Consumer Knowledge CK is the information stored in memory that is relevant to the purchase, consumption and disposal of goods and

services. - Brand Associations: Linkages in memory between the brand and other concepts, these linkages (what consumers know) are known as Beliefs/Perceptions BA include beliefs about brands attributes and its consumption benefits Ex. Of consumer responses are: want to buy brand extensions, recommend brand and pay a higher price for the brand Ex. Of BA: perceptions about brands quality and perceptions of brand as a social status. Positive brand associations (+brand quality) A brand status assoc. only helps the likelihood of buying brand extensions *****TYPES OF CONSUMER KNOWLEDGE: 1) Product knowledge: information in consumers memory about products (knowledge of product category and knowledge about brands in this category) a- Product Category Knowledge: Prereq starting point for developing demand in marketplace. What cons know about a general product category. b- Brand Knowledge: Specific brand within product category. Most imp aspect, whether consumers are aware of brands existence. Before product enters consideration set it needs to enter awareness set. In 2004 americans were most aware of Coca Cola and least of Progresso soups. Amazon, partnership; if its on amazon it must be good J&R Top of the Mind Awareness: brand that is remembered or thought of first. Recall from memory. Name recognition: Identify familiar names from a list. *Recognition-based estimates have a higher level of awareness. Each brand in the awareness set has a set of associations, which may include product attributed and benefits, also product slogans, product endorsers, sponsorships, advertising campaigns, logos,etc. Brand Image: Entire array of associations activated from memory when consumers think about the brand. *Image Analysis: Examining the current set of brand associations that exist in the marketplace. The initial step is to identify assoc. by asking consumers What comes to mind when you think about brand or product name? This approach assumes consumers accurately report their brand image. The second step is to asses the strength of a brands associations by: count how many consumers report a particular assoc when responding to what comes to mind first when they think about the brand. Or ask consumers to indicate the extent to which they perceive the brand as being linked to an assoc. ex: indicate perceptions of brands quality on a scale from high quality to low quality-> approach used by the Reputation Institute and Harris Interactive to asses corporate image; corporate reputation. Higer reputation quotient rating=more favorable corp imag. Top performers in RQ procedure: Johnson and Johnson. Average stability measure 52% Budweisers horses Perceptual Mapping: form of image analysis, that derives brand images from consumers similarity judgements- ask cons to judge the similarity of those brands examined in the image analysis. ->How similar are brands A and B? and report opinions from extremely similar to extremely dissimilar. *Brands that are perceived as being similar are located CLOSE to one another on the perceptual map, those different are farther apart. Advantage of p.mapping is that it doesnt require identifying the particular sets of important attributes that drive consumers brand image. Replaced by similarity judgements. Good to suggest new products by asking consumers about their ideal brand. Ideal brand is then located in the perceptual map in a position unoccupied by existing brands, companies can see an opportunity to introduce a product in the vacant perceptual space. Ex on chart: ideal brand would represent product with great taste and few calories. Building brand knowledge entails building an assoc. between brand and another concept. Sometimes this concept already exists in cons memory but its missing the linkage between it and the brand name. Blockbuster-no late fees assoc. Sometimes this knowledge must be built, Reeboks vector logo assoc. 2) Purchase Knowledge: various pieces of information consumers have about buying products. What consumers know about products price, if it can be bought more cheaply

at certain times, and where it can be purchased. - Cost: perception on price depend on knowledge about products price and knowledge about typical range of prices within product category. Ex: cost of tuition: many students and parents overestimate the true costs. A quarter of stud and par think cost would equal or exceed $8,000, misperception concept. *Relative price knowledge: What consumers know about one price, relative to another. Business with a relative price advantage should communicate it to consumers. Managers pricing decisions depend on their perceptions on how well informed consumers are about prices. Products absolute price (fare for flying Miami to cuba) and its price relative to competition (how much others charge for the same ticket) - When to buy: knowledge about when to buy determines when new innovations are determined. Many consumers dont buy immediately thining pice will go down later. - Where to buy: American consumers are reluctant to buy prescription drugs online. 4-6% do it. Shoppers were more accurate in identify the location of products placed on peripheral or exterior isles than central or interior. Unplanned purchases when unfamiliar with the store rely on in store info 3) Consumption and Usage Knowledge: information in memory about how a product can be consumed and what is required to actually use the product. A new use may lower products attractiveness, ex Avons Skin so soft: after shower moisturizer, tar spots. A misused product may cause dissatisfaction. 4) Persuasion Knowledge: what consumers know about the goals and tactics of those trying to persuade them. Ex: voting-> sign use of visual imagery., pairing candidate with a liked stimulus. 5) Self-Knowledge: Metacognition. How well you now yourself.. Persons understanding of her own mental processes. To report whats important to them. Conjoint analysis>cellphones: most import. Access fees, less imp connection fee. *****SOURCES OF CONSUMER KNOWLEDGE: 1) Personal vs Impersonal: whether or not the knowledge source is another human being. 2) Business vs NonBusiness controlled: from the business community. Non business have three greatest impact on cons. Cons. Find newspapers and local tv the most credible Knowledge derived from actual experience is more resistant to change. Companies monitoring what people say about them> Delahaye Index: how its discusses across tv and print. Microsoft + BENEFITS OF UNDERSTANDING CONSUMER KNOWLEDGE: 1) Gauge whether the position intended for their product actually exists in the cons. Minds: compace Actual image with Desired image 2) Identify product barriers: knowledge gaps: absence of info in memory. Undesirable associations, Misperception: inaccurate knowledge. 3) Discover new uses: 4) Gauging severity of competitive threats: Implications for public policy: consumer welfare is the primary concern. II. Chapter 10 Beliefs, Feelings, Attitudes and Intentions Attitudes: global evaluative judgements, good and desirable product. Intentions: subjective judgements about how they will behave in the future. Beliefs: subjective judgements about the relationship between 2 or more things. Easy vs difficult. Feelings: Affective states. Mood, reaction Beliefs and feeling are the building blocks in which attitudes are built. Attitudes determine intentions. Intention of buying becomes stronger as your attitude is more favorable. **CONSUMER BELIEFS: -Expectations: beliefs about the future. Cons. Willingless to spend is determined by their beliefs about their financial future. ICE Brand distictiveness: USP concept: Unique selling proposition. Comparative advertising. Without distictiveness consumer loyalty is unlikely. -Inferential Beliefs: use info from one thing to form beliefs about another. Ex: price-quality inferential beliefs: to form belief about product quality. Partially comparative pricing: retailer features price comparisons for some but not all products it carries. Paticpants reported les favorable relative price beliefs for the noncomparatively -Consumer confusion: conflicting info and knowledge, insufficient info, **CONSUMER FEELINGS: Upbeat, negative, warm. Mehrabian and Rusells PAD conceptualization: for understanding the influence of store environments. 3 types of emotional

response: Pleasure (positive feelings),; Arousal (excitement and stimulation), Dominance (of being in control) Donovan: pleasure is the most imp. Consumption experiences evoke feelings. *CONSUMER ATTITUDES: Evaluative judgments. Favorable opinion. Influence cons intentions. One indicator of attitudes: which brands they think are the best. Harris poll, sony Equitrend: familiarity, perceived product quality and purchase intent. -Attitudes property: Valence-> whether att. Is positive, negative or neutral. Extremity_> intensity of liking and disliking. >Attitude resistance: degree to which an attitude is resitant to change. Want to be highly resistant less vulnerable to competitive attacks. Attitude confidence: her or his attitude is correct. Attitude held with direct experience are held with more confidence Confidence is important: bec it can affect the strength of the relationship between attitude and behavior can affect and attitudes supsectinbility to change. Accesibility: how easy attitude can be retrieved from memory *TYPES OF ATTITUDES: 1) Attitude toward the object (Ao)-> represents an evaluation of the attiude of the object, for example product Aad> consumers attiude towards the ad- global evaluation of advertisement Model based on set of beliefs about the objects attributes weighted by the evaluation of these attributes. Companies want consumers to perceive their producsts as: 1) possessing desirable attributes (when Ei is positive, Bi should be positive) 2) Not possessing undesirable products (when Eei is negative, bi should be negative) FISHBEIN MULTIATTRIBUTE model is to understand all different kinds of attitudes (higher scores indicate more favorable attitudes) - IDEAL POINT MULTIATTRIBUTE ATTITUDE MODEL For understanding consumer attitudes toward products (LOWER are more favorable, best score it can receive is 0) A major attraction of the MULTIAT model is their SUBSTANTIAL DIAGNOSTIC POWER, why they like it. It also segments consumers based on the importance they place on various attributes. Usefulness for new product development ATTITUDE CHANGE IMPLICATIONS FROM MULTS AT MODELS: Three basic ways to change consumers attitudes: 1) Changing beliefs: change attitude pul your attitude up pull competitors attitude down( comparative adv) 2) Changing attribute importance: increasing it is desirable when the competitors brand is farther from the ideal point than you offering. 3) Changing ideal points: altering consumers preference about what the ideal product should look like Intentions as predictor of behavior: spending, repurchase. Purchase, shopping, search, consumption Behavioral expectations: perceived likelihood of performing a behavior. Forecasting accuracy depends on how far into the future one is trying to predict. Volitional control: degree in which behavior can be performed at will Perceived behavioral control CONSUMER KNOWLEDGE PPT http://www.slidefinder.net/c/consumer_knowlledge/5359497 COGNITIVE LEARNING http://www.slidefinder.net/search/cognitive%20learning