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DESCRIPTION
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Means-End Theory
AIRCEL
Core Philosophy….
• Key Questions– Who are my potential customers? • Segmentation
– What does matter—and what might matter—to potential customers?• Positioning
– On which of the things that matter should I focus?• Value Proposition
The core issue is –Why products and services have meaning for customers?
Meaning to customer…..
• Why does a customer buy a product? • What does it mean to a customer having a
product?• What happens if he does not have the
product?• Therefore, what does AIRCEL sell?
Welcome to the “Means-End Chain”
Personal Values
Psychological Benefits
Instrumental Benefits• Functional• Experiential• Financial
Abstract Attributes
Performance Attributes
Intrinsic Attributes Extrinsic Attributes
Virgin Mobile UK…
• What are the key features of the product?– Product—prepaid– Pricing—fairly uniform– Product off the shelf—self service– Customer Service– Operations—IT, Network Systems etc.– Brand– Communication….
Attribute (feature) identificationAttribute
One-dimensional
Pre-Performance
Intrinsic
Materials
Form
Manufacturing
Extrinsic
Brand
Price
Customer Service
Performance
Objective
Subjective
Multidimensional
Abstract
User Imagery
Use Situation Imagery
Weighted Multi-attribute
Evaluation
Relationships between attributes
Abstract Attributes
Performance Attributes
Intrinsic Attributes Extrinsic Attributes
The Attribute Matrix
• It is always useful to map the intrinsic attributes and the extrinsic attributes. – Customers normally pay attention to the extrinsic
attributes or performance attributes rather than the intrinsic attributes…..for example you are more bothered by whether Chloromint disguises the smell of cigarettes rather than the active ingredient “Herbasol” that leads to this extrinsic attribute.
Less Confusion Good at Local For youth
Wide acceptance
Single Price
Fewer Choices Colourful Packs Network
Off-the-Shelf
Exercise: Draw up the attribute classification for Aircel
The Attribute Map for Virgin Mobile, UK
Brand name
Colourful Packs
Sales through Stores
Pre-PaidCustom
er Service
Simple Price
Structure
The Attribute Map for Virgin Mobile, UK
Brand name
Colourful Packs
Sales through Stores
Pre-PaidCustom
er Service
Simple Price
Structure
Ease of PurchaseFun
The Attribute Map for Virgin Mobile, UK
Brand name
Colourful Packs
Sales through Stores
Pre-PaidCustom
er Service
Simple Price
Structure
Ease of PurchaseFun
For Youth
What do the attributes do?
• Provide benefits……– In August 1997, Sony introduced the Mavica digital
camera. The product was inferior to all current digital cameras in terms of picture quality and price• However, it had one feature which enabled the user to
store images on floppy discs which simplified the process of transferring the photos to the customer’s PC. No other camera offered this feature—the customer valued the benefit of “quick and easy” over “great photos”
• What this shows is that companies get so focused on a single benefit that they lose sight of the “bigger” picture.
Two Questions…..
• What benefits matter?• How are the benefits related?
Typology of Benefits
Benefits
Instrumental
Functional
Process
Output
Experiential
Process
Output
Financial
Process
Output
Expressive
Psychosocial
Process
Output
Output benefits Process benefit
Functional benefits
Experiential benefits
Financial Benefits
Psychosocial benefits
Relationship between benefits….
Functional
Psychosocial
Experiential Financial
Virgin Mobile UK—Benefits mappingAttributes Functional
benefitExperiential benefit
Financial Benefit
Psychosocial benefit
No Contracts Easy to procure Convenience Lower Search Cost
No fear of rejection
No Price Buckets
Less Confusion Convenience Less overuse cost
“All are same”
No Hidden Fees Trust more Loyalty Less costs Peace of Mind
No Peak/ off peak hours
More Use—less planning
Less “guilt” while using
Less costs Peace of Mind
No Credit Checks
Easy to buy Convenience Less Search costs
No fear of rejection
Simple Sales Process
Easy to buy Convenience Lower transaction cost
Immediate Gratification
Great Service Trust and good experience
A “good” feeling
Lower Search Costs
Happiness
So, Uni-dimensional
Attribute
Abstract Attribute
Instrumental benefits
Psychological benefits
Exercise
• Draw up the Attribute-benefit map for AIRCEL
How does the movement happen…
Product Attribute
How does the movement happen…
Product Attribute Benefit
How does the movement happen…
Brand Attribute Benefit
How does the movement happen…
Brand benefit
The basic issue…• Customers buy products with attributes…but what they
want is benefit….– However, no product offers all the benefits that is sought by the
customer…– So, the customer prioritizes benefits…
• Should I look for network quality or customer service?• Should I look for price or brand name?
– How does the customer “tradeoff”?• Depends on their “Values”
• It is virtuous to spend Rs. 2,00,000 on your kitchen, but you think 15 times spending Rs. 30000 on a mobile phone! – Why? Depends on our “value systems”
What are values?
• Social mores/norms that have developed thru ages which the consumer believes in….– Consistent yet changing…..
• People have to purchase goods that are consistent with social norms else there will be dissonance and anxiety.– Society has to feel good about ourselves– We have to feel good about ourselves.
Nature of values…..• Terminal Values: A preferred “end-state of existence”
– A comfortable life—A prosperous life– An exciting life (stimulating and exciting life)– A sense of accomplishment (lasting contribution to society/family)– Pleasure (enjoyable life)– Self-respect (self esteem)– Social recognition (respect admiration)– A world of beauty– Equality– Freedom– Happiness– Spiritual life
• Instrumental Values: refers to “modes of conduct” to achieve “end-state of existence” – Ambitious (Hard working)– Broadminded– Capable– Cheerful– Clean– Courageous– Forgiving– Helpful– Honesty– Imaginative
So, essentially
Instrumental Values Terminal Values
Personal ValuesInstrumental/Terminal
Psychosocial Benefits
Instrumental Benefits• Functional• Experiential• Financial
Abstract Attributes
Performance Attributes
Intrinsic Attributes Extrinsic Attributes
Therefore, questions you should be asking
• What values matter to your current and potential customers?
• How common are each of the values you have identified above
• Are customers consistent across purchase situations?
• What are the attribute-benefit-value linkages you have identified?– Customer Decision Mapping
CDM: Consumer Decision Mapping
• Nature– Attributes are anchors for meanings that
consumers find in products• Specifically: Attributes lead to Benefits that lead to
value• This is called the Means-end ladder—which is a chain
containing one or more attributes leading to one or more benefits leading to one or more values.
– Mapping the various ladders visually is called the consumer decision map or CDM
Flip-top Cap
Squeezable tube Price Fluoride Sweet
FlavorCartoons
on package
No looking for cap
Less Mess
Less Waste
Tastes Good
Brush Longer
Fun
Fewer Cavities
Neater Bathro
om
Less Irritatio
n
Clean Home
Healthy Child
Attractive
Smile
Happy Child
Good Mother
Save Money
CDM for a Toothpaste
Pre-Paid
Available everywhere
Single Price
Bucket
Excellent Customer Service
Attractive Packaging
No Credit Checks
No Contrac
ts
Easy to purchas
eFun
Easier Transac
tions
Convenient
Less Irritation Peaceful CheerfulHonest
CDM for Virgin Mobile
Transparent
Pleasurable and Happy end-state
Exercise.
• Draw up the possible Consumer Decision maps for Aircel.
Key question…..
• What Attribute-Benefit-Value ladder we focus on?– Question of Segmentation– This we will see tomorrow!