Means-End Theory

AIRCEL
Core Philosophy.
Key Questions
Who are my potential customers?
Segmentation
What does matterand what might matterto
potential customers?
Positioning
On which of the things that matter should I focus?
Value Proposition
The core issue is Why products and services have
meaning for customers?
Meaning to customer..
Why does a customer buy a product?
What does it mean to a customer having a
product?
What happens if he does not have the
product?
Therefore, what does AIRCEL sell?

Welcome to the Means-End Chain
Personal Values
Psychological
Benefits
Instrumental
Benefits
Functional
Experiential
Financial
Abstract Attributes
Performance
Attributes
Intrinsic Attributes Extrinsic Attributes
Virgin Mobile UK
What are the key features of the product?
Productprepaid
Pricingfairly uniform
Product off the shelfself service
Customer Service
OperationsIT, Network Systems etc.
Brand
Communication.
Attribute (feature) identification
Attribute
One-dimensional
Pre-Performance
Intrinsic
Materials
Form
Manufacturing
Extrinsic
Brand
Price
Customer Service
Performance
Objective
Subjective
Multidimensional
Abstract
User Imagery
Use Situation
Imagery
Weighted Multi-
attribute
Evaluation
Relationships between attributes
Abstract Attributes
Performance
Attributes
Intrinsic Attributes Extrinsic Attributes
The Attribute Matrix
It is always useful to map the intrinsic
attributes and the extrinsic attributes.
Customers normally pay attention to the extrinsic
attributes or performance attributes rather than
the intrinsic attributes..for example you are
more bothered by whether Chloromint disguises
the smell of cigarettes rather than the active
ingredient Herbasol that leads to this extrinsic
attribute.

Less
Confusion Good at Local For youth
Wide
acceptance
Single Price
Fewer
Choices
Colourful
Packs
Network
Off-the-Shelf
Exercise: Draw up the attribute
classification for Aircel
The Attribute Map for Virgin Mobile,
UK
Brand
name
Colourful
Packs
Sales
through
Stores
Pre-Paid
Custom
er
Service
Simple
Price
Structure
The Attribute Map for Virgin Mobile,
UK
Brand
name
Colourful
Packs
Sales
through
Stores
Pre-Paid
Custom
er
Service
Simple
Price
Structure
Ease of Purchase Fun
The Attribute Map for Virgin Mobile,
UK
Brand
name
Colourful
Packs
Sales
through
Stores
Pre-Paid
Custom
er
Service
Simple
Price
Structure
Ease of Purchase Fun
For Youth
What do the attributes do?
Provide benefits
In August 1997, Sony introduced the Mavica digital
camera. The product was inferior to all current digital
cameras in terms of picture quality and price
However, it had one feature which enabled the user to store
images on floppy discs which simplified the process of
transferring the photos to the customers PC. No other
camera offered this featurethe customer valued the
benefit of quick and easy over great photos
What this shows is that companies get so focused on a single
benefit that they lose sight of the bigger picture.

Two Questions..
What benefits matter?
How are the benefits related?

Typology of Benefits
Benefits
Instrumental
Functional
Process
Output
Experiential
Process
Output
Financial
Process
Output
Expressive
Psychosocial
Process
Output
Output benefits Process benefit
Functional benefits
Experiential benefits
Financial Benefits
Psychosocial benefits
Relationship between benefits.
Functional
Psychosocial
Experiential Financial
Virgin Mobile UKBenefits mapping
Attributes Functional
benefit
Experiential
benefit
Financial
Benefit
Psychosocial
benefit
No Contracts Easy to procure Convenience Lower Search
Cost
No fear of
rejection
No Price
Buckets
Less Confusion Convenience Less overuse
cost
All are same
No Hidden
Fees
Trust more Loyalty Less costs Peace of Mind
No Peak/ off
peak hours
More Useless
planning
Less guilt
while using
Less costs Peace of Mind
No Credit
Checks
Easy to buy Convenience Less Search
costs
No fear of
rejection
Simple Sales
Process
Easy to buy Convenience Lower
transaction
cost
Immediate
Gratification
Great Service Trust and good
experience
A good
feeling
Lower Search
Costs
Happiness
So,
Uni-dimensional
Attribute
Abstract Attribute
Instrumental benefits
Psychological benefits
Exercise
Draw up the Attribute-benefit map for AIRCEL
How does the movement happen
Product Attribute
How does the movement happen
Product Attribute Benefit
How does the movement happen
Brand Attribute Benefit
How does the movement happen
Brand benefit
The basic issue
Customers buy products with attributesbut what they
want is benefit.
However, no product offers all the benefits that is sought
by the customer
So, the customer prioritizes benefits
Should I look for network quality or customer service?
Should I look for price or brand name?
How does the customer tradeoff?
Depends on their Values
It is virtuous to spend Rs. 2,00,000 on your kitchen, but
you think 15 times spending Rs. 30000 on a mobile
phone!
Why? Depends on our value systems
What are values?
Social mores/norms that have developed thru
ages which the consumer believes in.
Consistent yet changing..
People have to purchase goods that are
consistent with social norms else there will be
dissonance and anxiety.
Society has to feel good about ourselves
We have to feel good about ourselves.
Nature of values..
Terminal Values: A preferred end-state of existence
A comfortable lifeA prosperous life
An exciting life (stimulating and exciting life)
A sense of accomplishment (lasting contribution to
society/family)
Pleasure (enjoyable life)
Self-respect (self esteem)
Social recognition (respect admiration)
A world of beauty
Equality
Freedom
Happiness
Spiritual life

Instrumental Values: refers to modes of conduct to
achieve end-state of existence
Ambitious (Hard working)
Broadminded
Capable
Cheerful
Clean
Courageous
Forgiving
Helpful
Honesty
Imaginative
So, essentially
Instrumental Values Terminal Values
Personal Values
Instrumental/Terminal
Psychosocial
Benefits
Instrumental
Benefits
Functional
Experiential
Financial
Abstract Attributes
Performance
Attributes
Intrinsic Attributes Extrinsic Attributes
Therefore, questions you should be
asking
What values matter to your current and
potential customers?
How common are each of the values you have
identified above
Are customers consistent across purchase
situations?
What are the attribute-benefit-value linkages
you have identified?
Customer Decision Mapping
CDM: Consumer Decision Mapping
Nature
Attributes are anchors for meanings that
consumers find in products
Specifically: Attributes lead to Benefits that lead to
value
This is called the Means-end ladderwhich is a chain
containing one or more attributes leading to one or
more benefits leading to one or more values.
Mapping the various ladders visually is called the
consumer decision map or CDM
Flip-top
Cap
Squeezable
tube
Price Fluoride
Sweet
Flavor
Cartoons
on package
No
looking
for cap
Less
Mess
Less
Waste
Tastes
Good
Brush
Longer
Fun
Fewer
Cavities
Neater
Bathro
om
Less
Irritatio
n
Clean
Home
Healthy
Child
Attracti
ve
Smile
Happy
Child
Good
Mother
Save
Money
CDM for a Toothpaste
Pre-
Paid
Available
everywhere
Single
Price
Bucket
Excellent
Customer
Service
Attractive
Packaging
No
Credit
Checks
No
Contrac
ts
Easy to
purcha
se
Fun
Easier
Transac
tions
Conven
ient
Less
Irritation
Peaceful Cheerful Honest
CDM for Virgin Mobile
Transpa
rent
Pleasurable and Happy
end-state
Exercise.
Draw up the possible Consumer Decision
maps for Aircel.
Key question..
What Attribute-Benefit-Value ladder we focus
on?
Question of Segmentation
This we will see tomorrow!