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Consumer Behavior
Learning Objectives
y What is CB?
y Why is it necessary to study CB?
y Who needs to study CB?
y The ‘Dark’ side of CB
We Are Consumers 24-7!
Why?
Because:
Q. Can you think of any moments when you are NOT being a Consumer?
WHAT IS CONSUMER BEHAVIOR?
1. Exchange—An interchange
between two parties where Five Resources:
each receives value Money
Time
2. Resources—Something that Physical energy
others value Knowledge & Skills
3. Value—Sum total of all benefits Social capital
we receive from a product
USER
U Utilitarian
S Social
E Ego-Identity
R Recreation/Hedonic
Would Marketing
Create a Need for
these products?
1. Anthropology
2. Sociology
3. Economics
4. Psychology
WHO SHOULD STUDY
CONSUMER BEHAVIOR
1. Marketers
2. Social Organizations
3. Public Policy Makers
4. Consumers
Discussion: Why?
WHAT IS the PURPOSE OF Marketing?
To Make Money
OR
To Create a Satisfied Customer
To satisfy the
consumer, you Tattoo : Desire
have to bring that (Tattoo as a metaphor)
tattoo out
MOTIVATION Human
Drive to Attain a Goal
Object
ORIGINS of Needs
9 Innate
9 Learned
-------------------------------
9 Biogenic
9 Psychogenic
-------------------------------
9Approach Motivation
9Avoid Motivation
------------------------------------------
9Approach-Avoid Conflict
9 Approach-Approach Conflict
9Avoid-Avoid Conflict
1. Rationalization
2. Projection
3. Aggression
4. Repression
5. Withdrawal
6. Regression
Needs Unveiled
1. AUTONOMY
2. DOMINANCE
3. NURTURANCE
4. EXHIBITION
5. COGNIZANCE
6. EXPOSITION
C.O.N.S.U.M.E.R. M.O.T.I.V.A.T.I.O.N.
Trio of Needs
POWER
AFFILIATION
ACHIEVEMENT
C.O.N.S.U.M.E.R. M.O.T.I.V.A.T.I.O.N.
Conscious Unconscious
Public 1 X
Private 2 3
1. Undisguised Questioning 3. Disguised, Unguarded
2. Disguised Questioning (Natural) response
(Conscious Projection) (Unconscious Projection)
9 Word Association
9 Third Person 9 Sentence Completion
9 Mason Haire Technique 9 Story Completion
9 Mason Haire Technique
C.O.N.S.U.M.E.R. M.O.T.I.V.A.T.I.O.N.
INTRINSIC Enjoyment
9 Sensory Pleasure
9 Aesthetic pleasure
9 Emotional Experience
9 Fun and Play
CONSUMER INVOLVEMENT
Utilitarian
decision stage?
triggers?
problem solving?
search?
Choice
Brand/ Decision-
Product Influence Making Decision Sequence___________
New Old Factors Roles/Unit Trigger Search Evaluation Decision Choice
DECISION STAGE
EXTENSIVE NEW
PROBLEM NEW NEW NEED EXTENSIVE CAREFUL
SOLVING
LIMITED NEW
PROBLEM FAMILIAR NEW BRAND LIMITED CASUAL
SOLVING
AWARENESS INTEREST DESIRE ACTION
KNOW FEEL DO
Variations in Consumer Choice Phenomena
Know Æ Feel Æ Do
Utilitarian/ Trigger = gap (actual – desired)
Instrumental Active Search
Rational Use of Information; Rational Evaluation of Alternatives
Process: Extensive Problem Solving Æ routine response
Choice heuristic: “Buy the Best”
Ultimate Choice: Trade off among competing alternatives
Price as trade-off variable
know Æ Do Æ (Feel)
Feel Æ Do Æ (Know)
Trigger = Stock depletion
Trigger = Impulse, need
Passive Search
Confirmatory Search
Limited/no evaluation of alternatives
Rationalizing evaluation of alternatives
Rational Use of Information
Process: Choice heuristic: “Buy What I like”
Expectancy – confirming
Ultimate Choice: Satisfying model
Process: Choice heuristics: “Buy the Familiar”; “Buy the Cheapest”
Ultimate Choice: Satisficing model Price as secondary concern
Price as deciding factor
Theory of Usage
Variation in Usage
Utilitarian
Satisfaction?
Loyalty?
Relationship?
Effects?
Usage
Jeans
Computers
Ketchup
Variations in Usage Phenomena
Utilitarian/ Loyalty = reward for performance
Satisfaction = (Performance minus Expectations)
Instrumental compared to alternatives
Relationship = Brand Partner Quality
Relationship => repeat, word-of-mouth, price premium
Hedonic/Ego-Expressive
Low Involvement
y Freudian theory
y Neo-Freudian personality theory
y Trait theory
P. E. R. S. O. N. A. L. I. T. Y.
Freudian Theory
Gratification ID EGO
SUPEREGO
P. E. R. S. O. N. A. L. I. T. Y.
Neo-Freudian Theories
y Karen Horney:
◦ Described people as moving toward others (compliant), away from
others (detached), or against others (aggressive).
y Carl Jung:
◦ Collective unconscious: A storehouse of memories inherited from our
ancestral past
◦ Believed people are shaped by cumulative experiences of past
generations
◦ Archetypes: Universally shared ideas and behavior patterns created
by shared memories
Ad Applying
Horney’s
Detached
Personality
P. E. R. S. O. N. A. L. I. T. Y.
TRAIT THEORY
A Personality TRAIT is a Characteristic Behavior.
y This classic ad
starts off with the
line: “The Datsun
240-Z is not exactly
what you would call
a common site.”
y What consumer
personality trait is
this ad appealing
to?
P. E. R. S. O. N. A. L. I. T. Y.
S.E.L.F. C.O.N.C.E.P.T.
A Person’s Conception of Him/Herself
The Sum Total of All the Ideas a Person has
about Him/Herself.
1. Actual
2. Ideal
3. Social-Actual
4. Social-Ideal
Measuring Self-Concept
Image Congruity:
Self-Concept Brand-image Congruency Theory
P. E. R. S. O. N. A. L. I. T. Y.
S.E.L.F. C.O.N.C.E.P.T.
COMPONENTS OF SELF
1. Body
2. Values and Character
3. Competence and Success
4. Social Roles
5. Personality Traits
Extended Self
¾Ethnic/Cultural identity
¾Family Identity
¾Work Organization
¾Social Networks
+
9POSSESSIONS
P. E. R. S. O. N. A. L. I. T. Y.
S.E.L.F. C.O.N.C.E.P.T.
Read Self-Concept Descriptions in your Study Material
1. Any Comments?
2. Write Your Own
Then write: Your Self-concept as a Consumer (What Kind of a
Consumer do you think You Are?)
(e.g., spendthrift, impulsive, consummate, hedonic, experimental,
guarded, trend-seeker, Etc..)
Perception
Learning Objectives
ATTENTION Involuntary
O O Voluntary
STIMULUS FACTOR: vividness/contrast
Topic Interest/Involvement
INTERPRETATION
Depends on
Prior Stock of Knowledge
Prior Expectations
P.E.R.C.E.P.T.I.O.N
Factors Influencing Perception
STIMULUS Characteristics:
Sensory (size, color, movement)
Information Content
CONTEXT
Store, brand name, isolation, contrast
CONSUMER
Involvement, Interest
Sensory and Cognitive Skills
Prior Knowledge
(Prior Expectations)
P.E.R.C.E.P.T.I.O.N
ABSOLUTE AND PERCEPTUAL THRESHHOLD
Absolute Threshold: An Example
Perceptual Threshold
Weber’s Law
J.n.d.
¾ When You Want to Lie BELOW Perceptual Threshold
¾ And When You Want to Rise ABOVE the Threshold
(Examples)
1. Make Explicit (Product’s sensory features)
2. CHANGE
P.E.R.C.E.P.T.I.O.N
Betty Crocker Changes Fall Below the J.N.D.
P.E.R.C.E.P.T.I.O.N
GROUPING
Try to remember a 13/14 digit no.
CLOSURE Try to remember a 5/7 digit no.
P.E.R.C.E.P.T.I.O.N
SUBLIMINAL PERCEPTION
Subliminal Perception. Perception of a stimulus without being
aware of it.
Mere Exposure effect: Liking due to even brief, unrecalled,
exposure.
Prior exposure creates warmth (even without memory)
Therefore, we like things we have seen before even though
we may not remember seeing them!
Automated Response
Lesson: Just Make All Stimuli elements
P L E A S A N T. .
P.E.R.C.E.P.T.I.O.N
PERCEPTION: MARKETING APPLICATIONS
Psychology of Price Perceptions
¾ Reference Price.
¾ Assimilation vs. Contrast
¾ Price as Quality Cue
Country of Origin
Brand Image
Perceptual Maps
Sensory Marketing
P.E.R.C.E.P.T.I.O.N
How Consumers Perceive Marketing Stimuli
BRAND IMAGE
PERCEPTUAL MAPS
POSITIONING METHODS:
¾ By Functional Benefits
¾ By Symbolic Image
¾ By User Image
¾ By Usage Situation
¾ By Competition
P.E.R.C.E.P.T.I.O.N
Positioning + REPOSITIONING
Four Modes
High Involvement-THINK
High Involvement-FEEL
Low Involvement-THINK
Low Involvement-FEEL
M.o.l.d.i.n.g. C.O.N.S.U.M.E.R. A.T.T.I.T.U.D.E.
Scenario:
On March 25, 2007, Columbian singer Shakira gave a concert in Bombay.
Among many costume changes during the show, she also wore a
saree. (Google “Shakira in Bombay” for story and images)
Assume, hitherto you did not like a saree. Now after seeing your favorite
singer star Shakira donning it, how will your attitude toward the saree
change?
SOURCE ATTRACTIVENESS
SOURCE SIMILARITY
Match-up Hypothesis
The Chosen Celebrity should have an image similar to
the Brand’s Desired Image
M.o.l.d.i.n.g. C.O.N.S.U.M.E.R. A.T.T.I.T.U.D.E.
y Resonance y Wordplay
y Order effects y Used to create a double
meaning when used with
a relevant picture
M.o.l.d.i.n.g. C.O.N.S.U.M.E.R. A.T.T.I.T.U.D.E.
y Resonance y Primacy
y Order effects y Recency
y Brand name
M.o.l.d.i.n.g. C.O.N.S.U.M.E.R. A.T.T.I.T.U.D.E.
FUNDAMENTAL WISDOM ON ATTITUDE MOLDING
My Attitude toward:
¾ Body piercing
C.O.N.S.U.M.E.R. A.T.T.I.T.U.D.E.S.
Also called
Tricomponent
Attitude Model
C.O.N.S.U.M.E.R. A.T.T.I.T.U.D.E.
C.O.N.S.U.M.E.R. A.T.T.I.T.U.D.E.
C.O.N.S.U.M.E.R. A.T.T.I.T.U.D.E.
C.O.N.S.U.M.E.R. A.T.T.I.T.U.D.E.
C.O.N.S.U.M.E.R. A.T.T.I.T.U.D.E.
C.O.N.S.U.M.E.R. A.T.T.I.T.U.D.E.
C.O.N.S.U.M.E.R. A.T.T.I.T.U.D.E.
1. Utilitarian
2. Value-expressive
3. Ego-defense
4. Knowledge
C.O.N.S.U.M.E.R. A.T.T.I.T.U.D.E.
Also
called
Attitude
towards
Object
The Fishbein Model: An Example
Beliefs (bi)
Brand Brand Brand
Attribute Evaluation (ei) A B C
Shock absorbent +2 +2 +1 -1
Price less than 500 -1 -3 -1 +3
Durability +3 +3 +1 -1
Comfort +3 +2 +3 +1
Desired color +1 +1 +3 +3
Arch support +2 +3 +1 -2
Total Σ bi ei score +29 +20 -6
C.O.N.S.U.M.E.R. A.T.T.I.T.U.D.E.
Incorporates
Attitude
towards
Behavior
C.O.N.S.U.M.E.R. A.T.T.I.T.U.D.E.
C.O.N.S.U.M.E.R. A.T.T.I.T.U.D.E.
y Change Beliefs
y Shift Importance
y Add Beliefs
y Change Ideal
C.O.N.S.U.M.E.R. A.T.T.I.T.U.D.E.
y Classical Conditioning
y Affect toward the ad or website
y Mere exposure
C.O.N.S.U.M.E.R. A.T.T.I.T.U.D.E.
Prediction
Diagnosis
y Firm-oriented definitions
y Product-oriented definitions
y Market-oriented definitions
y Consumer-oriented definitions
Product-Oriented Definitions
Continuous
Innovation
Dynamically
Continuous
Innovation
Discontinuous
Innovation
Telephone Innovations
• Variety Seekers
• High product
Interest
• Less Well
Integrated
• More
Individualistic
I.N.N.O.V.A.T.I.O.N.S.
Discontinuation or
Rejection
Rejection
Evaluation
Pre- Adoption
existing Awareness Interest Evaluation Trial or
problem Rejection
or Need
Adoption or Rejection
Postadoption or
Postpurchase
Evaluation
Discontinuation
The Relative Importance of Different Types
of Information Sources in the Adoption
Process
High
Personal and
interpersonal
sources
Importance
Impersonal
mass-media
sources
Low Evaluation
Interest
Awareness
Adoption
Trial
A Theory of Communication Flow
I.N.N.O.V.A.T.I.O.N.S./News
WORD OF MOUSE BUZZ MARKETING
¾ Emails Rapid Spreading of Product
¾ Chat Rooms News thru Word-of-Mouth
¾ Weblogs ¾ Peer-to-peer marketing
¾ Public Blog Sites ¾ Viral marketing:
Spreading product acceptance
RECIPE FOR through consumers in an
SUCCESSFUL BUZZ exponential fashion
• ¾ Cyber buzz (buzz thru
• Internet)
•
•
•
Consumer Learning
Learning Objectives
Unconditioned Stimulus
Meat paste
Unconditioned Response
Salivation
Conditioned Stimulus
Bell
Other
examples:
coupons,
sweepstakes,
thank you calls
Consumer As A Learner
An Application of Instrumental Conditioning: Shaping
The shot of a home buzzing with excitement. Seeing her grand father break a coconut, a
The housewarming ceremony is in progress. little girl scampers to her mother and
asks...
..."Mummy, naariyal kyon toda?" Her ...hai Aur shudhta se shakti badhti hai aur
mother explains, "Kyonki, yeh shudh... ghar mein khushiyaan aati hain."
Consumer As A Learner
Contd:
The girl is now seen playing outside in the She takes out a bottle of Parachute, and
garden, building her own mud castle. imitating her grandfather, hits it on the ground.
And repeats her mother's words to her ...khushiyaan aati hain." Product Window:
perplexed friend, "Yeh shudh hai. Ghar Parachute. MVO: "Shudhta ki shakti."
mein...
Marketing Example?
Consumer As A Learner
Cognitive Learning
Memory
Stimulus Stimulus
Generalization Discrimination
A process wherein a A process wherein a
consumer extends a consumer perceives two
learned response for stimuli to be different and
one stimulus to consequently does not apply
another stimulus the same response to both.
y Advertising wearout
Elements of Culture
• Values Discuss
• Norms Are the following examples of
• Rituals culture or not?
• Symbols
¾ A Café Coffee Day cup of
• Customs
latte
• Myths
• Knowledge, Science, and ¾ A bar of Dove soap
Technology
¾ A TV commercial for Nike
• Laws
featuring a celebrity
• Arts
• Material Culture ¾ A print ad for a medicine
focusing entirely on medical
benefits
C.U.L.T.U.R.E.
C.U.L.T.U.R.E.
¾ RITUALS
¾ Myths
¾ Customs
Some Ancient Customs:
Dowry Price
Bride Price
Some Modern day Customs:
¾ Bridal Shower
¾ Wedding Rituals
C.U.L.T.U.R.E.
Discussion:
How do these apply
to:
a. Olympic torch
b. College
commencement
ceremony
c. Engagement ring
ceremony
C.U.L.T.U.R.E.
Grooming Ritual
Exchange
Ritual
C.U.L.T.U.R.E.
y Content Analysis
y Consumer Fieldwork
y Value Measurement Instruments
S.U.B.-C.U.L.T.U.R.E.
A distinct cultural
group that exists as an
Subculture identifiable segment
within a larger, more
complex society.
S.U.B.-C.U.L.T.U.R.E.
Sub-Culture
The effort to
determine to what
Cross-Cultural
extent the
Consumer
consumers of two
Analysis
or more nations are
similar or different
C.R.O.S.S.-C.U.L.T.U.R.E.
Globalization of Local Cultures
Acculturation
C.U.L.T.U.R.E.
Measuring Consumer Ethnocentrism
C.U.L.T.U.R.E.
¾ Lost in Translation
¾ Written Scripts
¾ Colors
¾ Numbers and Other symbols
¾ Standards of Nudity and Taboo Topics
¾ Product Consumption Differences
C.U.L.T.U.R.E.
International Mistakes…
Source:
http://www.cxo.eu.com/currentissue/article.asp?art=269413&issue=190
Reference Groups and Family
Influence
Learning Objectives
y Reference groups: Types, strong vs. weak
influence, types of influence, types of
appeal
y Opinion leadership: qualities, how to
identify them
y Family vs. household, family decision
making, consumer socialization of children
R.e.f.e.r.e.n.c.e. G.r.o.u.p.s.
GROUP Members:
Types of Groups
IDENTIFYING
OPINION LEADERS
1. Observation Discussion
2. Self-Designation Apply these methods to
identify O.L.s for
3. Sociometry (a) For a rally on campus
4. Key-Informants (b) For an environmental
Trustworthiness awareness campaign
O.P.I.N.I.O.N. L.E.A.D.E.R.S.
Measuring Opinion Leadership
F.A.M.I.L.Y.
Define Family
Define Household
Discuss:
How can
Marketer
use the
FLC?
F.A.M.I.L.Y.
FAMILY DECISION MAKING PROCESS
Discuss:
1. Can family members make
“individual” decisions?
2. Do all these steps
inevitably occur in joint
family decisions?
Eight Roles in the Family Decision-Making
Process
ROLE DESCRIPTION
Influencers Family member(s) who provide information to other members
about a product or service
Gatekeepers Family member(s) who control the flow of information about a
product or service into the family
Deciders Family member(s) with the power to determine unilaterally or
jointly whether to shop for, purchase, use, consume, or dispose of
a specific product or service
Buyers Family member(s) who make the actual purchase of a particular
product or service
Preparers Family member(s) who transform the product into a form suitable
for consumption by other family members
Users Family member(s) who use or consume a particular product or
service
Maintainers Family member(s) who service or repair the product so that it
will provide continued satisfaction.
Disposers Family member(s) who initiate or carry out the disposal or
discontinuation of a particular product or service
F.A.M.I.L.Y.
Husband-Wife DECISION Roles
Discuss:
Which products decisions are likely to be of each type?
F.A.M.I.L.Y.
FACTORS Influencing Spousal Roles
Discuss:
1. Authoritarian
2. Neglectful
3. Democratic
4. Permissive
Consumer Decisions
Q. Which Source is
Called Advocate Source?
D.E.C.I.S.I.O.N. –M.A.K.I.N.G.
STEP 2: INFORMATION SEARCH (Contd.)
Sources of Information
Q. Do Knowledgeable
Consumers Depend More on
Some Sources than Others
(Compared to Not-so-
knowledgeable sources)?
D.E.C.I.S.I.O.N. –M.A.K.I.N.G.
STEP 2: INFORMATION SEARCH (contd.)
SEARCH STRATEGIES
Rules of Thumb
¾Quick Inference
¾Brand Name
¾Past Experience
¾Recommendation
D.E.C.I.S.I.O.N. –M.A.K.I.N.G.
STEP 2: INFORMATION SEARCH (contd.)
Discuss:
How Do You
Know
What Features
You
Want?
Or Should want?
D.E.C.I.S.I.O.N. –M.A.K.I.N.G.
Compensatory Model
Non-Compensatory Models
¾ Conjunctive
¾ Disjunctive
¾ Lexicographic
¾ Elimination by Aspect (EBA)
D.E.C.I.S.I.O.N. –M.A.K.I.N.G.
STEP 3: STEP 3: ALTERNATIVE EVALUATION
(contd.)
Imperfections in
Consumer Judgment
FRAMING EFFECTS
D.E.C.I.S.I.O.N. –M.A.K.I.N.G.
STEP 3: ALTERNATIVE EVALUATION (contd.)
WHY IT HAPPENS:
Cognitive Effort
Anchoring Effect
D.E.C.I.S.I.O.N. –M.A.K.I.N.G.
Exit
Voice
Loyalty
Psychology of Satisfaction
Customer Satisfaction Outcomes
Dissatisfaction Response
Future Response
Why Do Dissatisfied Customers NOT Leave?
SWITCHING COSTS
¾ contract investment lost
¾ New search/shopping costs
¾ New Set up costs
¾ Learning costs
¾ Performance risk
¾ No known better alternatives
¾ Some current feature lure
Consumer Complaining
Related Concepts:
Perceived Justice
Recovery
Make-Goods
Disposition Alternatives
Recycling
Which item
can you
yourself
Reduce
Reuse
Recycle
Will You?
Product Disposal
Two-Factor Model of Recycling
Post-Choice Experience by Involvement
DISCUSSION:
y Decision Sequence
◦ Outlet First, Brand Second
◦ Brand First, Outlet Second
◦ Simultaneous
y Influences on store evaluative criteria
◦ List and rank evaluative criteria (characteristics) when
shopping for:
x major grocery shopping trip
x buying a quart of milk in a hurry
x buying a suit
x buying a watch
x buying a newspaper
C.O.N. S.U.M.E.R. A.S. A. S.H.O.P.P.E.R.
¾Browsing
¾Bargain Hunting
¾Socialization
¾Seeking Status
¾Self-gratification
¾Market Learning
¾Recreation
¾Acquisition
SHOPPING ORIENTATIONS
Task Vs. Leisure Orientation
¾ Task Oriented
¾ Leisure oriented
¾ 1. Unplanned Restocking
¾ 2. Unplanned Evaluated, New
Purchases
¾ 3. Impulse purchases
Discussion:
Recall and
describe your
most recent
instance of
extended
browsing.
Then check
off which
factors aided
it.
C.O.N. S.U.M.E.R. A.S. A. S.H.O.P.P.E.R.
In-Store Purchase Behavior
C.O.N. S.U.M.E.R. A.S. A. S.H.O.P.P.E.R.
STORE ENVIRONMENT
¾ PHYSICAL
¾ SOCIAL
Four Elements of Physical Environment
Discussion:
Name YOUR
Stores for
each of the
orange circles
in the diagram.
C.O.N. S.U.M.E.R. A.S. A. S.H.O.P.P.E.R.
Discussion:
Name YOUR stores at each stage
C.O.N. S.U.M.E.R. A.S. A. S.H.O.P.P.E.R.
Discussion:
Does This Model Work For You?
C.O.N. S.U.M.E.R. A.S. A. S.H.O.P.P.E.R.
DISCUSSION:
Name two stores, one you are more loyal to (or at least prefer more)
and one less; then rate each on the “What” and “How” factors.
C.O.N. S.U.M.E.R. A.S. A. S.H.O.P.P.E.R.
DISCUSSION:
Do Store Brands Make Stores More
Attractive? For Whom?
C.O.N. S.U.M.E.R. A.S. A. S.H.O.P.P.E.R.
Discussion: Rate these stores: (a) Pantaloons, (b) Café Coffee Day; (c) Westside;
(d) Spencer’s (e) McDonald’s; (f) Pizza Hut
C.O.N. S.U.M.E.R. A.S. A. S.H.O.P.P.E.R.
Discussion:
Rate Yourself.
Do you believe you are
an impulse buyer? Do
your ratings confirm
that?
For what kinds of
products?
When Can Impulse
buying become an
addiction?
C.O.N. S.U.M.E.R. A.S. A. S.H.O.P.P.E.R.
C.O.N. S.U.M.E.R. A.S. A. S.H.O.P.P.E.R.
LAST WORD
Shopping
¾It is Necessary
¾And, for many, it is Fun. Store by Chase Design Group
Discussion: Write an essay on what your life will be like if there were
no modern-day indoor or outdoor malls and shopping plazas.
Saxonville Case
Learning Objectives
y How to determine optimal positioning for
a brand based on consumers’ motivations,
influences and values
y Understand how a 4-step process utilizing
research results can be used to determine
viable positioning alternatives
y How to recommend tactics accompanying
a positioning strategy including brand
name, product varieties, advertising and
sales promotion
Introduction
y Segmentation is the identification and
profiling of distinct groups of buyers who
might require varying product and service
mixes by examining demographic,
psychographic and behavioral differences
among buyers
y Positioning is the designing of the
company’s offering and image to occupy a
distinctive place in the mind of the target
market
Current Situation
y Market/Industry
(Since 2004, 0% vol. increase in bratwurst & breakfast, Italian sausage
9% and 15% growth in ’04 & ’05, Saxonville has flat growth in brats,
double digit decline in breakfast sausage and matched Italian usage
industry growth)
y Competition
(Mama Mia with ‘authentic Italian heritage’, Hertfordshire ‘freshly and
locally made’, Pagalia Brothers with both)
y Customer
(FFH, 20-50 years old)
y Company Status/Issues/4Ps
y SWOT
Research Methodology
y Use of Previous Research
y Identification of Segments (w.r.t
demographic and behavioral
characteristics)
y Four-Step Process
1. Mini pilot groups to understand what current Italian sausage
users say about use of the product, AND
Focus group to understand current behaviors, triggers to
purchase, unmet demands, product benefits, attributes, ideals,
core value of products
2. Develop positioning ideas
3. Consumers prioritize and improve positioning concepts
4. Monadic testing with purchase intent scores
Considerations to assure surveying the
‘right’ consumers
y Age
(20-30 years, 30-40 years, 40-50 years)
y Lifestyle
(Working fill-time/part-time, Stay-at-home-mom)
y Geography
(Saxonville bratwurst territory for Saxonville
brand,Vivio Italian territory for Vivio brand,
Territories with both brands in market for
perceptions of the ‘other’ brand, Italian sausage
territories for competitive brands)
Research Results
y Focus Group
-Heavy users purchased once a week in winter and once every two weeks
in summer, light users purchased at least once every six weeks
-Husband and children enjoyed
-Females cooked
-Italian sausage is ingredient for other meals
-Vivio is of exceptionally good quality, color, taste, texture
-Vivio not a suitable name
-Women did not feel good about pre-packaged food
-Women wanted to make wholesome and appealing meals for family but
did not have time or skills for it
-Desired to be nurturing mothers and homemakers
-Believed a meal could be a magnet to bring everyone to the table
y Six concepts
y Two top alternatives
Alternatives and Recommendations
y Family Concept (Pros Cons)
y Clever Cooking (Pros Cons)
Brand laddering
y Value
y Emotional benefit
y Functional benefit
y Attributes
Brand laddering
y Family Connection
Value- Job well done
Emotional benefit- Togetherness/Connectivity
Functional benefit- Everybody loves it
Attributes- Perfect blend of seasoning and spices
y Clever Cooking
Value-Job well done
Emotional benefit- Creativity
Functional benefit- Product versatility
Attributes- Unique flavor combinations and forms
Family Concept
Name
Positioning Statement
Tagline
Communication Strategy
-Key functional benefit
-Key emotional benefit
Product Variations
-Flavors
-Forms
Packaging
In-store tactics
Clever Cooking
Name
Positioning Statement
Tagline
Communication Strategy
-Key functional benefit
-Key emotional benefit
Product Variations
-Flavors
-Forms
Packaging
In-store tactics
Tactics and Recommendations
y Product Varieties
y Packaging
y Advertising and Sales Promotions
What happened?
Saxonville adopted ‘Clever positioning’ and supported it with the
following tactics: