perceive will arise( consumers seek to perceive will arise( consumers seek to maximize positive outcomes) from their maximize positive outcomes) from their choice, and finally to the personal choice, and finally to the personal values they are attempting to reinforce.values they are attempting to reinforce.

From each attribute that an From each attribute that an interviewee describes as important, a interviewee describes as important, a means-end chain is created to means-end chain is created to explore the interconnections explore the interconnections between the attributes, the between the attributes, the anticipated consequences that arise anticipated consequences that arise from the attributes, and finally the from the attributes, and finally the personal value being reinforcedpersonal value being reinforced

According to the theory, individuals According to the theory, individuals base decisions on factors that are base decisions on factors that are likely to lead to desired likely to lead to desired consequences (Gutman, 1982)consequences (Gutman, 1982)

Consumers will make a selection that Consumers will make a selection that reinforces what they have deemed reinforces what they have deemed valuable (Klenosky, Templin and valuable (Klenosky, Templin and Troutman, 2001).Troutman, 2001).

What the consumer deems as What the consumer deems as valuable is what is the end valuable is what is the end

PRODUCT RELETED KNOWLEDGEPRODUCT RELETED KNOWLEDGE

Consumers have 3 levels of product Consumers have 3 levels of product related knowledgerelated knowledge

Product attributesProduct attributesThe consequences or outcomes of The consequences or outcomes of

using a productusing a productThe broad goals or values that may The broad goals or values that may

be satisfied by use of the productbe satisfied by use of the productThis is what forms the hierarchy This is what forms the hierarchy

chain of association.chain of association.

ATTRIBUTE CONSEQUENCES VALUES

FLUORIDE PREVENTS CAVITY

HEALTHYCHILD

GOOD MOTHER

KINDS OF ATTRIBUTESKINDS OF ATTRIBUTES

SEARCH VS EXPERIENCESEARCH VS EXPERIENCE INTRINSIC ATTRIBUTESINTRINSIC ATTRIBUTESEXTRINSIC ATTRIBUTESEXTRINSIC ATTRIBUTESPERFORMANCE ATTRIBUTESPERFORMANCE ATTRIBUTESABSTRACT ATTRIBUTESABSTRACT ATTRIBUTES

SEARCH VS EXPERIENCE SEARCH VS EXPERIENCE ATTRIBUTESATTRIBUTES

These are attributes of a product that These are attributes of a product that can be assessed before purchase, can be assessed before purchase, while experience attributes can only while experience attributes can only be assessed after purchase of a be assessed after purchase of a product e.g leaking diapersproduct e.g leaking diapers

INTRINSIC ATTRIBUTESINTRINSIC ATTRIBUTES

MANUFACTURING/MATERIAL ATTRIBUTESMANUFACTURING/MATERIAL ATTRIBUTES These involve the physical attributes of a product. These involve the physical attributes of a product.

We therefore have to consider the manufacturing We therefore have to consider the manufacturing process that led to the production of the product.process that led to the production of the product.

This will therefore include the materials used in This will therefore include the materials used in the production of the productthe production of the product

Various components are mixed together in the Various components are mixed together in the creation of a productcreation of a product

It therefore becomes difficult for the consumer to It therefore becomes difficult for the consumer to remove an ingredient from the mixremove an ingredient from the mix

Manufacturers also add unique ingredients which Manufacturers also add unique ingredients which will differentiate their product will differentiate their product

FORM ATTRIBUTESFORM ATTRIBUTES

This includes the size and shape of This includes the size and shape of the product. e.g. for some people the product. e.g. for some people when buying a computer, the form when buying a computer, the form attributes matter e.g. its weight, size attributes matter e.g. its weight, size of screen etc.of screen etc.

EXTRINSIC ATTRIBUTESEXTRINSIC ATTRIBUTES Attributes added by the marketer to enhance the Attributes added by the marketer to enhance the

customers product use or consumption.customers product use or consumption. BRAND ATTRIBUTTESBRAND ATTRIBUTTES This include the name of the productThis include the name of the product This distinguishes a product from other productsThis distinguishes a product from other products Brand names enable a consumer to remember Brand names enable a consumer to remember

the key attributes of the productthe key attributes of the product Customers tend to buy products with the same Customers tend to buy products with the same

products. Therefore if they like the attributes of products. Therefore if they like the attributes of the product they have used, they may end up the product they have used, they may end up buying other products of the same brandbuying other products of the same brand

Company name, logo are all examples of brand Company name, logo are all examples of brand attributesattributes

PACKAGING ATTRIBUTESPACKAGING ATTRIBUTES

This will include the materials used This will include the materials used for packaging, the shape of the for packaging, the shape of the package, in toothpaste it will also package, in toothpaste it will also include the twist off cap or the flip include the twist off cap or the flip top cap, labels containing brand top cap, labels containing brand name etc.name etc.

PRICE ATTRIBUTESPRICE ATTRIBUTES

The consumers behavior is affected The consumers behavior is affected by the price of the product and also by the price of the product and also the price of the warranties, product the price of the warranties, product enhancements, shipping, installation, enhancements, shipping, installation, replacement parts etcreplacement parts etc

Thus when talking of price it also Thus when talking of price it also includes the price of the associated includes the price of the associated services and parts services and parts

AUGUMENTED PRODUCT AUGUMENTED PRODUCT ATTRIBUTESATTRIBUTES

According to Ted Levitt (Harvard) According to Ted Levitt (Harvard) Customers usually expect certain services Customers usually expect certain services to accompany the purchase of a productto accompany the purchase of a product

These include product delivery, These include product delivery, installations services, training, customer installations services, training, customer assistance, maintenance and repairassistance, maintenance and repair

These are the services that a These are the services that a manufacturer or distributor provides to manufacturer or distributor provides to enhance a customer’s product use of enhance a customer’s product use of consumption.consumption.

PERFORMANCE PERFORMANCE ATTRIBUTES ATTRIBUTES

This applies to the way a product This applies to the way a product performs the function it is meant for. performs the function it is meant for.

For example if it is a diaper, the For example if it is a diaper, the customer will be looking at whether it customer will be looking at whether it leaks, or whether it adequately keeps leaks, or whether it adequately keeps the wetness away from the skin of the the wetness away from the skin of the infantinfant

Both the intrinsic and extrinsic Both the intrinsic and extrinsic attributes determine the performance attributes determine the performance attributes of the product.attributes of the product.

ABSTRACT ATTRIBUTESABSTRACT ATTRIBUTES ABSTRACT (multidimensional attributes)ABSTRACT (multidimensional attributes) Quality, durability, luxuriousness pf a Quality, durability, luxuriousness pf a

product are referred to as abstract product are referred to as abstract attributesattributes

They are subject to the consumers They are subject to the consumers judgment and are as a result of the judgment and are as a result of the summarizing of both the intrinsic and summarizing of both the intrinsic and extrinsic attributes.extrinsic attributes.

For example when we talk of “light taste” For example when we talk of “light taste” on a beverage, this is a multidimensional on a beverage, this is a multidimensional attribute because it reflects a number of attribute because it reflects a number of unidimensional attributes e.g. sugar unidimensional attributes e.g. sugar content, alcohol content, and colorcontent, alcohol content, and color

ABSTRACT ATTRIBUTES cont.ABSTRACT ATTRIBUTES cont.

Abstract attributes condense the Abstract attributes condense the information contained in several attributes information contained in several attributes into a single attribute.into a single attribute.

There are 3 types of abstract attributesThere are 3 types of abstract attributes Weighted multi attribute evaluation-Weighted multi attribute evaluation-

performance, features, reliability, performance, features, reliability, durabilitydurability

User imagery-people already have an ideaUser imagery-people already have an idea Use situation attributes-when should the Use situation attributes-when should the

product/service be used.product/service be used.

RELATIONSHIP BETWEEN RELATIONSHIP BETWEEN ATTRIBUTESATTRIBUTES

Abstractattributes

Performance attributes

Intrinsic attributes Extrinsic

attributes

CONSEQUENCES (BENEFITS)CONSEQUENCES (BENEFITS)

Customers buy products that have Customers buy products that have attributes but what is important to attributes but what is important to them is the benefits they get from them is the benefits they get from the productthe product

No single product can give the No single product can give the consumer all the benefits they desireconsumer all the benefits they desire

Therefore the consumer must decide Therefore the consumer must decide which is the most important benefit which is the most important benefit when they are purchasing a productwhen they are purchasing a product

BENEFITS contd.BENEFITS contd.

FUNCTIONAL-FUNCTIONAL- customer can use the customer can use the product to do something that is perceived product to do something that is perceived as necessary or desirable.as necessary or desirable.

EXPERIENTIALEXPERIENTIAL -involves physical -involves physical sensation and emotional feelings that a sensation and emotional feelings that a customer feels when they use a productcustomer feels when they use a product

FINANCIALFINANCIAL –when a customers spends –when a customers spends money on a product, then they have less money on a product, then they have less money to spend on other products. Some money to spend on other products. Some products reduce customer expenditure e.g. products reduce customer expenditure e.g. buying crest to prevent spending on dentist.buying crest to prevent spending on dentist.

PSYCHOSOCIALPSYCHOSOCIAL -this is how consuming a -this is how consuming a product makes the consumer feel about product makes the consumer feel about themselves. Consumption behavior can themselves. Consumption behavior can move consumer from their current self move consumer from their current self image closer to their ideal self image.image closer to their ideal self image.

END STATES OF EXISTENCE END STATES OF EXISTENCE (PERSONAL VALUES)(PERSONAL VALUES)

The customers decisions on the benefits The customers decisions on the benefits depends on their personal valuesdepends on their personal values

These are defined as” the underlying These are defined as” the underlying beliefs that are shared by the members of beliefs that are shared by the members of a society and indicate how they should act, a society and indicate how they should act, think and feel”think and feel”

The consumer therefore believes that when The consumer therefore believes that when they purchase products that comply with they purchase products that comply with social norms then they will be accepted by social norms then they will be accepted by people who share similar normspeople who share similar norms

Another factor is that when a Another factor is that when a consumer buys a product that consumer buys a product that conforms with social norms, then conforms with social norms, then they feel that it makes them feel they feel that it makes them feel better about themselves (social better about themselves (social acceptance and self esteem)acceptance and self esteem)

PERSONAL VALUES CONTINUEDPERSONAL VALUES CONTINUED

BELONGING BELONGING SOCIAL RECOGNITIONSOCIAL RECOGNITION LOVE LOVE ACHIEVEMENT ACHIEVEMENT FUN ENJOYMENT- EXCITEMENTFUN ENJOYMENT- EXCITEMENT SECURITYSECURITY THE WELFARE OF FUTURE GENERATIONSTHE WELFARE OF FUTURE GENERATIONS HAPPINESSHAPPINESS

TERMINAL AND TERMINAL AND INSTRUMENTAL VALUESINSTRUMENTAL VALUES

Terminal values are key to the means end Terminal values are key to the means end theory, whose aim is to understand the theory, whose aim is to understand the motivation that drive the consumers behaviormotivation that drive the consumers behavior

According to Milton Rokeach, a terminal value According to Milton Rokeach, a terminal value is “ an enduring belief that a specific mode of is “ an enduring belief that a specific mode of conduct or end state is personally or socially conduct or end state is personally or socially preferable to an opposite or converse mode of preferable to an opposite or converse mode of conduct or end state of existence”conduct or end state of existence”

The term instrumental value is used to The term instrumental value is used to designate a belief about a preferred mode of designate a belief about a preferred mode of existenceexistence

TERMINAL VALUESTERMINAL VALUES(Rokeach’s Value Survey-18)(Rokeach’s Value Survey-18)

Comfortable lifeComfortable life Exciting lifeExciting life Sense of accomplishmentSense of accomplishment PleasurePleasure Self respectSelf respect Social recognitionSocial recognition A world of peaceA world of peace EqualityEquality FreedomFreedom True friendshipTrue friendship wisdomwisdom

INSTRUMENTAL VALUESINSTRUMENTAL VALUES

AmbitiousAmbitious BroadmindedBroadminded CheerfulCheerful CourageousCourageous ForgivingForgiving HelpfulHelpful IndependentIndependent ObedientObedient PolitePolite Self-controlledSelf-controlled

IMPORTANCE OF THE MEANS IMPORTANCE OF THE MEANS END THEORY TO CONSUMER END THEORY TO CONSUMER

DECISION MAKINGDECISION MAKING To the customer, the value comes firstTo the customer, the value comes first E.g. a mother who value being a good mother, E.g. a mother who value being a good mother,

will want a healthy child, and to get a healthy will want a healthy child, and to get a healthy child it is important that that child has no child it is important that that child has no cavities and so to prevent cavities, then it is cavities and so to prevent cavities, then it is important to get a toothpaste with fluoride.important to get a toothpaste with fluoride.

Fluoride itself has no meaning in and of itselfFluoride itself has no meaning in and of itself Fluoride assumes meaning for individual Fluoride assumes meaning for individual

customers when the personal values of those customers when the personal values of those customers invest fluoride with meaning.customers invest fluoride with meaning.

This set of associations is a called a This set of associations is a called a means-end chain because consumers means-end chain because consumers see the product and its attributes as a see the product and its attributes as a means to an endmeans to an end

Desired ends involves satisfying the Desired ends involves satisfying the self relevant consequences and valuesself relevant consequences and values

Means end approach implies that Means end approach implies that product attribute, per se, have little or product attribute, per se, have little or no importance or relevance to the no importance or relevance to the consumerconsumer

Attributes have meaning and value for Attributes have meaning and value for consumers largely in terms of consequences consumers largely in terms of consequences they are perceived to bring aboutthey are perceived to bring about

The end consequences in a means end The end consequences in a means end chain is often a personal goal or a life value chain is often a personal goal or a life value the consumer is striving to achievethe consumer is striving to achieve

Thus the means end chains of linked Thus the means end chains of linked consequences are the basis for the consequences are the basis for the evaluation of the attributes. (Is this attribute evaluation of the attributes. (Is this attribute a good thing or a bad thing for me? How a good thing or a bad thing for me? How good or how bad?good or how bad?

Related to the focus consequences Related to the focus consequences and outcomes is the accompanying and outcomes is the accompanying focus on behaviorfocus on behavior

Most consequences associated with Most consequences associated with the attributes of a product occur the attributes of a product occur either directly or indirectly as a either directly or indirectly as a function of behaviors performed by function of behaviors performed by consumersconsumers

By themselves attributes cannot By themselves attributes cannot have consequenceshave consequences

Consumers must perform a behavior, Consumers must perform a behavior, particularly product usage behaviors, that particularly product usage behaviors, that then generate consequencesthen generate consequences

Attributes taken alone have no Attributes taken alone have no consequences and thus have no relevanceconsequences and thus have no relevance

Consequences occur when consumer buys Consequences occur when consumer buys and consumes (or uses) the product and and consumes (or uses) the product and thereby experiences the consequences of thereby experiences the consequences of use e.g. to experience the consequence of use e.g. to experience the consequence of pleasurable taste and hunger one must first pleasurable taste and hunger one must first buy a candy bar, open the wrapper and eat buy a candy bar, open the wrapper and eat the barthe bar

If these behaviors are not performed the If these behaviors are not performed the consequences will not occurconsequences will not occur

NOTE: consequences consumers NOTE: consequences consumers experience are partly due to the experience are partly due to the consumption behavior of the consumerconsumption behavior of the consumer

Marketers will be interested in other types Marketers will be interested in other types of consequences associated with candy of consequences associated with candy consumption e.g. littering so they will be consumption e.g. littering so they will be interested in other behaviors e.g. interested in other behaviors e.g. discarding the wrappersdiscarding the wrappers

The essence of the means end view of The essence of the means end view of consumer decision making is that consumer decision making is that consumers make decision to solve consumers make decision to solve problems (obtain desired problems (obtain desired consequences) and those consequences) and those consequences are relevant consequences are relevant considerations in decision making considerations in decision making because of their perceived relations because of their perceived relations with the goals or values that are salient with the goals or values that are salient in that decision context.in that decision context.

Thus in making decisions about which Thus in making decisions about which product or brand to buy, the consumer product or brand to buy, the consumer necessarily focus on consequences necessarily focus on consequences ( outcomes or experiences), rather than ( outcomes or experiences), rather than attributesattributes

Products or product attributes, per se, are Products or product attributes, per se, are not inherently important to consumersnot inherently important to consumers

Consumers think about likely solutions to Consumers think about likely solutions to their problems when making purchase their problems when making purchase decisionsdecisions

IMPORTANCE OF THE MEANS IMPORTANCE OF THE MEANS END THEORY TO THE END THEORY TO THE

MARKETERMARKETER1. CONSUMER BEHAVIOUR1. CONSUMER BEHAVIOURThe means-end approach can help The means-end approach can help marketing managers understand marketing managers understand how and why consumers make how and why consumers make purchase decisions and then use purchase decisions and then use this understanding of customer this understanding of customer motivation to guide their thinking motivation to guide their thinking about marketing strategy (FOCUS about marketing strategy (FOCUS ON CUSTOMER)ON CUSTOMER)

Using the means-ends approach to Using the means-ends approach to develop marketing strategy begins develop marketing strategy begins by understanding how current by understanding how current customers see the personal customers see the personal relevance of a product categoryrelevance of a product category

This entails conducting a laddering This entails conducting a laddering interview that would produce a set of interview that would produce a set of means-end chains obtained from means-end chains obtained from various groups of customervarious groups of customer

What is obtained is then used to form What is obtained is then used to form a map called a hierarchical value a map called a hierarchical value map (HVM) or consumer decision map (HVM) or consumer decision map.map.

The means end theory enables the The means end theory enables the marketer create a satisfied customer marketer create a satisfied customer (Ted Levitt)(Ted Levitt)

2.MARKET SEGMENTATION2.MARKET SEGMENTATION

Means-end approach can be used to Means-end approach can be used to segment a market. Customers who segment a market. Customers who possess various Means-Ends possess various Means-Ends orientations would respond orientations would respond differently to market offerings. So differently to market offerings. So they can be treated as different they can be treated as different market segmentsmarket segments

3. FOCUS ON BENEFITS3. FOCUS ON BENEFITS

the means-end theory reflects the the means-end theory reflects the sequence in which important sequence in which important information is typically collected from information is typically collected from customers in their personal interviewscustomers in their personal interviews

Customers have to identify the Customers have to identify the product attribute that make that product attribute that make that product uniqueproduct unique

The customers is then asked to The customers is then asked to identify the benefit of that attributeidentify the benefit of that attribute

They are then made to identify the personal value they get from the product attributeThe marketer is therefore able to focus on what benefits the customers and this will be to his advantage.Marketers must see themselves not as producing products but as providing customer creating value satisfactions.

4. ASSESSING MARKET TRENDS4. ASSESSING MARKET TRENDS

Means and end theory asserts that product Means and end theory asserts that product attributes are the anchors for the meanings attributes are the anchors for the meanings that consumers find in products.that consumers find in products.

Product attributes yield benefits which move Product attributes yield benefits which move the consumers closer to their vision of the the consumers closer to their vision of the good life described by their personal values.good life described by their personal values.

Through studying the customer decision maps, Through studying the customer decision maps, the marketer is able to establish the desires of the marketer is able to establish the desires of the consumers and also establish market the consumers and also establish market trends trends

This will then make it possible for the marketer This will then make it possible for the marketer to produce products which will be in line with to produce products which will be in line with the trends and the desires of the consumers.the trends and the desires of the consumers.

5. CREATING SUSTAINED COMPETIVE 5. CREATING SUSTAINED COMPETIVE SUPERIORITYSUPERIORITY

Positioning begins with the customers. Positioning begins with the customers. According to Peter Drucker the aim of the According to Peter Drucker the aim of the

marketer is to satisfy the customer.marketer is to satisfy the customer. In doing so, the marketer should know In doing so, the marketer should know

what the consumer wants and the words what the consumer wants and the words that they use to express what they wantthat they use to express what they want

Focus should be on the consumer not on Focus should be on the consumer not on the competitorthe competitor

Once this is done, then the marketer can Once this is done, then the marketer can use this to gain a competitive use this to gain a competitive advantage /superiority over their advantage /superiority over their competitors.competitors.

CONCLUSIONCONCLUSION

This theory therefore emphasizes on This theory therefore emphasizes on the behavior of the consumer and the behavior of the consumer and emphasizes on the attributes, emphasizes on the attributes, consequences and personal values consequences and personal values which are the end and are which are the end and are considered to be very important in considered to be very important in the consumers decision making when the consumers decision making when purchasing a product or a service.purchasing a product or a service.

REFERENCESREFERENCES

1. Finley P. An application of Means End Theory to analyse the 1. Finley P. An application of Means End Theory to analyse the college selection of female athletes at an NCCA division college selection of female athletes at an NCCA division 11 university11 universityOlson J, Reynold T, The means-end approach to Olson J, Reynold T, The means-end approach to Understanding consumer decision making. (2001)Understanding consumer decision making. (2001)

2. Parry Mark, Strategic marketing management-Means-End 2. Parry Mark, Strategic marketing management-Means-End approach. McGraw-Hill, New York, Chicago, 2001.approach. McGraw-Hill, New York, Chicago, 2001.

3. Percy L, A Woodside ed. Understanding consumer cognitive 3. Percy L, A Woodside ed. Understanding consumer cognitive structure: Implication for advanced strategy and structure: Implication for advanced strategy and advanced consumer psychology. Volume 1 pp 77-advanced consumer psychology. Volume 1 pp 77-90.Lexington, 1983.90.Lexington, 1983.

4. Peter F.Drucker, The practice of management ( New York: 4. Peter F.Drucker, The practice of management ( New York: Harper and Row, 1954).Harper and Row, 1954).

Websites:Websites:• www.wildernessinquiry.org-understandingwww.wildernessinquiry.org-understanding means end means end

theory for wilderness inquiry trips.theory for wilderness inquiry trips.