Chapter 4: Consumers Product Knowledge and Involvement

CONSUMER BEHAVIOR AND MARKETING STRATEGY

by

J. Paul Peter & Jerry C. Olson

Fifth Edition

Irwin McGrawhill Companies

Copyright 1999

United States
CHAPTER IV: CONSUMER PRODUCT KNOWLEDGE AND INVOLVEMENT

Gillette Knows Shaving

Every working day a gritty Gillette plant in South Boston, some 200 men and women enter an aging building with a quaint sign, “World Shaving Headquarters. “The men lather up their faces and begin to shave off the 0.015 of an inch their 10,000 whiskers grew in the previous 24 hours. This is one way Gillette learns about consumer reactions to its new product ideas in the wet shaving market. After shaving with a new prototype razor blade, each person peers into a mirror and evaluates the razors of the future for such factors as “closeness of shave, sharpness of blade, smoothness of glide and ease of handling.”Then they punch their judgments into a computer for later analysis. In a nearby shower room, the women do similar product ratings after shaving their legs and under arms, or perhaps what Gillette calls the “bikini area”.

Such research, supplemented by dozens of other marketing research studies, has helped Gillette churn out a nearly unprecedented stream of successful new products. By marketing as many as 20 new products per year. Gillette derived over 40 percent of its 1996 sales from products introduced in the previous five years. From 1990 to 1995 earnings climbed at an annual rate of 17 percent and profit margins rose an average of 12 percent.

Gillette’s most important new product has been the phenomenally successful sensor razor systems for men and women: Developed at great effort and expense (29 patents and over $275 million in research and development costs), the Sensor was an immediate hit with men, but it was less popular with women. So Gillette spent over nine months talking to women about what they needed from a razor and as a result, learned that handles of men’s shavers tended to slip in the shower or bath where women shave most often and that men’s razors are difficult to maneuver over the curved surfaces of women legs.

Based on the that research, Gillette created Sensor for Women, a radically new razor with a broad, ridged handle designed for a comfortable, nonslip fit in the palm of a woman’s hand. Moreover, the razor has a lubricating strip impregnated with aloe to feel satiny on the skin. About the only thing it has in common with the men’s Sensor is the pivoting twin blade cartridge. Introduced in 1992, sales for the Sensor for Women in the first 18 months were 11 million, roughly matching sales 0f 12 million of the men’s model during its equivalent introductory period.

CEO Alfred Zeien takes pride in Gillette’s strategic policy of marketing only those products that offer consumers significant improvements in shaving performance. That means not putting superficial frills on existing products and calling them innovations…a practice Zeien likens to “putting blue dots in the soap powder.”For example, Gillete introduced an improved version of the Sensor in 1993-94, called SensorExcel, with a pair of rubber strips under the twin blade cartridge that raise beard bristles for an even closer shave. By continuing to provide such benefits for consumers, Gillette accounts fofr roughly one third of the 20 billion blades sold annually around the world.

Sources: Adapted from Linda Grant, “Gillette Knows Shaving And How to Turn Out Hot New Products,”Fortune, October 14, 1996, pp.207-10; and Rita Koselka, “It’s My Favorite Statistic,”Forbes, September 12, 1994, pp. 162-76. At this writing, the Gillette Company does not maintain a web site in the United States, but you can check out its Brazilian Web site at http://www.gillette.com.br/ (it will help if you can speak Spanish, of course).

This description of Gillette’s shaving business illustrates the importance of product attributes in marketing strategy and the need for marketers to understand what consumers think about product attributes and related concepts. In this chapter, we examine consumers’ product knowledge and involvement, two important concepts in the affect and cognition portion of the wheel of consumer analysis model. We begin by discussing four levels of product related knowledge. Then we discuss consumers knowledge about product attributes, benefits and values. We show how these three types of meaning can be linked to form a simple associative network of knowledge called a means end chain. Next we examine the important concept of consumers interest or involvement with products and other aspects of their environment. The means end model is used to help explain consumers ‘feelings of involvement. We conclude the chapter by discussing how means end chains can be used to analyze consumers relationships with products and brands and how marketing strategies can influence consumers involvement with products.

Levels of Product Knowledge

Consumers have different levels of product knowledge, which they can use to interpret new information and make purchase choices. Levels of knowledge are formed when people acquire separate meaning concepts (accretion process) and combine them into larger, more abstract categories of knowledge (tuning). For instance, you might combine knowledge about the braking, acceleration, and concerning ability of an automobile to form a more inclusive concept that you call handling. Your knowledge of handling is at higher, more abstract level because it includes these less abstract meanings. Another example is the various types of bicycles that make up the overall bike category racing, mountain, road bikes, city bikes. Each of these meaning categories can be separated into more specific knowledge categories (different types of road bikes or mountain bikes). Thus, a person’s knowledge about bikes, mountain bikes, and types of mountain bikes may form a hierarchical structure of bicycle knowledge at different levels.

Exhibit 4.1

Levels of Product Knowledge

 

 

Product Class	Product Form	Brand	Model/Features
Coffee	Ground Instant	Folgers Maxwell House	3 pound can 8 ounce jar
Automobiles	Sedan Sports car Sports sedan	Ford Taurus Mazda Miata BMW	Station wagon, with air and power steering Leather seats, with air and 5 speeds Model 325e, with air and automatic transmission
Pens	Ball point Felt tip	Bic Pilot	$.79 model, regular tip $.99 model, extra fine tip
Beer	Imported Light Low alcohol	Heineken Coors Lite Sharps	Dark Kegs 12 ounce cans

No one level of knowledge captures all the possible meanings of an object, event, or behavior. Each level of meaning is useful for certain purposes, but not all purposes. Meanings at different levels of abstraction are related hierarchically in that more abstract meanings subsume (incorporate or include) meanings at lower levels. Thus, “responsiveness” for a tennis racquet subsumes the materials of its construction, the head shape, the type of strings and so non. We use the concept of levels of meaning throughout the text to help us understand consumers product knowledge. Consumers can have product knowledge at four levels the product class, product forms, brands and models. Exhibit 4.1 gives examples of each level of product knowledge.

Marketers are very interested in consumers knowledge about brands. Most marketing strategies are brand oriented in that they are intended to make consumers aware of a brand, teach them about a brand and influence them to buy that brand. Most marketing research focuses on consumers knowledge and beliefs about brands, Likewise, much our discussion in this text will concern consumers brand knowledge.

For some products, consumers can have knowledge about models, a more concrete level of product knowledge than brands. A model is a specific example of a brand that has one or more unique product features or attributes (Exhibit 4.1 gives several examples). For instance, Nikon 35 mm cameras are available in several different models; coca-cola comes in diet, caffeine free, cherry flavored and other versions; and Hagen Dazs ice cream is sold in different flavors. The 325, 528, and 740 models of BMW automobiles vary in size, price and exterior design and in distinctive features and options such as air conditioning, fancy wheels, automatic braking systems, leather seats and so on.

Going in a more abstract direction from the brand and model levels of knowledge, a product form is a broader category that includes several brands that are similar in some important way. Often the basis for a product form category is a physical characteristic that the brands share. For instance, freeze dried, instant, ground, and whole bean coffee are defined by their physical form. In some cases, certain product forms become so well established in consumers minds that marketers can treat them as separate markets. Diet soft drinks, sports sedans, fast food hamburger restaurants and laptop computers are examples.

The product class is the broadest and most inclusive level of product knowledge and may include several product forms (and many brands and models within those categories). Coffee, cars, and soft drinks are examples. Concepts at the product class level may have relatively few characteristics in common (the various product forms of coffee are made from coffee beans). Marketing strategies to promote the entire product class can be effective for promoting brands with a high market share. For example, Frito Lay might promote consumption of salty chip snacks (a product class that includes various types of potato and flavored chips). Because the company controls as much as a 60 percent market share, any increase in overall consumption of the product class is likely to benefit Frito Lay more than its competitors.

Because consumers are likely to make separate purchase decisions at each level of knowledge, marketers need to understand how consumers organize their product knowledge in terms of these different levels. For instance, a consumer might make a choice between alternative product classes (Should I purchase a large screen TV or a portable?), various brands (should I buy an RCA or a Sony TV?) and alternative models (Should I choose a 27 inch RCA TV with stereo speakers or a 32 inch RCA set with surround sound?). All of these levels of product knowledge are relevant to the marketing manager, with the brand level of particular importance.

Consumers Product Knowledge

Consumers can have three types of product knowledge-knowledge about the attributes or characteristics of products, the positive consequences or benefits of using products, and the values the product helps consumers satisfy or achieve (see Exhibit 4.2). Marketers should understand these three types or levels of consumers product knowledge to develop effective marketing strategies.

Exhibit 4.2

Types of Product Knowledge

Bundle of attributes: Nike running shoes: Arch support

                                                                        Tread design

                                                                        $89.95

                                                                        Lacing pattern

Bundle of benefits: Nike running shoes: Long wearing

                                                                    Stabilize heel

        Run faster

Value Satisfaction: Nike running shoes: Be physically fit

        Have good health

        Live a long life

Product as Bundles of Attributes

As the Gillette example demonstrates, marketers have many strategic options when it comes to product characteristics or attributes. Within the limits imposed by production capabilities and financial resources, marketing managers can add new attributes to a product (“Now, Diet 7up contains 100% NutraSweet”), remove old attributes (in 1985, Coca-Cola managers modified the century old secret recipe for Coke). Marketers can change brand attributes in an attempt to make their products more appealing to consumers. For instance, to give Liquid Tide its cleaning power, chemist at Procter & Gamble created a new molecule and included twice as many active ingredients as competitive brands. The 400,000 hours of research and development time seemed to pay off as Liquid Tide’s initial sales skyrocketed. Highlight 4.1 describes a new model introduction based on a specific product attribute.

Perhaps because they are so interested in the physical characteristics of their products, marketers sometimes act as if consumers think about products and brands as have varying lead densities, softness of erasers, shapes and colors). Of course, complex products such as automobiles and stereo receivers have a great many attributes. From a cognitive processing perspective, however, we might wonder if consumers really have knowledge in memory about all of these attributes and whether consumers actually activate and use this knowledge when deciding which products and brands to buy. Marketers need to know which product attributes are most important to consumers, what those attributes mean to consumers, and how consumers use this knowledge in cognitive processes such as comprehension and decision making.

Highlight 4.1

Reebook Adds a New Attribute

Reebook International hoped that adding a new attribute to its high end running shoes would put it back in the running against arch rival Nike. In the spring of 1997, Reebok introduced the DMX running shoe in some 5,000 retail outlets across the United States with several models for men and women The DMX contained chambers built into the sole of the shoe that allow air to move freely under the runner’s foot as the heel strikes the ground and then rolls forward in the shoe, finally pushing off with the toes. In contrast, Nike’s high end Air Jordan shoes have stationary chambers of encapsulated gas (air), and some other brands have gel inserts that cushion the force of the runners weight with each stride.

Does this attribute make a difference to consumers? Although many shoe innovations do not produce a noticeable benefit to the user, runners who have used the DMX report that they could really feel the air moving underfoot. Now the question is whether the new attribute delivers a benefit that is relevant and valuable to runners. Will runners wearing the DMX run faster, longer, or with more comfort? Will walkers find the shoe more comfortable or supportive? Will people wearing DMX feel higher status and positive recognition from others?

Moreover, if people recognize such benefits, will they switch from their favorite brands and models to the DMX? Runners, like smokers, tend to stick with a brand or model they like, once they find it. To break through that inertia, Reebok sent truckloads of shoes around the country , to place like the Boston Marathon and Central Park in New York City, inviting people to try DMX and compare it to the sneakers they were wearing. Reebok believed that once someone experienced the feeling of wearing DMX sneakers, they would make the switch.

The price of the DMX models may help stimulate sales,too. Compared with top of the line Nike models that sell at the $140 to $160 level or even higher, the DMX sells for about $110, still expensive, but a relative saving.

Of course, while Reebok introduced the DMX, the other combatants in the sneaker wars were not standing still. Nike and Fila developed several models at the $100 to $125 price point. Adida’s new models seemed to be increasingly popular with the 18 to 29 age group.

Sources: Joseph Pereira,”Nike’s Rivals Hope Buyers Want Bargains,”The Wall Street Journal, June 2, 1997, pp. B1, B7; Joseph Pereira, “Can Air Pockets Help Reebok Catch Nike in High Performance Sneaker Marathon?” The Wall Street Journal, March 27, 1997, pp. B1, B19. Reprinted by permission of the Wall Street Journal, ©1997 Dow Jones & Company, Inc. All Rights Reserved Worldwide. Check out the DMX models at the Reebok Web site, http://www.reebok.com

Consumers can have knowledge about different types of product attributes. Consumers knowledge about concrete attributes represents tangible, physical characteristics of a product such as the type of fiber in a blanket or the front seat legroom in a car. Knowledge about abstract attributes represents intangible, subjective characteristics of a product such as the quality of warmth of a blanket or the stylishness or comfort of a car. In addition, consumers knowledge may also contain affective evaluations of each attribute (I don’t’ like the itchiness of wool blankets; I love cookie dough ice cream).

 Product as Bundles of Benefits

Marketers also recognize that consumers often think about products and brands in terms of their consequences, not their attributes. Consequences are the outcomes that happen when the product is purchased and used or consumed. For instance, a stereo system might be very loud, require assembly or repairs, or make the user feel proud. A facial cream might cause an allergic reaction or cost too much. Other consumers might think the buyer is either hip or foolish for buying a certain brand of jeans or sneakers.

Consumers can have knowledge about two types of product consequences functional and psychosocial. Functional consequences are tangible outcomes of using a product that consumers experience rather directly. For instance, functional consequences include the immediate physiological outcomes of product use (eating a Big Mac satisfies your hunger; drinking a Pepsi eliminates your thirst). Functional consequences also include the physical, tangible performance outcomes of using or consuming a product a hair blower dries your hair quickly, a car gets a certain number of miles per gallon, a toaster browns bread evenly, and an ink pen writes smoothly without skipping.

Psychosocial consequences refer to the psychological and social outcomes of product use. Psychological consequences of product use are internal, personal outcomes, such as how the product makes you feel. For instance, using Nexxus shampoo might make you feel more (or less) stylish, and eating an ice cream cone from Baskin Robbins might make you feel happy. Consumers also may have knowledge about the social consequences of product use (My friends will like/respect/envy me if I buy this jacket on sale).

People’s affective and cognitive systems interpret these consequences of product use and form knowledge and beliefs about these functional and psychosocial consequence in memory. People’s affective systems may react to this knowledge as well. For instance, a consumer might experience positive feelings of pride and self esteem if other people comment favorably on a new sweater. At a later time, both affective and cognitive knowledge may be activated from memory and used in other interpretation or integration processes.

Consumers can think about the positive and negative consequences of product use as possible benefits or potential risks. Benefits are the desirable consequences consumers seek when buying and using products and brands (I want a car with fast acceleration; I want a car with good mileage). Consumers can have both cognitive knowledge about benefits and affective responses to benefits. Cognitive knowledge includes proportions linking the product to desired functional and psychosocial consequences (I want my stereo system to have excellent sound reproduction; If I wear that suit, people will notice me). Affective reactions to  benefits include positive affective responses associated with the desired consequences (I feel good when people notice me).

Consumers often think about products and brands as bundles of benefits rather than bundles of attributes (see Exhibit 4.2). Therefore marketers can divide consumers into subgroups or market segments according to their desires for certain product consequences, a process called benefit segmentation. For example, some consumers of toothpaste are seeking appearance benefits (whether teeth), whereas others are more interested in health benefits (preventing tooth decay).

Perceived risks concern the undesirable consequences that consumers want to avoid when they buy and use products. A variety negative consequences might occur. Some consumers worry about the physical risks of product consumtion (side effects of a cold remedy, injury on a bicycle, electric shock from a hair dryer). Other types of unpleasant consequences include financial risk (finding that the warranty doesn’t cover fixing your microwave oven; buying new athletic shoes and finding them on sale the next day), functional risks (An aspirin product doesn’t get rid of headaches very well; A motor oil additive doesn’t really reduce engine wear), and psychosocial risk (my friends might think these sunglasses look weird on me; I will feel confident wearing this suit). In sum, perceived risk includes consumers knowledge or beliefs about unfavorable consequences, including the negative affective responses associated with these unpleasant consequences (unfavorable evaluations, bad feelings and negative emotions).

The amount of perceived risk a consumer experiences is influenced by two things: (1) the degree of unpleasantness of the negative consequences and (2) the likelihood that these negative consequences wiil occur. In cases where consumers do not know about the potential for negative consequences (a side effect of a health remedy, a safety defect in a car), perceived risk will be low. In other cases, consumers may have unrealistic perceptions of product risks because they overestimate the likelihood of negative physical consequences. Highlight 4.2 describes some marketplace problems created by consumer’s misconceptions of risk.

In a purchase decision, consumers consider the benefits and risks of each choice alternative by integrating information about positive and negative consequences. Because consumers unlikely to purchase products with high perceived risk, marketers try to manage consumers perceptions of the negative consequences of product purchase and use. Land’s End a successful mail order company, tries to reduce consumers perceptions of financial and performance risk by offering an unconditional, money back if not satisfied guarantee. A different marketing strategy is to intentionally activate knowledge about product risk in order to show how using a particular brand avoids the negative consequences. For instance, Micron Computers ran advertising campaigns in the mid 1990s that were intended to generate doubt and anxiety among business executives by pointing out the negative consequences of not buying Micron computers getting fired, for instance (see www.micronpe.com). In an ad similar to “slice of death” commercials run years earlier by AT&T, a young executive is packing his office and reveals that he was fired because he did not select a Micron computer system.

Highlight 4.2

The Perception and Reality of Risk

Many American seem to believe consumer products should involve no risk and that attaining zero risk is possible. Yet as we reduce significant risks in our environments, consumers seem to become ever more anxious about the imagined hazards of modern life. People are confused about perceived risks of products, partly because several of the major “hazards” of recent years turned out to be false alarms or were greatly exaggerated.

The Alar scare of 1989 was an example. A series of news stories (including a televised segment on “60 minutes”) reported a study in which rats developed cancers when fed dosages of Alar (a growth hormone used on apple trees). Estimates of 200 to 900 deaths from cancer per million people created a great deal of publicity hysteria. People dumped apple juice down the drain and apple sales plummuted. Some hysterical consumersw even called the Environmental Protection Agency to ask if groundwater could be contaminated by discarded apple juice. Down the drain and apple sales plummeted. Some hysterical consumers even called the environmental protection agency to ask if ground water could be contaminated by discarded apple juice. The original study was discerdited when it was found that the rats were fed dosages of Alar over 200,000 times higher than human exposure levels. Studies were redone, and the recomputed risk estimates were found to be minuscule. In fact, because Alar makes apples bond to the tree more strongly, it reduces the need for stronger pesticides and therefore, might actually reduce the incidence of cancers.

A similar situation occurred in  1990 when Perrier (a French brand of mineral water) was discovered to contain minute amounts of benzene, a known carcinogen. The benzene was a natural ingredient in the carbon dioxide gas that baubles up in the springs in France. The benzene usually was removed by filters, but an employee had not changed the filter frequently enough. One problem in risk assessment is that our technologies foe measuring tiny quantities of harmful compounds in products outstrip our ability to make reasonable judgments about what to do  about it. The amount of benzene detected in Perrier was 19 parts per billion. Fifteen years earlier, that level of benzene concentration could not have been detected.

Did this make Perrier dangerous? It all depends on your perceptions of and tolerance for very small risks. The actual risks developing cancer from drinking Perrier were extremely small. One expert estimated the additional cancer risk from drinking 1 liter of the “contaminated” Perrier every day for 70 years as somewhere between 1 in 100,000 and in 1 in 10 million. This means that if every American drank 1 liter of Perrier a day every day of his or her life, the additional number of cancer deaths might be 200 or so per year. Of course, virtually no one consumes that much mineral water. Yet in the emotional climate of 1990, Perrier believed it had to throw away $40 million of essentially harmless product.

Product as Value Satisfies

Consumers also have knowledge about the personal, symbolic values that products and brands help them satisfy or achieve (Exhibit 4.2). Values are peoples broad life goals (I want to be successful; I need security). Values often involve the emotional affect associated with such goals and needs (the strong feelings and emotions that accompany success). Recognizing when a value has been satisfied or a basic life goal has been achieved is an internal event that is rather intangible and subjective (I feel secure; I am respected by others; I an successful). In contrast, functional and psychosocial consequences are more tangible and it is more obvious when they occur (People noticed when I wore that silk shirt).

Exhibit 4.3

Instrumental and Terminal Values

Instrumental Values (Preferred Models Behavior)

Terminal Values (Preferred End States of Being)

Competence: Ambitious (hardworking) Imaginative (creative) Capable (competent) Logical (rational) Courageous Compassion: Forgiving (pardon others) Helpful (work for others) Cheerful (joyful) Loving (affectionate) Sociality: Polite (courteous) Obedient (dutiful) Clean (neat, tidy) Integrity: Responsible (reliable) Honest (sincere) Self-controlled

Social harmony: World at peace Equality (brotherhood) Freedom (independence) National security Salvation (eternal life) Personal gratification: Social recognition Comfortable life Pleasure (enjoyable life) Sense of accomplishment Self-actualization: Beauty (nature and arts) Wisdom (understanding) Inner harmony (no-conflict) Self-respect (self-esteem) Sense of accomplishment Security: Taking care of family Salvation Love and affection: Mature love (sexual and spiritual Intimacy) True friendship (close companionship) Personal contentedness: Happiness (contentment)

Source: The values are from Milton J.Rokeach, The Nature of Human Values (New York: Free Press, 1973). The underlined category labels gor groupings of Rokeach’s values shown are identified by Donald E. Vinson, J. Michael Munson, and Masao Nakanishi, “An investigation of the Rokeach Value Survey for Consumer Research Applications, “in Advances in Consumer Research, vol.4, ed. W.D. Perreault (Atlanta, GA: Association  for Consumer Research, 1977), pp.247-52.

There are many ways to classify values. One useful scheme identifies two types or levels of values instrumental and terminal. Instrumental values are preferred modes of conduct. They are ways of behaving that have positive value for a person (having a good time, acting independent, showing self reliance). Terminal values on the other hand are preferred states of being or broad psychological states (happy at peace, successful). Both instrumental and terminal values (goals or needs) represent the most personal consequences people are trying to achieve it in their lives. Exhibit 4.3 lists some of the values held by Americans.

Certain Values called core values are central to people’s self concept their knowledge about them selves. These core values are the key elements in a self schema an associative network of interrelated knowledge about one’s self. Besides values, self schemas include knowledge of important life events (eposodic memories), knowledge of one’s own behavior, and beliefs and feelings about one’s body (body image). Consumers core values have a major influence on their cognitive processes and choice behaviors; therefore, they are of particular interest to marketers. For instance, the growing core value of protecting the environmental has created many new marketing opportunities. Thus in the 1990s, MC Donald changed from polystyrene shell containers for its hamburgers to quilted paper wrappers. Highlight 4.3 describes how Duracell responded to ethical and environmental issues associated with its batteries.

Because they represent important consequences that are personally relevant, values often are associated with strong affective responses. Satisfying a value usually elicits positive affect (happiness, joy, satisfaction), whereas blocking a value produces negative affect (frustration, anger, disappointment). For many people, buying their first car satisfies the values of independence and freedom and generates positive affective feelings of pride and satisfaction. On the other hand, your value of security is not satisfied (blocked) if your new bicycle new lock is broken by a thief, which could create substantial negative affect (anger, frustration, fear).

In summary consumers can have product knowledge about product attributes, consequences of product use and personal values. Most marketing research focuses one type of product knowledge usually attributes or consequences, where the usual focus is on benefits rather than risks. Values are examined  less frequently. The problem is that studying only one type knowledge gives marketers an incomplete understanding of consumers product knowledge. They miss the connections between attributes, consequences and values.

Means End Chains of Product Knowledge

Consumers can combine the three types of product knowledge to form a simple associative network called a means end chain. A means end chain is a knowledge structure that links consumers knowledge about product attributes with their knowledge about consequences and values. The means end perspective suggests that consumers think about product attributes subjectively in terms of personal consequences. (What is this attribute good for? What does this attribute do for me?) In other words, consumers see most product attributes as a means to some end. The end could be a consequence (a benefit or a risk) or a more abstract value.

A common representation of a means end chain has four levels:

Attributes

Functional Consequences

Psychosocial Consequences

Values

Highlight 4.3

Duracell Faces Ethical and Environmental Issues Regarding Batteries

How Duracell faced difficult ethical issues regarding the effects of its battery products on the environment gives an indication of the company’s ethical values and those of its owner, The Gillette Company.

For many years household batteries were routinely disposed of along with other household waste. In recent years, however concerns have been raised about the presence of mercury and its long term effects on municipal solid waste deposits. In response to these concerns, Duracell voluntarily eliminated all added mercury from its alkaline batteries, while still maintaining the long lasting features consumers wanted. In fact, Duracell was able to increase battery life by 70 percent and at the same time keep price increase to about 25 percent. Over an eight year period, Duracell eliminated mercury from its alkaline batteries in almost every market in the world a relatively short time for most environmental advances.

When it comes to packaging, Duracell seeks to apply the same principles of removing toxic materials and minimizing waste. They use nontoxic inks and make every effort to use recycled materials on battery packaging. In the United States, for instance, backing cards are made from 100 percent recycled materials versus about 30 percent for the plastic materials.

What about the collection and recycling of worn out batteries? Duracell recommends that consumers collect and recycle mercury, Ni-Cad (nicked cadmium), and sealed lead acid batteries separately. Those battery types contain significant amounts of mercury, cadmium and lead that can have adverse effects on the environment if not handled properly. According to Duracell, all otner batteries, including the common alkaline batteries, can be safely disposed of along with normal household waste. However, consumers should be careful when collecting, transporting and discarding these regular batteries because of safety concerns. Many discarded batteries are not completely “dead”, and bringing these “live”batteries into contact with each other can create a safety risk.

At this date, an environmentally and economically feasible recycling program has not been developed to handle the ordinary alkaline  batteries. Duracell is working with the battery industry to develop such a technology but, it is preferable to discard batteries with your normal household waste.

Source: For a discussion of how Duracell has responded to various environment and ethical issues, see their well designed web site at http://www.duracell.com. The Web site also provides a wealth of information about batteries, including the history of batteries, how batteries work, types of batteries and tips on proper battery use.

Exhibit 4.4 presents definitions of the four levels in the means end chain and gives examples of each level. Sometimes the distinction between the four levels can be a bit fuzzy. For instance, you might be uncertain whether “being with friends” is a psychosocial consequence or a value. Fortunately, marketers don’t have to worry about making such fine distinctions when using the means end chain model to develop marketing strategies. The main point of the means end chain model is that consumers think in terms of personal consequences. They create means end knowledge structures that link tangible products attributes to functional and psychosocial consequences and in turn more abstract and personal values and goals.

Because means end chains contain consumers personally relevant meanings for products and brands, they are unique to each consumers background and personal interests. Thus different consumers are likely to have different means end chains for the same product or brand, although there usually are some similarities. And we should not be surprised to find that consumers meanings for a product can be quite different from those of a marketing manager.

Exhibit 4.4

A Means End Chain Model of Consumers Product Knowledge

Level of Abstraction	Examples	Explanation
Values	Self-esteem Thrifty	Preferred and states of being and preferred modes of behavior
Psychosocial consequences	Others notice me I feel like a good shopper	Psychological (How do I feel?) and social (How do others feel about me?) consequences of product use.
Functional consequences	Excellent performance Durable	Immediate tangible consequences of product use. What does the product do? What functions does it perform?
Attributes	High price Good quality workmanship	Physical characteristics of product as well as more subjective, less tangible characteristics.

To summarize the means end chain model proposes that the meaning of a product attribute is given by its perceived consequences. Consider two physical attributes Gillette designed into its popular Sensor razor a spring suspension system and a lubricating strip. These product attributes probably don’t mean much to most consumers until they use the product and experience its consequence or else learn about them from advertising or from other consumers. Gillette advertising was designed to communicate key product benefits in hopes that consumers might form the following means end chains:

Brand	Attributes	Functional Consequences	Psychosocial Consequences	Values
Sensor razor	Spring suspension for twin, pivoting blades	Close Shave	Feel well groomed	Be attractive
Sensor razor	Lubricating Strip	Smooth, soft shave	Be comfortable	Relaxed, not stressed

Exhibit 4.5

Examples of Means End Chains

	Attributes	Functional Consequences	Psychosocial Consequences	Values
Hair spray (Product-class level)	Pump dispenser Unscented	Light mist, hair not tacky Natural odor	Feel more attractive I can be the real me	Impress others Self esteem
Flavored potato chips (Product-form level)	Bar-B-Q flavor High calories	Tastes good Gain weight	Guests enjoy themselves more Not attractive to others	Social recognition Low self esteem
Scope mouthwash (Brand level)	Sugarless Fluoride	Not fattening Stops cavities Avoid bad breath	Attractive to others Feel confident in social situations	Self esteem I perform better

Examples of Means End Chains

Exhibit 4.5 presents several means end chains that represent one consumers product knowledge for a product class (hair spray), a product form (flavored potato chips), and a brand (Scope mouthwash). This figure illustrates four important points about means end chains. First, actual means end chains vary considerably in the meanings they contain. Second, not every means end chain leads to a value. In fact, the end of a means end chain can be a consequence at any level of abstraction from a functional consequence (This toothpaste will give me fresh breath) to a psychosocial consequence (My friends will like being close tome) to an instrumental value (I will be clean) to a value (I will be happy). In cases where product attributes have no connections to consequences, consumers do not know what the attributes is good for, and it will probably have little effect on their behavior. Third, some of the means end chains in Exhibit 4.5 are incomplete, with “missing” levels of meanings. This illustrates that the actual product knowledge in consumers ‘means end chains does not necessarily chain model. Finally, although not shown in Exhibit 4.5, some product attributes may have multiple means end chains, and these can be conflicting. That is, some attributes can lead to both positive and negative ends. For example, consider the means end chains that may be associated with price. For a fairly expensive product such as a watch, higher prices may have both positive and negative consequences (perceived benefits and risks). Consumers may have difficulty making purchase decisions that involve such conflicting meanings.

Exhibit 4.6

Methods of Identifying Key Attributes Considered by Consumers

Direct elicitation

Researcher: “Please tell me what characteristics you usually consider when deciding which brand of ballpoint to buy.”

Consumer: “Let’s see. I think about the price, the color of the ink, the fineness of the tip, and how the pen feels in my hand.”

Free-sort task

Researcher: “Here are several brand of running shoes. Assume that you are thinking of buying a pair of running shoes. I want you to sort these brands into groups so that the shoes in each pile are alike in someway important to you and are different from the shoes in other piles.”or…

                     “Here are several brands of running shoes. I want you to sort them into groups using any basis you wish.”

                     “Now, please describe what each pile means to you. Why are these brands together? How are these shoes different from those other shoes?”

Consumer: “Well, these shoes are all high tech and expensive. Those are cheaper and have fewer fancy features. And these brands are in between.”

Triad task

Researcher: “Here are three brands of running shoes. Assume that you were thinking of buying a pair  of running shoes. In what important way are two of these similar and different from the third? Are there any other ways?”

Consumer: Hmmm. Well these two shoes have special construction features to keep your heel stable and solid. This one doesn’t. And these two have a staggered lacing system, while this one has a traditional lacing pattern.”

Measuring Means End Chains

Measuring Means End Chains is best accomplished with one on one, personal interviews in which the researcher tries to understand a consumer’s meanings for product attributes and consequences. The process involves two basic steps. First, the researcher must identify or elicit the product attributes that are most important to each consumer when he or she makes a purchase decision. Exhibit 4.6 describes three ways of identifying the most relevant attributes. The second step is an interview process called laddering intended to reveal how the consumer links product attributes to more abstract consequences and values.

For each important attribute, the researcher asks the consumer a series of questions in the format of “why is that important to you?” Exhibit 4.7 shows an example of a laddering interview. By identifying the connections between product attributes, consequences, and values in the consumers means end claims, laddering helps managers understand what product attributes  mean to the consumer. Based on the consumer insights gained from the means end chains, marketing managers can develop more effective marketing strategies.

Exhibit 4.7

Example of a Laddering Interview

Researcher: “You said that the lacing pattern in a running shoe is important to you in deciding what brand to buy. What is that?’

Consumer: “A staggered lacing pattern makes the shoe fit more snugly on my foot.”[physical attribute and functional consequence].

Researcher: “Why is it important that the shoe fit more snugly on your foot?’

Consumer: “Because it gives me better support.”[functional consequence]

Researcher: “Why is it important for you not worry while running?”

Consumer: “So I can Relax and enjoy the run.”[psychosocial consequence]

Researcher: “Why is it important that you can relax and enjoy the run?”

Consumer: “Because it gets rid of tension I have built up at work. “[psychosocial consequence]

Researcher: “Why is it important for you to get rid of tension from work?”

Consumer: “So when I go back to work in the afternoon, I can perform better.”[value high performance]

Researcher: “Why is it important that you perform better?”

Consumer: “I feel better about myself.”[value self esteem]

Researcher: “Why is it important that you feel better about yourself?”

Consumer: “it just is”[the end]

Marketing Implications

A basic advantage of means end chain models is that they provide a deeper understanding of consumers product knowledge than methods focusing only on attributes or benefits. For instance, consider the following means end chain for Liquid Tide laundry detergent.

Special chemical formulation

Extra cleaning power

My kids have cleaner clothes

Iam a good parent

Self esteem

This hypothetical consumer interprets the chemical attributes of Liquid Tide (special molecules) in terms of the more abstract attribute “cleaning power.” Cleaning power, in turn, is seen as providing the functional benefit of “cleaner clothes for the kids,” which is seen as helping to achieve the instrumental value of “being a good parent,”which finally leads to the terminal value of “feeling good about myself”or”self-esteem.”

By identifying the sequence of connection between product related meanings at different levels of abstraction, marketers can see more clearly what consumers really mean when they mention an attribute  or a consequence such as “cleaning power”. Means end chain analyses also identify the basic ends (values and goals) consumers are seeking when they buy and use certain products and brands, and this gives insight into consumers purchase motivations. Finally means end chains reflect the consumer product relationship that is, they show how consumers relate product attributes to important aspects of their self concepts. In sum, the more complete understanding of consumers product knowledge provided by means end analysis helps marketers devise more effective advertising, pricing, distribution and product strategies.

Highlight 4.4

Coca-cola Learns about Consumer Involvement

In the spring 0f 1985, the coca-cola company shocked American consumers and other soft drink manufactureres by announcing that the 99 year old formula for coke would be changed. The “new” was a bit sweater, and marketing research showed it was preferred to Pepsi-Cola. The original Coke formula was to be retired to a bank vault and never again produced.

What happened then was the beginning of Coke’s lesson in consumer involvement. Outraged U.S. consumers complained bitterly to the Atlanta based company about the loss of “a great American tradition.”In Seattle, a group of strident loyalists calling themselves “Old Coke Drinkers of America” laid plans to file a class action suit against Coca-cola. They searched out shop owners, vending machine owners and others willing to claim that the company’s formula change had cost them business. Then, when June sales didn’t pick up as expected, the bottlers also joined in the demand for old Coke’s return and fast.

Although Coca-cola had spent some $4 million in testing the new formula, it had missed one important factor. Millions of consumers had strong emotional involvement with the original Coke. They drank it as kids, and still did as adults. Many consumers had a personal attachment to Coke. Says a coke spokesperson, “We had taken away a little part of them and their past. They [consumers] said, You have no right to do that. Bring it back.”

Coca-cola had learned a costly lesson. Although consumers preferred the new taste in blind taste tests, Coca-cola did not measure consumers emotional reactions to removing the original Coke from the marketplace. Coca-cola learned that a product is more than a production formula; extra meanings such as emotions and strong connections to self image may also be present.

Source: Adapted from Anne B.Fisher, “Coke’s Brand Loyalty Lesson,”Fortune, August 5, 1985, pp.44-46.

Sometimes companies begin with a desirable functional consequence that will appeal to many consumers, and have to learn what attributes produce the desired outcome. Removing plaque on teeth is a desirable functional consequence, but how does one do it? Through its research, Gillette (marketers of Oral B toothbrushes, the number one bran in the United States) learned the regular brushing did little to remove plaque from teeth. However, when a tooth bbrush reveres itself suddenly its bristles are “thrown out” a bit and this action can dislodge bits of plaque. In partnership with Braum, a German appliance company they own, Gillette developed an oscillating electronic toot brush that easily produced such a motion. They generated sales of $700 million in 1996.

Involvement

Why do consumers seem to care about some products and brands and not others? Why are consumers sometimes highly motivated to seek information about products, or to buy and use products in certain situations, while other consumers seem to have no interest? Why did some loyal coke drinkers make such a big fuss when in 1985 Coca-cola Company managers made a minor change in an inexpensive, simple and seemingly unimportant soft drink product (see Highlight 4.4)? These questions concern consumers involvement, a key concept for understanding consumer behavior.

Involvement refers to consumers perceptions of importance or personal relevance for an object, event, or activity. Consumers who perceive that a product has personally relevant consequences are said to be involved with the product and to have a personal relationship with it. Involvement with a product or brand has both cognitive and affective aspects. Cognitively, involvement includes means end knowledge about important consequences produced by using the product (This CD would be fun to play at parties). Involvement also includes affect such as product evaluations (I like the “Dave Letterman Show”). If product involvement is high, people may experience stronger affective responses such as emotions and strong feelings (I really love my mazda). Although marketers often treat consumers product involvement as either high or low, involvement actually can vary from low levels (little or no perceived relevance) to moderate (some perceived relevance) to high levels (great perceived relevance).

Involvement is a motivational state that energizes and direct consumers cognitive processes and behaviors as they make decisions. For instance, consumers who are involved with cameras are motivated to work harder at choosing which brand to buy. They might spend more time and effort shopping for cameras (visiting more stores, talking to more salespeople). They might interpret more product information in the environment  (read more ads and brochures). And they might spend more time and effort in integrating this product  information to evaluate brands and make a purchase choice.

Some researchers have used the term felt involvement to emphasize that involvement is a psychological state that is experienced by consumers only at certain times and occasions. Consumers do not continually experience feelings of involvement, even for important products such as a car, a home or special hobby equipment. Rather, people feel involved with such products only on certain occasions when means end knowledge about the personal relevance of products is activated. As circumstance change, that means end knowledge is no longer activated and peoples feelings of involvement fade away (until another time).

Focus of Involvement

Marketers are most interested in understanding consumers involvement with products and brands. But people also may be involved with other types of physical objects such as advertisements. During 1990s, some people became involved with a series of ads for Testers Choice coffee that portrayed flirtatious situations between a man and a women. Consumers may be involved with other people friends, relatives, lovers, perhaps even salespeople. People can also become involved with certain environments (their homes or backyards, amusement parks, the mountains or the seashore). Some of these may be marketing environments a clothing store the consumer especially likes, a shopping mall, or a favorite restaurant. Finally people may be involved with specific attributes or behaviors such as playing tennis, working, wind surfing, or reading. Some consumers become involved with marketing related activities such as collecting coupons, shopping for new clothes, finding the cheapest price in town, or bargaining with vendors at flea markets.

It is important that marketers clearly identify the focus of consumers involvement. Marketers need to know exactly what it is that consumers consider to be personally relevant: a product or brand, an object, a behavior, an event, a situation, an environment, or several of these together. Since marketers are mostly interested in consumers involvement with products and brands, this is our main focus in this chapter. In principle, however, marketers can analyze consumers involvement with virtually anything.

The Means End Basis for Involvement

Means End chains can help marketers understand consumers product involvement because they show how knowledge about product attributes is related to knowledge about self.

Product Knowledge	Self Knowledge
Attributes Functional consequences	Psychosocial consequences Values

The level of product involvement a consumer experiences during decision making is determined by the type of means of knowledge activated in the situation. A consumers level of involvement of self relevance depends on two aspects of the means end chain that are activated: (1) the importance

Or self relevance of the ends and (2) the strength connection between the product knowledge level and the self knowledge level. Consumers who believe that product attributes are strongly linked to important end goals or values will feel higher levels of involvement with the product. In contrast, consumers who believe that product attributes lead only to functional consequences, or that product attributes are only weakly linked to important values, will experience lower levels of product involvement. Consumers who believe the product attributes are not associated with any relevant consequences will experience little or no involvement with the product. We suspect that in the typical purchase decision, most consumers experience low to moderate levels of involvement for most products and brands.

The affective system is likely to respond the means end knowledge that is activated in a decision situation. This affect could vary from from weak evaluations with little arousal (if relatively unimportant consequences are linked to the product) to highly charged affect such as emotions and strong feelings (when core values are related to the product).

Factors Influencing Involvement

Exhibit 4.8 shows that a person’s level of involvement is influenced by two sources of self relevance intrinsic and traditional. Each sources can activate or generate means end chains linking product attribute knowledge to personally relevant consequences and values.

Intrensic self relevance is based on consumers means end knowledge stored in memory. Consumers acquire this means end knowledge through their past experiences with a product. As they use a product (or observe others using it), consumers learn that certain product attributes have consequences that help achieve important goals and values. For example, a consumer may learn that various attributes of a stereo system (surround sound, remote control, program ability) have favorable and unfavorable consequences (impress my friends, I can be comfortable and relaxed, to much trouble to use). Because this means end knowledge is stored in memory, it is a potential intrinsic source of involvement. If this knowledge is activated say in a decision situation the consumer will experience feelings of personal relevance or involvement.

Exhibit 4.8

A Basic Model of Consumer Product Involvement

Consumer Characteristics         Self concept-basic values, goals, needs.         Personality traits.         Expertise	Intrinsic Self Relevance
Product Characteristics        Time commitment         Price         Symbolic meanings         Potential for harm         Potential for poor performance		Involvement: Activate responses and activated knowledge about attributes, consequences and values	Interpretation and Integration processes
Situational Context        Purchase situation        Intended use situation        Time pressure        Social environment        Physical environment	Situational Self Relevance

Sources: Adapted from Richard L.Ceisi and Jerry C.Olson, “The Role of Involvement in Attention and Comprehension Processes,”Journal of Consumer Research, September 1988,pp.210-24; and Peter H.Bloch and Marsha L.Richins, “A Theoretical Model for the Study of Product Importance Perceptions,”Journal of Marketing, summer 1983, pp.69-81.

Exhibit 4.8 shows that intrinsic self relevance is a function of both consumer and product characteristics, as is all means end knowledge. Key consumer characteristic include people’s values and life goals. Relevant product characteristics are the product attributes and the associated functional consequences (benefits and perceived risks). Perceived risks are important elements in product involvement, because consumers tend to feel more involved with products that might have serious negative consequences. Other product factors that may influence intrinsic sources of involvement include visibility (Do people know you own the product?) and time commitment (Buying a refrigerator is involving because you are committed to your choice for a long time).

Situational self relevance is determined by aspects of the immediate physical and social environment that activate important consequences and values, thus making products and brands seem self relevant. For instance, a “50% Off” sign on fishing rods might activate self relevant thoughts in a person interested in fishing (I can get a good deal on a new rod). Because many environmental factors change over time, situational self relevance usually activates temporary means end linkages between a product and important consequences or values. These connections between the product and personal consequences may disappear when situation changes. For example, the person’s involvement with buying with this particular fishing rod might last only as long as the sale continues.

Aspects of the social environment can create situational self relevance. For instance, shopping with others can make some consumers more self conscious than shopping alone (I want to impress my friends with my sense of style). A chance observation in the physical environment, such as noticing a window display in a clothing store, might activate means end knowledge about consequences that become associated with the clothing in the display (That sweater would be good to wear to the party next week). More general aspects of the physical environment can also influence situational self relevance. The high temperatures on a summer day can make certain consequences more personally relevant and desirable (I need to take a break, cool off or relax). In turn, this makes buying an ice cream cone or going to an air conditioned movie theater more relevant and involving.

Exhibit 4.8 shows that consumers overall level of involvement is always determined by a combination of intrinsic and situational self relevance. Although intrinsic factors have the most influence on involvement can have a major influence in many circumstances. Consider the common situation when a consumer’s intrinsic self relevance for a product is low (The product is not very important to one’s self concept). For instance, most people do not consider hot water heaters to have much self relevance. But if yours develops a leak, it becomes quite important to replace it quickly. The negative consequences of showering and washing in cold water are highly self relevant. This means end knowledge (which is activated only when your old water heater breaks) is a situational source of self relevance with choosing and buying a new hot water heater as quickly as possible. You are likely to experience this involvement and motivation only for the short time it takes to evaluate a few alternative and make a quick purchase choice. 

This example shows that marketers need to understand both the focus of consumers involvement and the sources that create it. Even though most consumers are not personally involved with mundane products such as hot water heaters, they can become temporarily involved with the process of buying the product. Having to replace a broken water heater (a situational source of involvement) makes people think about particular consequences of purchase that are important to them (paying money, the time and effort it takes to shop, the stress and hassle). The purchase situation also might activate product knowledge that is important during decision making (purchase price, speed of delivery, ease of installation) but is not relevant later, when the product is being used. Involvement declines after the purchase, because most of the involvement consumers experienced concerned the decision process, not the product itself.

This is not an isolated or rare example. Situational self relevance always combines with consumers intrinsic self relevance to create the level of involvement consumers actually experience during decision making. This means that consumers usually experience some level of involvement when making purchase choices, even for relatively unimportant products. Even though intrinsic sources of involvement consumers feel. This suggests that marketers can influence consumers product involvement by manipulating aspects of the environment that might function as sources of situational self relevance.

Marketing Implication

The means end approach to product knowledge and involvement can help marketers understand the critical consumer product relationship and develop more effective marketing strategies is to enhance consumers product involvement by connecting products and services to consumer goals and values.

Understanding the Key Reasons for Purchase

Marketers can use means end analyses to identify the key attributes and consequences underlying a product purchase decision and to understand the meaning of those concepts to consumers. Restaurant decisions are a good example, unlike people in cultures such as France, many Americans are not highly involved with food. The fast food industry’s research suggest that the three most important factors in many consumers decisions on where to eat are (1) time of day, (2) how long the customer wants to spend eating and (3)price. According to one expert, “We used to eat when the food was ready. Now we eat when we are ready. “Often, speed and convinience are critical consequence, not the food itself.

Rally’s a small restaurant chain of over 400 restaurants, has developed marketing strategies to provide these desired consequences. The typical Rally’s is small enough to be placed anywhere. A Rally’s can be built for about $350,000 compared to more than $1 million for the averange McDonalds. Rally’s offers no customer seating. Food is ordered at walk up or drive through windows and eaten elsewhere. The drive through line at a Rally’s restaurant moves so rapidly many customers are in their way within 45 seconds! Moreover, they pay only about $2.00 for a fully dressed burger, french fries, and a large Coke, about 85 cents less than the nearly McDonalds would charge. And the food? Actually, the food itself is not that important for many consumers. As one Rally’s customer admitted, “The food is not very good here, but it’s cheap, quick and easy.”By understanding what attributes and consequences customers reallr want, Rally’s doubled sales and trebled profits from 1989 to 1990, whereas several competitors experienced stagnant growth or decline. For example annual sales at an averange Rally’s ran about $1,300 per square foot compared to $400 at McDonalds. 

Understanding the Consumer Product Relationship

One of the most important concepts in this book concerns consumers’relationships with products and brands. For instance, many American are highly involved with their autos, often treating them like pets (stroking, petting, grooming). For some consumers, the product self relationship reflects a passionate level of intrinsic self relevance. Such people love their cars and may engage in ritual forms of “worship” such as weekend cleaning and waxing. Marketers need to understand the cognitive and affective aspects of these consumer product relationships. For instance, teenagers who are”into” cars may link the general attributes of cars to important self relevant consequences (self respect, envy of peers, freedom). A key task for marketing management is to manage the customer product relationship. Marketing strategies should be designed to create and maintain meaningful consumer product relationships and modify those means end relationships that are not optimal

If marketers can understand the consumer product relationship, they may be able to segment the market in terms of consumers intrinsic relevance. For instance, some consumers may have positive means end knowledge about both the product category and a brand. Highlight 4.5 gives examples of the varying levels of brand loyalty in different product categories.

Researchers have identified four market segments with different levels of intrinsic self relevance for a product category and brand. Those with the strongest feelings are brand  loyalist and routine brand buyers.

Researchers have identified four market segments with different levels of intrinsic self relevance for a product category and brand. Those with the strongest feelings are brand  loyalist and routine brand buyers.

·         Brand loyalists have strong affective ties to one favorite brand that they regularly buy. In addition, they perceive that the product category in general provides personally relevant consequences. Their intrinsic self-relevance includes positive means end knowledge about both the brand and the product category and leads them to experience high levels of involvement during decision making. They strive to buy the “best” brand for their needs. For instance, consumers often have strong brand loyalty for sports equipment such as tennis racquets or athletic shoes.

·         Routine brand buyers have low intrinsic self relevance for the product category, but they do have a favorite brand that they buy regularly (little brand switching). For the most part, their intrinsic self relevance with a brands is not based on knowledge about the means end consequences of product attributes. Instead, these consumers are interested in other types of consequences of product attributes. Instead, these consumers are interested in other types of consequences associated with regular brand purchase (it’s easier to buy Colgate each time I need toothpaste). These beliefs can lead to consistent purchase, but these consumers are not so interested in getting the “best”brand;a satisfactory one will do.

The other two segments have weaker levels of intrinsic self relevance for a particular brand. Information seekers and brand switchers do not have especially positive means end knowledge about a single, favorite brand.

Highlight 4.5

Consumer’s Relationships with Brands

Faithful or Fickle?

Percentage of users of these products who are loyal to one brand

Cigarettes = 71%

Mayonnaise = 65%

Toothpaste = 61%

Coffee = 58%

Headache remedy = 56%

Film = 56%

Bath Soap = 53%

Ketchup = 51%

Laundry detergent = 48%

Beer = 48%

Automobile = 47%

Perfume /after shave = 46%

Pet food = 45%

Shampoo = 44%

Soft drink = 44%

Tuna fish = 44%

Gasoline = 39%

Underwear = 36%

Television = 35%

Tires = 33%

Blue jeans = 33%

Batteries = 29%

Athletic shoes = 27%

Canned vegetables = 25%

Garbage bags= 23%

Brand loyalty among consumers is a highly desirable goal for most marketers. Although brand loyalty seems to have eroded considerably over the past 30 years because of increased brand competition and extensive sales promotions (coupons and price reductions), it is not dead. A survey of some 2,000 customers found wide variations in brand loyalty across product classes (people who claimed to buy mostly the same brand).

Sources: Ronald Alsop, “Brand Loyalty is Rarely Blind Loyalty, “The Wall Street Journal, October 19, 1989, pp. B1,B8. Reprinted by permission of the Wall Street Journal, ©1989 Dow Jones & Company, Inc. All Rights Reserved Worldwide.

·         Information seekers have positive means end knowledge about the product category, but no particular brand stands out as superior (you may be “into” skis, but you know many ski brands are good choices). These consumers use a lot of information to find a “good” brand. Over time they tend to buy a variety of brands in the product category.

·         Brand switchers have low intrinsic self relevance for both the brand and the product category. They do not see that the brand or the product category provides important consequences, and they have no interest in anything “the best”. They have no special relationship with either the product category or specific brands. Such consumers tend to respond to environmental factors such as price deals or other short-term promotions that acts as situational sources of involvement.

In sum, different marketing strategies are necessary to address the unique types of product, knowledge, intrinsic self relevance, and involvement of consumers in these four market segments.

Influencing Intrinsic Self Relevance

If marketers can understand the means end knowledge that the makes up consumers intrinsic self-relevance, they are better able to design product attributes that consumers will connect to important consequences and values. A good example is Gillete’s design of the Sensor razor (mentioned at the beginning of the chapter). Marketers also can try to strengthen consumers intrinsic se3lf relevance for a given brand. Mazda once asked owners of Mazda czars to send in pictures of themselves with their cars and some of these pictures were included in national magazine ads. This promotion was likely to activate and strengthen the intrinsic self relevance of Mazda owners for their cars.

In the short run, it is different to modify consumers intrinsic self relevance for a product or brand. Over longer periods, through, consumers means end knowledge can be influenced by various marketing strategies, including advertising. The out come of this process is not completely predictable because many factors besides marketing strategy can modify consumers means end knowledge. For instance, the direct experience of using a product or brand can have a strong impact on means end knowledge. If the actual product experience doesn’t measure up to the image created by advertising, consumers are not likely to form the desired means end meanings.

Influencing Situational Self Relevance

Marketers use many strategies to create, modify or maintain consumers situational self relevance, usually with the goal of encouraging a purchase. Semiannual clearance sales on summer winter clothing are situational factors that may temporarily raise consumers involvement with buying such products. Likewise, premiums such as stickers or small toys in cereal boxes or candy packages may temporarily increase children’s involvement with a brand. Special pricing strategies, including rebates on new car models (“get $1,000 back if you buy in the next two weeks”), may function as situational influences that create a temporary increase in involvement with buying the product.

Another source of situational self-relevance is to link a product to a social cause. For instance, American Express once donated I cent from every purchase made with its card to refurbish the Statue of Liberty. In addition to making a total contribution of $1.7 million, American Express reaped lots of publicity and some new card applications. As other examples, Johnson & Johnson promotes Shelter Aid, a program that makes donations to shelters for battered women, while Avon Products sponsors a program in which its 415,000 U.S. Avon Ladies distribute 15 million brochures about breast cancer. Finally, if you buy enough wieners and bologna, Oscar Mayer will donate bats, uniforms and scoreboards to kids baseball teams.

Back to Gillette

Understanding consumers product knowledge and consumer product relationships requires that marketers examine the meanings by which consumers represent product attributes and link those to higher ordered meanings, such as psychosocial consequences and values in consumers self schema. A major reason for Gillette’s successes was its ability to develop products with superior product attributes that consumers perceived as linked to important, self relevant psychosocial consequences and perhaps even values.

In this chapter we considered the means end chains consumers might have formed for the Gillette Sensor razor mentioned in the case. As another example, the wide ribbed handle on the Sensor for Women makes it easier to hold and control the razor, which leads to smoother, closer shave with fewer cuts. In turn, women might feel more attractive, which gives them greater confidence in social situations and finally adds to their self esteem. Companies like Gillette should identify and promote the desirable higher ordered consequences linked  to their product attributes (and avoid attributes having negative consequences).

The means end perspective is also useful for understanding consumers intrinsic self relevance for products and brands. It is likely that most consumers do not have intense levels of intrinsic self relevance for any these Gillette products. However, certain market segments of consumers probably believe these products have a moderate degree of intrinsic self relevance. For example, because teens just beginning to shave might have higher levels of intrinsic self relevance for razors and related products than do consumers in other market segments, they probably experience higher levels of involvement during purchase decision processes. Gillette might create special marketing strategies for such consumers.

Summary

In this chapter you learned more about consumers affective and cognitive responses to products. Consumers don’t buy products to get attributes; rather they think about products in terms of their desirable and undesirable consequences benefits and perceived risks. By relating product attributes to their own personal and self relevant consequences, values, goals and needs, consumers form knowledge structures called means end chains. The attributes of some products are strongly linked to important (consequences and values), whereas other products are only weakly associated with self relevant consequences. These are sometimes called high and low involvement products, respectively. Consumers experience involvement as cognitive perceptions of importance and interest and affective feelings of arousal. Their feelings of involvement are determined by intrinsic self relevance the means end knowledge stored in memory. In addition, situational factors in the environment also influence the content of activated means end chains and thereby affect the involvement consumers experience when choosing which products and brands to buy.

   

Key Terms and Concepts

Attribuites 68                                      means end chain 73

Benefits 69                                          perceived risks 70

Functional consequences 69               psychosocial consequences 69

Intrinsic self relevance 81                   situational self relevance 83

Involvement 79                                   values 71

Levels of product knowledge 64

Review and Discussion Questions

   1.      Select a product categtory and identify examples of product forms, brands and models. Describe some of the attribute, consequence and value meanings for each of these levels.

  2.     Analyze the possible meanings of mouthwash or deodorant in terms of positive (perceived benefits) and negative (perceived risks) consequences of use. Why are both types of meaning important?

  3.      The Procter & Gamble Company is one of the most admired marketing companies in the United States. P&G is known as an innovator of high quality products with superior product attributes. Go to the P&G Web site at http://www.pg.com/docYourhome/news_releases/ and checkout the new products ideas they are researching. Choose a new product and identify the key elements in the means end chain that P&G seems to have “designed into” the product. For instance, at this writing, P&G is testing a new modeel of Crest tooth-paste, called MultiCare.  A P&G spokesperson says,”In our research, consumers rated this the best Crest ever. Crest MultiCare delivers great protection and the feeling it creates in your mouth, both during and after brushing, is really terrific.”Crest MultiCare has a special foaming formula that delivers proven Crest protection against Tartar and Cavities and the acids that cause them, even in places that are hard to reach. Consumers also said that Crest MultiCare tastes great, freshens their breath and leaves their mouths feeling clean long after brushing. (The main P&G web site is http://www.pg.com. Explore the about P&G button for an overview of this interesting and innovative company.)

  4.      Define the concept of involvement and illustrate it by discussing products that, for you, would fall at various levels along an involvement continuum.

   5.      Consider the difference between consequences of possession and consequences of consumption as the basis for intrinsic self relevance. What products are relevant to you for these two reasons? How does that change your purchasing behavior?

   6.      Do you agree that most products have low to moderate levels of intrinsic self-relevance for most consumers? Why or why not?

   7.      Prepare one or two means end chains for your choice of a major or an emphasis in marketing as part of your degree program. Do laddering of yourself to identify your means end chains (see exhibit 4.7). Label the attributes, consequences and values that you identify.

  8.      Using the concept of means and chains, discuss why different people might shop for athletic shoes at department stores, specialty athletic footwear shops, and discount stores. Why might the same consumer shop these stores on different occasions?

  9.      Discuss how a marketer of casual clothing for men and women can use consumers product knowledge (means end chains) and involvement to understand the consumer product relationship.

  10.  Identify three ways that marketers can influence consumers situational self relevance and discuss how this will affect consumers overall level of involvement. For what types of products are these strategies most suitable?

  Marketing Strategy in Action

  Nike

  Twenty five years ago, Nike stuck its foot in the door sports by providing better shoes for competitive athletes, Simple. All it look was a passion for sports, a few good ideas and the will to make it happen. Today, much in the world has changed. Athletes are stronger and faster than ever. Competition is more intense than any time in history. When combined with advances in performance that technology can provide, the world frenzy for sports grows unabated.

  Twenty five years from now, no one knows what the world will be like. But we’re thinking about it. We believe in it. We know that curiosity and a competitive spirit will be alive and well. We know that will be there, helping athletes perform better. All it will take is a passion for sports, a few good ideas, and the will to make it happen. Over and over again.

   With these words, Nike began its 1997 Annual Report and revealed the core values of this highly successful company. It all began in the early 1960s, when Philip Knight, CEO of Nike and former track star at the University of Oregon, was a student at Stanford University. Knight wrote a paper on how Japanese labor could be used to create a cheaper and better running shoe. Later, on a trip to Japan, he discovered the Tiger Company which made high quality running shoes. So Knight teamed up with his old track coach William Bowerman in 1964. Each kicked in $500 to import Tigers, which Knight sold from his car at high school track meets. Worried that Tiger would find a more established distributor, bowerman and knight developed their own brand, Nike, named after the Greek winged goddess of victory. (A student at Portland State designed the now famous “swoosh” symbol for which she received a $35 fee). The soles of the nearly shoes were modeled after the pattern on a waffle iron in Bowerman’s kitchen that caught his eye. In 1972, Nike began designing its own shoes and contracting production to Asian manufacturing shops, a practice it still follows. The young company was perfectly timed to cash in on America’s running craze in the 1970s. It sold $3 million in shoes in 1972, $270 million in 1980 and $1 billion in 1986.

It has not been all easy running for Nike. After its initial success in the 1970s, the company stumbled a bit in the mid 1980s. For one thing, demographic changes worked against Nike as the baby boomers pushed into their forties and felt less like running. Fewer new people were taking up jogging and those who did were doing fewer laps. Also the market for running shoes had become highly segmented a sure sign of a mature market with many different models for every nuance of consumer need. In addition, price cutting was beginning to show its ugly head. Thus, Nikes unit sales of running shoes decreased 17 percent in 1984, and its market share declined in that year from 31 percent to 26 percent. The decline continued so that by 1987 Nike had only an 18.6 percent share of the market for  athletic shoes a market it had dominated just a few years earlier.

Another problem for Nike came along in the 1980s competition. Reebok, in particular created a new marketing or4ientation to selling sneakers based on fashion, not performance as Nike had emphasized (and still does). According to Reebok president Paul Firemanj. “We go out to consumers and find out what they want. Other companies don’t seem to do that. “Fashion seemed to be what many consumers wanted in the mid 1980s. Reebok’s soft leather athletic shoes in fashion colors  tock the market by storm. Reebok sales increased from $84 million to $307 million in one year (1984 to 1985) and reebok took over the spot from Nike in 1986. Perhaps consumers interest in fashion should have been obvious by simple observation. Research showed that 70 to 80 percent of the shoes designed for basketball and aerobic exercise were actually used for causal street wear instead of the intended sports.

Nike fought back with technological features intended to enhance performance. In 1987 Nike introduced air inserts into the soles of its high end shoes. The key model was the Air Jordan, the basketball shoe named after Michael Jordan the superstar player for the Chicago Bulls. Nike also had the brilliant idea of producing its top of the line models with a cutout in the sole so that the consumer could actually see the attribute (encapsulated gas or “air”) that provided the cushioning benefit. Over the years, a key strategy for Nike has been to create shoes with special technical attributes (air inserts, stability reinforcement, lacing patterns) that would enhance performance. Knight also signed up star athletes to wear Nike shoes and serve as spokespersons, a strategy he used from the beginning. The most desirable spokesperson was what the company executive called “a Nike guy” a briliant athlete with a competitive attitude and a somewhat rebellious demeanor. Michael Jordan became the Nike guy of the late 1980s. Nike spent very heavily on TV and print advertising to promote both Jordan and his shoe modal. All this advertising was a rather unusual marketing strategy for the company that once eschewed mass advertising as unnecessary and somewhat demeaning, but the threat from Reebok loosened Knights thinking about advertising. In the mid 1990s, some 35 ads later, Michael Jordan was the most popular athlete in the country.

Currently, Nike pays out an estimated $100 million a year to contract athletes to use and pitch Nike products. Nike spokespersons have included Andre Aggassi in tennis, Nolan Ryan in baseball, Carl Lew’s and Alberto Salazar in track, Bo Jackson for multisport shoes and many basketball players including Charles Barkley and Scottie Pippen. Nike adds new sports continuously, including mountain biking, climbing and hiking at this writing big name signings included Anfernee “Penny” Hardway, who has his own Penny Air shoe and young golfing sensation, Tiger woods who received an estimated $40 million for his endorsement services. In the 1990s, Nike got deeply into women sports and the shoes that go with them. As usual, Nike signed up women sports stars to wear and promote its products (the Nike Web site profiles several prominent female athletes such as Tiffeny Milbrett stand out soccer player in Japan). Nike’s print ads portrayed women striving to excel in sports. A Nike ad in 1996 showed little girls imploring their parents for a ball not a goal for Christmas.

The opening statement in 1997 Annual Report indicates Nike’s commitment to sports. As a compan, Nike is fascinated by the dedication and effort it takes to excel in sports and the satisfaction such achievement provides the athlete. Thus, Nike “goes  beyond” a concern with mere product attributes to focus on the personal benefits associated with using its products and the values satisfied by product use. Nike’s advertising is designed “to make a connection”with the consumer, according to Dan Wieden, manager of Wieden & Kennedy, Nike’s main advertising agency. Thus, Nike ads seldom pitch the product directly a talk about product attributes. In fact, Nike ads often do not mention the company name. consumers know the brand name and the corporate symbol so well that advertising only has to show the familiar swoosh symbol for people to understand it. Most Nike ads seek to portray the core values os sports as Knight sees them (striving, effort, achievement, satisfaction). Most Nike ads activate these meanings and their associated emotions and moods, which then become linked to the product. Thus for many consumers, Nike has an image that stands for performance, competition, achievement and doing your personal best.

Essentially Philip Kinght has taken a simple sneaker and created a status symbol. In the decade or so since the dark days of the 1980s, Nike has become one of the most powerful br4and names in the world, in a category with Coke, Levis, Disney and Hallmark. Sales have continued to grow until  by 1996 worldwide shoe sales reached $6.5 billion (44 market share ) plus another $1 billion in sales of clothing and related Nike products. Corporate profits topped $550 million. In contrast, Reebok (now in second place in the United States) had 1996 sales of $3.6 billion and profits of $145 million. Of course Nike has many viable competitors besides Reebok to worry about, including Adidas, Fila and Converse. We can be sure the sneaker wars will continue.

Discussion Questions

  1.      Apparently there are two market segments of consumers for many products forms of athletic shoes those who use the shoes to engage in the designed athletic activity and those who primarily use the shoes for casual wear and seldom engage in the athletic activity.

a.       Discuss the differences between these two segments in means end chains and especially and goals, needs and values for running, basketball, aeorobics, or tennis shoes.

b.      Draw means end chains to illustrate your ideas about how these two segments differ.

c.       What types of special difficulties does a marketer face in promoting its products to two market segments of consumers who use the product in very different ways?

  2.      A large sucessful company can expect to receive its share of criticism. In the mid 1990s, Nike received considerable criticism for producing its products in Asian factories characterized as paying low wages and forcing workers to labor in poor working conditions. Nike denied these criticsms, and hired a Washington, D.C., consulting firm, Good Works Internasional, to conduct an unbiased audit of its foreign partner firms. The report by Andrew Young past ambassador of the United Nations, found that Nike was doing “pretty well” but it could do better. Philip Knight promised to follow the several recommendations in the report. Read the report and the Nike response for your self at http;//info.nike.com/. What do you think Nike’s ethical responsibilities are in this situation? Critique its response to the young report.

  3.      Over the years, Nike has expanded its product line well beyond the original shoes. Its line now includes models for aerobic dancing, walking and court shoes and for tennis, cross training, soccer, baseball, football and more. In the 1990s, Nike added hiking boots, mountain biking shoes, and other specialty shoe types. Nike even offers casual leather shoes in its lineup. Check out the Nike Web site (www.nike.com) for a complete listing of the models it sells. Nike continually introduces new models to maintain consumer interest and a sense of high fashion. For instance, the top selling Air Jordan gets a new color scheme every three months. On average, Nike introduces a new shoe style every single day of the year. Discuss the pros and cons of this continual churn of new attributes and new products. How do you think consumers react to this?

   4.      Discuss Nike’s typical advertising strategy in terms of the types of means end connections it creates in consumers. Bring in an example of a current Nike ad to analyze and draw out the means end connections you believe this ad is likely to create in a consumer. With this ad, do you think that Nike is following the strategic direction described in the case (Nike’s advertising is designed “to make a connection” with the consumer)? What are the advantages to a company like Nike of creating a strong “connection” with consumers?

   5.      Not everyone finds athletic shoes highly involving but many people do. For instance, “kids who are into shoes”know a lot about athletic shoes. Teenagers clustered around the local Foot Locker at the mall can talk in staggering detail about the characteristics and relative benefits of the 1995 and 1996 Air Jordans. Discuss the intrinsic and situational source of involvement for athletic shoes and describe some of the means end chains of the most involved people. Highly involved consumers can produce phenomenal sales for a company. In the mid 1990s, one research study showed that the average american teenager buys 10 pairs of athletic shoes a year 6 for specific sports and 4 for fashion. That’s 6 million teenagers buying about $1 billion of Nike shoes. Discuss how Nike’s advertising strategies might differ in marketing a shoe to highly involved and moderately involved consumers.

   Sources: Randall Lane, You are what you wear,”Forbes October 14, 1996,pp.44-46; Joseph Periera, “Nike’s Rivals Hope Buyers Want Bargains,”The wall street journal, June 2. 1997, pp.. B1, B7;Dori Jones Yang , Michael Oneal, Charies Hoots and Robert Neff, “Can Nike Just Do it?”Business Week, April 18, 1994, pp.86-90; the Nike web site at http://www.nike.com/