Better branding | McKinsey
equity has evaluated the importance of the brand in marketing strategy and image derived from consumer needs (Park et al., ) and is the culmination of a diverse new and emerging concepts of customer-brand relationship and brand. The differences between the brand identity strategy and the consumer perceptions. . brand's subjective or perceived attributes in relation to other brands. . about the brand attributes, how it was produced and what needs it can satisfy. conceptualization of consumer brand evaluation: brandimage, brand attitude and becoming more popular in the consumers' world and its demand is world- wide . relationships and to expand and to verity knowledge (Abedin, ).
According to Portera company can follow two generic routes to compete in a market: Day maintains that both approaches have the same objectiveC to create superior customer value, because "regardless of which of these routes is emphasized, the effort will fail unless significant customer value is created" Dayp.
Day addresses the issues in analyzing customer value and proposes that it can be expressed in a "value equation": Although Day's approach to customer value is basically sound, some details regarding consumer customers remain unclear. For example, the process by which consumers perceive product benefits is nebulous: Day particularly addresses product valuation by industrial customers in detail, but this is only in principle a part of a much more complex process of product valuation by consumers.
Hence a theoretical framework which underlies the consumers' overall product valuation is still missing in the literature. Such a framework should address the issues of how consumers perceive the benefits and costs of products, as well as what possible benefits and costs consumers may perceive from products in the market.
The current paper tries to fill these gaps. In addition, the word "value" has discrepant meanings in the marketing literature, especially between its two areas: What marketing strategists mean by "customer value" is quite different from the meanings of the "consumer values" discussed in consumer behavior research Clawson and Vinson ; Kahle ; Peter and Olson ; Sheth, Newman and Gross ; Vinson, Scott and Lamont ; Wilkie Generally speaking, "customer value" focuses on the buyers' evaluation of product purchase at the time of buying, while "consumer values" stress people's valuation on the consumption or possession of products.
Actually, Day's approach to customer value Dayby emphasizing the customers' perceptions, indicates a direction in which the two different, but related, concepts of "value s " in marketing discipline might be integrated. The current paper helps accomplish this integration by suggesting a model of customer value for consumer markets.
This paper first reviews the literature on consumption behavior analysis relevant to marketing strategy. Next, a framework of product valuation for consumers and its typology of product benefit are proposed based on the consumption behavior analysis. After the process of product valuation for consumers has been made clear, the paper presents a comprehensive model of customer value for the consumer market integrating consumer values, product benefits, logistic benefits, and various costs of consumption.
In the proposed model, product benefits, logistic benefits, and costs are defined in terms of consumers' perception in the activities of acquisition, consumption or using and maintenance, as well as consumers' expectation of personal values satisfaction before buying.
Finally, the implications of consumption behavior analysis for marketing strategy are discussed. The importance of a comprehensive analysis of customers' consumption activities in planning effective marketing strategies was first pointed out by Boyd and Levy They maintain that marketing strategies should be planned and implemented in terms of the customer's needs and behavior patterns.
Also, the core element of an effective marketing plan is to think in terms of the "consumption system" in which the product plays a part. Boyd and Levy defined a consumption system as "the way a purchaser of a product performs the total task Underlying this systematic view of consumption are at least two concepts critical to customer value analysis.
First, this systematic view looks beyond the purchase behavior of buyers to the use behavior of consumers: Second, the systematic view emphasizes the dynamic interrelations between the products that comprise a consumption system: Based on their observation of the holistic nature of customer judgment, Day et al. In particular, Day and his colleagues endorsed a usage-situation approach to defining a product-market or competitive structure.
While the usage-situation approach is based on the holistic view of consumption behavior and is dubbed customer-oriented, it deals only with companies' need to define their product-market structures. It has nothing to do with the analysis of customer value and how this value can be expanded.
As Solomon points out, conventional marketing research has paid much more attention to the substitutability of products than to their complementarity, and the usage-situation approach is no exception. In summary, the literature on consumption behavior analysis can proceed further to conceptualize the aspects of complementarity-in-use of products through which consumer may derive product benefits holistically in the product complement.
Based on consumption behavior analysis, the current paper proposes a framework of product valuation for consumers and its typology of product benefits see Figure 1. This model stresses that to investigate the consumer's product valuation, it is necessary to integrate cultural values, personal values, consumption values, and product benefits Clawson and Vinson Cultural Values Cultural, social, and familial environments affect the formation and development of individual beliefs.
In a socio-cultural environment, a set of values usually represents widely shared beliefs about what is desirable. These socio-cultural beliefs are called cultural values or "society core values" Engel, Blackwell and Miniard and are implanted into individuals "naturally" through socialization and education, perhaps with some modification as personality and attitude moderate the learning process.
For example, Kahle proposes a "List of Values" LOV generic to American culture in the s, such as self-respect, security, self-fulfillment, fun and enjoyment in life, and warm relationships with others. These cultural values are seen by some social thinkers as "objective" Frondizi This notion of being objective implies that they are commonly known to the members of a society.
However, not all of the cultural values in a society will be adopted unanimously by its members. Some cultural values might be followed by only a small portion of the people, while other values might be accepted widely.
In sum, cultural values are generic beliefs about what a society argues to be desirable and beneficial. These values are then freely adopted on an individual basis. Personal Values Personal values are the individuals' beliefs about what are desirable to themselves.
They are self-centered; that is, personal values are closely linked to needs. Moreover, they are derived from, and modified through, personal, social, and cultural learning Clawson and Vinson From a cognitive perspective, personal values are the mental representations of underlying needs after the modification, taking into account the realities of the world and reflecting the individual's personality Wilkie For example, the cultural value of "self-fulfillment" might be manifested quite differently in the minds of two individuals with different familial and personal backgrounds.
According to Rokeachhuman values have two main types: Terminal or end-state values are beliefs people have about the goals for which they strive e. Instrumental or means values are beliefs about desirable ways to attain these terminal values e. Therefore, personal values generally correspond to terminal values, while values of desirable activities to be discussed next are comparable to instrumental values. Personal values are enduring beliefs which guide various actions and judgments across specific situations.
Hence, personal values are more abstract and may be generalizable easier than values of actions. In other words, the concept of personal values is similar to the idea of "global values" in the realm of a person's perception proposed by Vinson et al.
Consumption Values Consumption values refer to subjective beliefs about desirable ways to attain personal values. People achieve personal values or goals through actions or activities, such as social interaction, economic exchange, possession, and consumption Sheth et al.
According to means-end chain models of consumer product knowledge Peter and Olsonpeople may have ideas and preferences about various actions that can help them achieve personal values. Therefore, relative to personal values, consumption values are instrumental in nature. For example, owning an elegant house and acquiring a prestigious car are for some people desirable ways of achieving self-fulfillment.
Attending football games especially those of favorite teams and taking a vacation trip are favorable activities which lead to personal fun and enjoyment. Furthermore, individuals may hold several personal values by which they direct or evaluate consumption activities. Therefore, the consumption values of these types of activities or possessions are sophisticated and do not simply satisfy one single personal value Shet et al.
As we can observe in ourselves or others, consumption activities usually include an assortment of goods and services Boyd and Levy For example, "owning an elegant house" requires house owners to acquire many goods and services in addition to the house itself, just as "taking a vacation trip" involves many other related acquisitions.
Moreover, in a product constellation for a consumption activity, there may be some properties in common. McCracken observes that "the consumer goods in any complement are linked by some commonality or unity" p.
From a social interaction perspective, Solomon maintains that consumers employ product constellations in "setting the stage" for the social roles they play. Product constellations occur, because individuals use entire complements of products to achieve personal values. The products unified in a constellation all carry the same information about individual values. Furthermore, Lai maintained that consumers may obtain satisfaction holistically from the related consumption activities and the constellation of products in use.
Consumption Schemata Cognitive psychologists maintain that people may acquire knowledge structures to represent various consumption activities and product constellations Abelson ; Crocker Lai uses the term consumption schema to refer to the cognitive structure which organizes and represents personal ideas and beliefs about the substance of a consumption activity, such as interrelationships among complementary products, the cultural value and social meanings of the commodities, and personal preferences and affective associations.
Hence, a consumption schema represents a consumer's basic thoughts about a consumption activity, though peripheral adjustments may be needed to accommodate the specific situation in which the consumption takes place.
Brand Management: Brand Attributes
In short, in consumption, or possession of products, people may acquire personal consumption schemata or a particular planned patternincluding their anticipation of and requirements for a product or a complement of productsreflecting their consumption values of that consumption or possession. Typology of Product Benefits From the customers' perspective, products are viewed as a bundle of benefits, not attributes Day ; Peter and Olson In other words, "customers are less interested in the technical features of a product or service than in what benefits they get from buying, using or consuming the product.
By designing products with combinations of these attributes, marketers try to attract consumers with particular consumption values. A comprehensive understanding of possible benefits that customers may seek in products is a fundamental basis for marketers to formulate sound marketing strategies, especially product differentiation or positioning Peter ; Boyd and Levy However, these benefits are only generic; that is, they are general, potential, and not yet applied to a specific consumption activity.
Moreover, because Sheth et al. Furthermore, their categorization ignores other important generic product benefits: Going beyond Sheth et al. The typology includes eight generic product benefits: The definitions of these terms are discussed briefly in what follows: Functional benefits are derived from the tangible and concrete attributes that a consumer may directly experience when using or consuming the product. Highly visible products e. Affective benefits are often associated with cultural-ethnic meanings e.
Exploratory, novelty-seeking, and variety-seeking consumption behaviors are examples of epistemic value pursuit. Also, a consumer's propensity to adopt new products is consistent with epistemic benefit Sheth et al. Aesthetic benefit usually is subjective and idiosyncratic. Style demands, product-appearance demands, art purchases, and fashion-following are examples of consumers' pursuing aesthetic benefits.
A Brand’s Personality & Influence on Consumer Behavior
Olshavsky and Granbois claim that hedonic benefit is an important dimension of many products. People are not always looking for rational or "serious" benefits; they may want to relax or be distracted.
Taking a vacation trip, going to bars, watching sports, comic movies or TV programs, or even buying funny trinkets to make fun of friends are examples of hedonic benefit pursuit. A product acquires situational value in the presence of antecedent physical or social contingencies that enhance its functional, social, or other benefits. Situational benefit is measured on the profile of a particular consumption situation. Holistic benefits are frequently required and perceived in clothes, furniture, and food consumption.
Holistic product benefit is a result of "synergy" derived from a product combination. Its implications for marketing strategy will be discussed later in detail. Different types of product benefits may be correlated and combined in particular consumption activities, or there may be trading off between them. In addition, a product may offer multiple generic benefits. For example, "to a first-time home buyer, the purchase of a home might provide functional [benefit] the home contains more space than the present apartmentsocial [benefit] friends are also buying homesemotional [benefit] the consumer feels secure in owning a homeepistemic [benefit] the novelty of purchasing a home is enjoyableand situational [benefit] starting a family " [The braces are the author's, to substitute the word "benefit" for the original word "value" and avoid confusion.
The parentheses, however, are in the original passage. Perceived Product Benefits Generic product benefits are intended benefits that manufacturers design into a product. However, these intended benefits may or may not be perceived or appreciated by particular consumers.
A product has benefit to customers to the degree that they can perceive, appreciate and then use that product as anticipated consumption activities to achieve personal values.
Normann and Ramirez recapitulate this concept well; "A company's offerings have values to the degree that customers can use them as inputs to leverage their own value creation. In this respect, then, companies don't profit from customers.
They profit from customers' value-creating activities" p. In sum, consumers perceive and appreciate product benefits via their personal consumption values and consumption schemata; these product benefits are termed "Perceived Product Benefits" Day In summary, the framework of consumers' product valuation delineates the relationship between "personal values", "generic product benefits", and "perceived product benefits" via "consumption values" and "consumption schemata" see Figure 1.
Shared personalities can influence consumers to have a stronger trust in certain brands. There are three identified modes of action of brand on consumer behavior. It is easier for a brand to create a personality that implies functional benefits than trying to communicate those benefits directly to consumers.
Information chunking uncovers important information about the brand. These information chunks play an important role in the consumer purchasing decision.
This selection may establish a connection and lead to brand loyalty. Consumers often make purchases on products that may provide a certain meaning. The meaning of a brand can be an important factor in the consumer decision making. To successfully differentiate a product, brands must develop a symbolic meaning that establishes a connection.
Symbolic meaning can serve as a medium for social interaction and communication. Ahmad Tyagaraj,p. Consumers may prefer brands with differing and even opposing identities. Brand personality provides depth and feelings towards the relationship between the brand and consumer. There are three kinds of relationships shared between the consumer and the brand. The first relationship relates to a brand being viewed as a friend. This relationship is built on trust and reliability.
In these relationships, brands have its own opinion. It is important to consider what the brand thinks about the consumer.