1

Product Knowledge and Involvement

Product Knowledge and Involvement1

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

2

Hierarchy of Product Competition (cont)

• Form Competition – 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.

3

Levels of Product Knowledge

Product Class Brand

Product Form Model/Feature

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

•1-pound can•8-ounce jar

•Folgers•Maxwell House

•Ground• Instant

Coffee

4

Levels of Product Knowledge

Product Class Brand

Product Form Model/Feature

Beer • Imported•Light•Low alcohol

•Heineken•Coors Lite•Sharps

•Dark•Kegs•12-ounce cans

Pens •Ballpoint•Felt tip

•Bic•Pilot

•$0.79 model, regular tip

•$0.99 model, extra-fine tip

5

PRODUCT LIFE CYCLE STAGES OF THE DECISIONS PROCESS FOR INSTANT COFFEE

MIL

LIO

NS

OF

PO

UN

DS

| | | | | | | | | | |1948 1950 1952 1954 1956 1958 1960 1962 1964 1966 1968

180-

160-

140-

120-

100-

80-

60-

40-

20-

6

Introduction Growth Maturity Decline

Sales Low Fast Slow DeclineGrowth Growth

Product Life Cycle Characteristics

Profits

Cash Flow

CustomerDescription

Number of Competitors 7

Product Life Cycle Characteristics Introduction Growth Maturity Decline

Strategic Focus

Marketing Expenditures

Marketing Emphasis

DistributionIntensity

Price

Product8

Types of Product Knowledge1. Bundle of Attributes - Tangible (concrete) or

intangible (abstract) characteristics of the product

Nike running shoes

Arch support

Tread design

$89.95

Lacing pattern

9

Types of Product Knowledge

2. Bundle of Benefits - Consequences or outcomes when purchasing and using products & services (Functional, Psychosocial)

Nike running shoes

Long-wearing

Stabilize heel

Runfaster 10

Types of Perceived Risk

Benefit risks:

1. Functional

2. Physical

3. Financial

4. Social

5. Psychological

11

Types of Product Knowledge

3. Value Satisfaction - Cognitive representations of important broad life goals that consumers are trying to achieve

Be physically

fit

Have good health

Live a long life

Nike running shoes

12

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.

The Means-End Chain

13

Attributes

Functional Consequences

Means-End Chains of Product Knowledge

Psychosocial Consequences

Values Lev

el o

f A

bst

ract

ion Less

More

14

Means-End Chain Example:Gillette Sensor Razor

ATTRIBUTESCONSEQUENCES

FUNCTIONAL PSYCHOSOCIAL VALUES

Spring suspension

for twin blades

Lubricating strip

Close shaveBe well

groomed

Smooth, soft shave

Be comfortable

Beattractive

Relaxed Not

stressed

15

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

16

Components of Involvement

1. Importance and risk (the perceived importance of the product and the consequences of a bad purchase)

2. Probability of making a bad purchase

3. Pleasure value of the product category

4. Sign value of self identify

1, 2, 3, 14

4, 5, 6, 7

8, 9, 10

11, 12, 13, 15, 16

17

Involvement Profiles of French Consumers(100 = average)

Negative Pleasure Sign

Consequences Mispurchase Value Value

Detergents 79 82 5663

Dresses 121 112 147181TV Sets 112 100 12295

Vacuum Cleaners 110 112 7078

Champagne 109 120 125125

Yogurt 86 83 10678

Facial Soap 82 90 114118

18

Model of Consumer Product Involvement

Consumer characteristics

Product characteristics

Environmental characteristics

• Time commitment

• Price

• Symbolic meanings

• Potential for poor performance

• Purchase situation

• Time pressure

• Social environment

• Physical environment

• Self-concept -- basic values, goals, needs

• Personality traits

• Expertise

19

Model of Consumer Product Involvement

Consumer characteristics

Product characteristics

Environmental characteristics

Intrinsic Self

Relevance

Situational Self

Relevance

Interpretation & Integration

ProcessesInvolvement

20

Factors that Influence InvolvementLower Involvement Higher Involvement

(Toothpaste) (Automobile)

Symbolic meanings Few Many

regarding self:

Social visibility of product

Price:

Potential harm toself and others

Potential for poor performance:

Time commitment to the purchase:

21