ConsumerKnowledge04/102OutlineTypesofConsumerKnowledgeSourcesofConsumerKnowledgeTheBenefitsofUnderstandingConsumerKnowledge04/103TypesofConsumerKnowledgeKnowledgeoftheproduct’sexistenceKnowledgeoftheproduct’sattributesandassociationsPurchaseknowledgeConsumptionandusageknowledgePersuasionknowledge04/104KnowledgeoftheProduct’sExistenceGainingawarenessamongconsumersAssessingawareness:Top-of-the-mindawareness(TOMA):howmanybrandscanberecalledfrommemoryRecognition:identifyingknownbrandsfromalistRecall-basedmeasuresaremoreconservativethanrecognition-based04/105KnowledgeoftheProduct’sAttributesandAssociationsProductswithinawarenesssetarelikelytohaveassociationsbetweenthemandinformationfrommemoryProductImage:definedbyentirearrayofassociationsincludingphysicalpropertiesbenefitsfeelingfromconsumptionexperiencesymbols04/106Imageanalysisinvolvesexaminingwhatconsumersknowaboutaproduct’sattributesandassociationsIdentifyattributesandassociationsthatdetermineaproduct’simageAssessstrengthsofassociationsExaminewhatanassociationrepresentsintheconsumer’spsyche04/107PurchaseKnowledge:Howmuchdoesitcost?KnowledgeabouttypicalrangeofpricesforaproducthelpsconsumerevaluatefairnessofthepriceofaparticularbrandThelessconsumersknowaboutprice,thelessconcernedarecompaniesaboutpricedifferencesfromcompetitorsImageanalysisincludeswhatconsumersknowaboutabsolutepriceandrelativeprice04/108PurchaseKnowledge:WhentoBuy?KnowledgeaboutwhenaproductistypicallygoesonsalemaydelaypurchaseMaydeterminewhennewinnovationsarepurchased--manyconsumersdonotpurchasenewinnovationswhenintroducedbecausetheybelievethepricewilldropovertime04/109PurchaseKnowledge:WheretoBuy?KnowledgeaboutwheretobuyaproductguidespurchasedecisionInternetfirmsadvertiseinavarietyofmediatobuildconsumers’knowledgeofalternativeplacestobuyWhereproductislocatedinthestore--whenconsumerareunfamiliarwithstorelayout,theyrelymoreonin-storeinformation04/1010ConsumptionandUsageKnowledgeEncompassestheinformationinmemoryabouthowaproductcanbeconsumedandwhatisrequiredtouseitConsumersareunlikelytobuyaproductwhentheylackinformationaboutuseSometimesconsumerhaveincompleteinformationaboutdifferentwaysaproductcanbeconsumedNewusesforexistingproductsmaylowerproduct’sattractiveness04/1011PersuasionKnowledgeInformationaboutwhatconsumersknowaboutthegoalsandtacticsofthosetryingtopersuadethemPersuasionknowledgeinfluenceshowconsumersrespondtopersuasionattemptsKnowledgeaboutaparticulartacticmayeliminateitseffectiveness04/1012SourcesofConsumerKnowledge•People--fromfamilytosalesperson•Nonpersonalsources:media,theInternet,publications•Experiencefrombuyingandconsumingaproduct•Directexperienceincreasesconfidenceinknowledgeandmakesitmorelikelytobeusedindecision04/1013TheBenefitsofUnderstandingConsumerKnowledgeLackofknowledgeUndesirableknowledgeGaugingtheProductsPositioningSuccessDiscoveringNewUsesGaugingtheSeverityofCompetitiveThreatsEnhancingtheEffectivenessofCustomerRecruitmentActivities04/1014UnderstandingConsumerKnowledge:Lackofknowledge•Knowledgegaps:anabsenceofinformationinmemory•Firmsneedtoidentifyknowledgegapswhichmaypreventconsumersfrommakingpurchases•Knowledgegapsmayexistfornewandcurrentproducts•Publicpolicymayfocusongapswhichundermineconsumerwelfare04/1015UnderstandingConsumerKnowledge:UndesirableKnowledge•Consumersmaypossessknowledgethatisundesirablefromthefirm’sperspective•Misperception:thingsthatpeoplebelievetobetruewhentheyarenot•Firmsmustcombatmisperceptionswhichmakeabrandunattractive•Oftenleadstomodificationofimage04/1016UnderstandingConsumerKnowledge:GaugingPositioningSuccess•Hasthebrandachieveditsdesiredpositioninginthemarketplace?•Examineproduct’simageamongtargetconsumers•Howwellhastheproductcreatedthedesiredmindsetamongconsumers?04/1017UnderstandingConsumerKnowledge:DiscoveringNewUses•Consumersoftenuseknowledgeaboutaproductto“invent”newuses•Understandinghowconsumersuseproducts,marketersmaydiscovernewusesthatcanbepromotedasameansofbroadeningproductappeal04/1018UnderstandingConsumerKnowledge:GaugingSeverityofCompetitiveThreatsHowmuchdoconsumersknowaboutcompetitiveproducts?Understandinghowconsumerscomparecompetitivebrandscanguidemarketingactivitieswithrespecttothosecompetitivebrands04/1019UnderstandingConsumerKnowledge:EnhancingtheEffectivenessofCustomerRecruitmentActivitiesIdentifyingwhatneedstobechangedinbrandpositionandattributesHowmightthesechangesbestbeaccomplished?Advertising,personalsales,orpublicrelations?Shouldsalesmessagesfocusontechnicalinformationoreasytounderstandproductattributes?