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Chapter 16 Consumer Behavior and Product Strategy

Chapter 16 Consumer Behavior and Product Strategy. Product Related Affect/Cognition. Consumer Satisfaction Consumers respond to Expectations Performance The discrepancy or difference between expectations and performance. Positive disconfirmation = satisfaction

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Chapter 16 Consumer Behavior and Product Strategy

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  1. Chapter 16 Consumer Behavior and Product Strategy

  2. Product Related Affect/Cognition • Consumer Satisfaction • Consumers respond to • Expectations • Performance • The discrepancy or difference between expectations and performance. • Positive disconfirmation = satisfaction • Negative disconfirmation = dissatisfaction

  3. A Expectancy Disconfirmation Approach to Satisfaction Prepurchase performance expectations Post purchase performance perceptions Disconfirmation Satisfaction / dissatisfaction

  4. Product Related Behavior • Brand Loyalty/Variety Seeking • Relates to the pattern of behavior, especially purchase behavior, over a period of time.

  5. Categories of Brand Commitment and Purchasing Patterns Brand Loyalty Variety Seeking High Consumer Commitment Repeat Purchase Varied Behavior Low Single Multiple Number of brands purchased in a particular time period

  6. Brand Loyalty and Usage Rate Brand Loyalty Brand-loyal heavy users Brand-loyal light users Light usage Heavy usage Brand-indifferent light users Brand-indifferent heavy users Variety Seeking

  7. Strategies for Usage Rate Matrix • Brand-loyal heavy user: • Encourage loyalty and encourage switching to our brand. • Brand-loyal light user: • Encourage greater usage rate. • Variety seeking heavy user: • Make firm’s brand a salient attribute. • Variety seeking light user: • Increase salience of brand name as attribute and increase usage.

  8. The Adoption curve: Consumer Attributes Innovators Early Early Late Laggards adopters adopters adopters 3-5% 10-15% 34% 34% 5-15% % Adoption rate 0% 100% Time

  9. Product Strategy: Product Attributes • Compatibility • How well does this product fit consumers’ current affect, cognitions and behavior? • Triability • Can the consumer try the product on a limited basis with little risk? • Observability • Do consumers see or otherwise sense this product? • Speed • How soon do consumers experience the benefits of this product?

  10. Product Attributes (continued) • Simplicity • How easy is it for consumers to understand and use this product? • Relative advantage • What makes this product better than competitive offerings? • Product symbolism • What does this product mean to consumers? • Marketing strategy • What is the role of other marketing mix elements in creating a functional or image-related relative advantage?

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