CB Chapter 9

What does a company's "reputation quotient" refer to?

* Refer to book - Table 9.3 (the top USA corporate images) and Table 9.4 (top corporate reputations in eight countries) *

What does "Perceptual Mapping" refer to?

- A form of image analysis that derives "brand images" based on the similarities in the consumers' judgments - Then, Consumers judge the similarity of those Brands examined in the Image Analysis

What does "Modifying the Product's Image" require?

- Changing the consumers' opinions of the product - Changing the product

Why is knowledge about price so important?

- Consumers who are unfamiliar with the prices charged for the product under consideration usually take more time and effort to aquire this information, particularly for more expensive products - Knowledge about the typical range of prices within a product category probably influence consumers' perceptions of weather the price charged by a single product is reasonable and acceptable

How is "image analysis" done?

- Count how many consumers report a particular association when responding to the question about what comes to mind when they think about the Product - Asking consumers to indicate to what extent do they perceive the Product as being linked to particular attributes and associations

In what way can "Image analysis" also be used with the firms themselves?

- How much is the company respected and admired? - What are the quality, innovation, value, and reliability of its products and services? - Are they good corporate citizens with communities, employees, he environment?

Do you consider yourselves "Product Novices" or "Product Experts"?

- Know a little about some categories - Know a lot about others

Why is "when to buy" another relevant part of "Purchase Knowledge"

- Many consumers do not acquire (adopt) new products immediately - They believe that prices will decline over time

Where consumers should purchase the product is also imporantant because...

- Many products can be aquired through different channels - Consumers must decide which channel (retailer) to patronize

Where do people acquire their "Consumer Knowledge?

- Personal v. Impersonal Sources - Business v. Non-business Controlled

Consumer knowledge can...

- Shape inferences consumers make about unknown product attributes using known product attributes - Influence the consumer's acceptance of a product price vis a vis their knowledge of the competitor's prices - Affect the learning and subsequent retrieval of new information - Influences how consumers respond to sales people

What do "consumption knowledge" and "Usage knowledge" mean?

- The information in memeory about how a product can be consumed - The information in memory about what is required to actually use the product

What are "Brand Associations"?

- The linkage in memory between the Brand and other concepts. - These perceptions include Beliefs about the Brand Attributes and Benefits

What are some examples of non-personal information sources?

- The media provides anecdotes about Consumers and Products - Advertising is designed to educate consumers about Products - Magazines include Product Ratings and Tips to be a better shopper - The internet provides easy access to Information

What are some examples of these "associations"?

- The product's physical properties and attributes - The Benefits and feelings that come from consuming the Product - The Symbols, Slogans, and Logos

What is usually a good tactic for improving the consumers' memory?

- Visual representations - Should a political named Hart advertise with a heart?

What approaches exist to assess "Brand-Name awareness"?

- What comsumers are able to "recall from memory" - Focuses on "Name recognition"

What does "Purchase knowldge" encompass?

- What consumers know about the product's price - Whether it can be bought more cheaply at certain times - Where the product can be purchased

Consumers still may be unaware of...

- Which product charges the lowest price? - Which product offers the best warranty? - Some "other" important Product association of Attribute

Why is it imporant to distinguish if Knowledge is based on experience?

- actual experience typically makes us feel more confident about what we know - Greater confidence means that you are more likely to rely on this knowledge during decision making - Knowledge derived from actual experience is more resistant to change - Companies adjust their marketing strategies when targeting consumers lcking direct experience with the product.

Why are firms so worried about identifying "Knowledge gaps"?

- undermine the liklihood of consumers purchasing the product - "Knowledge gaps" are breeding grounds for New Products - The possiblity that people may have knowledge that is undesirable

Why are companies inerested in the level of Consumer Knowledge?

1. Gauging the Product's positioning success 2. Identifying Purchase Barriers 3. Discovering New Uses 4. Gauging the Severity of Competitive Threats 5. Enhancing the Effectiveness of Costumer Recruitment Activities

What is necessary to distinguish between (Product Knowledge)?

1. Knowledge about a product Category 2. Knowledge about a "member" - a Brand - in this category

How many kinds of "consumer knowledge" have been identified?

1. Products knowledge 2. Purchase Knowledge 3. Consumption and Use Knowledge 4. Persuasion Knowledge 5. Self Knowledge

Why are "Usage knowledge" and "Consumption knowledge" important?

1. Unlikely to buy a product without the information about how to use and enjoy it 2. Unlikely to buy a product w/o the infor about the different situations to consume it

"Inadequate" consumption can produce negative consumer satisfaction becasuse...

A misused product may not perform properly and may lead to bodily injudy.

What does "Self-knowledge" represent?

A person's understanding of their own mental processes

What does "knowledge gaps" refer to?

An absence of information in memory

Do consumers even consider such things when deciding their purchase?

Around 25% of consumers report boycotting a company's products or urging others to do so when they disagreed with its policies and actions

Why is "Persuasion Knowledge" important?

Because it influences how consumers respond to persuasion attempts

What does "Perceived Status of the Brand" Improve

Consumer's willingness to purchase "Brand Extensions"

What does "Perceived Higher Quality" improve?

Consumer's willingness to: - purchase "Brand Extensions" - recommend the Brand - pay a premium

What does "Image Analysis" involve?

Examining the current set of BRand Associations that exist the marketplace

What is probably the best source of consumer knowledge?

Experience

T/F: A key part of product's image analysis involves understanding consumers' knowledge about its absolute price and its price relative to competition.

Fact

T/F: Knowledge about a product's location in a store can affect buying behavior

Fact

T/F: The stronger the association, the more often it should be reported

Fact

T/F: Until consumers learned about a Product's existence, it is impossible to convert them into customers.

Fact

T/F: When "Misperceptions" exist that undermine the Pruduct's attractiveness to consumers, correctve actions are necessary.

Fact

T/F: When the actual and the desired images are out-of-alignment, corrective actions will be needed to close the "Image Gap"

Fact

Why is price the most critical aspect of "Purchase Knowledge"

Price can make or break a sale

What is "awareness set"?

Products that are known to the Consumer

What is a "Purchase Pal"?

Shopping with a friend to take advantage of their Product Knowledge

What does "Brand Image" refer to?

The "associations that are activated from memory" when thinking about a Brand

What does an "Image Analysis" asses?

The "strength" of a Product's associations

What benefit can be derived after examining Consumer Knowledge?

The identification of "Knowledge gaps"

What does "desired image" refer to?

The image that a comapny seeks to create in the marketplace for a product

What is "Product Knowledge"?

The information stored in consumer's memory about products

What is "Top-of-the-mind Awareness"?

The percentage of people that name a given Brand first

How do consumer analysts discover these "Associations"?

They can sometimes be revealed according to the consumers' responses to the question: What comes to mind when you think about brand name?

What is the first step of an "Image Analysis"?

To identify the unique Attributes and Associations that make up a Prodcut's Image

What does "relative price knowledge" refer to?

What consumers know about one price relative to another

What does "Persuasion Knowledge" represent?

What consumers know about the tactics the evil marketers use to persuade them

Product knowledge answers...

Where the product is located in the store