Chapter 16
Consumer Behavior and
Product Strategy
Product Related Affect/Cognition
• Consumer Satisfaction
• Consumers respond to
» Expectations
» Performance
» The discrepancy or difference between expectations
and performance.
• Positive disconfirmation = satisfaction
• Negative disconfirmation = dissatisfaction
A Expectancy Disconfirmation
Approach to Satisfaction
Prepurchase
performance
expectations
Post purchase
performance
perceptions
Disconfirmation
Satisfaction / dissatisfaction
Product Related Behavior
• Brand Loyalty/Variety Seeking
– Relates to the pattern of behavior, especially
purchase behavior, over a period of time.
Categories of Brand Commitment and
Purchasing Patterns
High
Consumer
Commitment
Low
Brand
Variety
Loyalty
Repeat
Seeking
Varied
Purchase
Behavior
Single
Multiple
Number of brands purchased in a
particular time period
Brand Loyalty and Usage Rate
Brand Loyalty
Light
Brand-loyal
Brand-loyal
light users
heavy users
usage
Heavy
usage
Brand-indifferent
Brand-indifferent
light users
heavy users
Variety Seeking
Strategies for Usage Rate Matrix
• Brand-loyal heavy user:
– Encourage loyalty and encourage switching to our brand.
• Brand-loyal light user:
– Encourage greater usage rate.
• Variety seeking heavy user:
– Make firm’s brand a salient attribute.
• Variety seeking light user:
– Increase salience of brand name as attribute and increase
usage.
The Adoption curve: Consumer Attributes
100%
3-5%
0%
% Adoption rate
Innovators
Time
Early
Early
Late
Laggards
adopters adopters adopters
10-15%
34%
34%
5-15%
Product Strategy: Product Attributes
• Compatibility
How well does this product fit consumers’ current affect,
cognitions and behavior?
• Triability
Can the consumer try the product on a limited basis with little
risk?
• Observability
Do consumers see or otherwise sense this product?
• Speed
How soon do consumers experience the benefits of this product?
Product Attributes (continued)
• Simplicity
How easy is it for consumers to understand and use this
product?
• Relative advantage
What makes this product better than competitive offerings?
• Product symbolism
What does this product mean to consumers?
• Marketing strategy
What is the role of other marketing mix elements in creating a
functional or image-related relative advantage?