MRKT 452 Lecture Notes - Lecture 15: Canola, Rapeseed, Cooking Oil
11 Jun 2018
School
Department
Course
Professor
Categorization+goes+hand-in-hand+with+attitudes
Attitude'='liking&or&disliking
Can&be&presented&using&a&scale
•
Can&have&them&towards&brands&and&people
•
Important&because&if&consumers&like&a&brand&more,&they&are&more&likely&to&
buy&that&brand&vs.&the&competing&brand
•
Important&for&people&because&if&consumers&like&celebrity&endorsers,&they&are&
more&likely&to&buy&the&brand&endorsed&by&the&celebrity
•
Marketers&want&to&know&the&best&ways&to&improve&attitudes&towards&
brands/celebrities
•
Categories'-can&influence&attitude/choice&via&factors
Influencing'Factors
Associations
Category&Information&=&Category&Associations
Product&Category
§
E.g.'iPhone&can&be&categorized&as&a&cell& phone,&smart&phone&
(implies&high&tech,&and&complex&associations),&or&fashion&
accessory&(implies&stylish,&and&expensive&associations)
Prunes&used&to&have&bad&associations&=&laxative&which&was&
bad&for&the&prunes&growers&
□
Changed&more&to&dried&plums&vs.&prunes&as&a&product&
category
□
Category&of&cooking&oil,&rape&seed&oil&has&negative&
associations&=&rebranded&to&canola&oil
□
Which&menu&is&more&attractive&even&though&both&of&them&
are&the&same&=&category&of&foods&used&in&menu&B&have&
positive&associations
□
Label&of&the&category&matters□
Cola&and&beer&market&=&the&word&"diet"&is&associated&with&
bad&taste&and&"light"&is&associated&with&positive&health&
benefits
□
Hybrid&categories&can&be&leveraged&=&fruits&being&cross-
bred
□
Country-of-Origin
§
E.g.'iPhone&is&made&in&California&and&people&associate&Cali&with&
"fun"&and&"creative"&associations
E.g.'Australian&Country&Associations:&"Outdoor,&Big,&Bold"&which&
can&transfer&to&Fosters&beer
○
Attribute&Information&=&Attribute&Associations
Price
When&knowledge&about&the&product&is&low&=&use&price&as&an&
index&of&quality&(expensive&product&is&the&better&product)
□
Low&motivation&and&effort&=&consumers&use&heuristics□
Use&to&send&social&signals&to&others&=&social&quality□
Wine&and&food&are&examples&of&subjective&quality&=&price&is&
highly&important&
□
§
Features&
§
Brand&Name&-picked&according&to&proper&associations
Viagra&comes&from&Vigor&=&strength□
Levitra&comes&from&Levitation&=&strength□
Letters&in&the&alphabet&=&X&and&Z&have&futuristic&and&high-
tech&associations&=>&pharmaceutical&and&high-tech&
products&(X-box)&use&this
□
§
Packaging
Wine&market&=&shift&from&glass&bottles&to&plastic&bottles&but&
research&shows&that&consumers&associate&plastic&with&
"cheapness"&which&would&affect&perceived&quality
□
Leverage&in&a&positive&way&in&favor&of&the&brand&=&
advertising&Stella&beer&with&a&wine&glass&because&its&
associated&with&"sophistication"&
□
§
○
•
Competition
Create&new&product&categories&=&reduce&competition&+&increase&sales
E.g.'Minivan&and&SmartCar&
§
Fewer&other&brands&have&had&time&to&launch&products&in&this&new&
category&=&lower&competition
§
○
Reposition&in&a&different&category&=&reduce&competition&+&increase&sales
Reposition&in&categories&that&are&less&crowded
§
Sports&drinks&are&becoming&crowded&with&brands&=&Gatorade&can&
reposition&in&the&health&drinks&category
§
Energy&drinks&are&crowded&=&Red&Bull&can&reposition&it&as&a&mixer&
drink&(Red&Bull&and&Vodka)
§
○
•
Memory
Happens&because&categories&have&prototypical&brands&=&easy&to&recall&
brands&for&most&consumers
○
Prototypical&brands&have&multiple&advantages
Think&of&the&brand&=&considered&for&purchase&and&gives&the&brand&
a&leg-up
§
Think&of&it&quickly&=&the&brands&project&a&positive&feeling&of&
familiarity&and&sense&of&comfort
§
○
•
Confirmation'Bias'-can&bias&interpretation&of&attributes
Prior&expectations&bias&subsequent&judgements•
E.g.'Hyundai&is&rated&highly&when&tested&by&consumer&reports&=&objective&
quality&is&high
Perceived&quality&is&medium,&at&best&when&consumers&are&randomly&
surveyed&=&creates&a&gap
○
Gap&is&due&to&confirmation&bias&that&stems&from&country-of-origin&=&
Korean&brands&are¬&known&to&produce&the&highest&quality&products&=&
biases&judgement&of&quality&in&the&survey
○
•
Issue&faced&by&any&new&brand&coming&from&certain&countries&=&prior&
expectations&of&low&quality&might&bias&subsequent&judgements
•
Country-of-origin&associations&can&change&once& consumer&reports&keep&
changing,&people&buy&more&of&it,&etc.&=&happened&with&Japanese&brands
•
Interpersonal'Judgements'-Attitudes'Towards'People
Influences&•
E.g. Kobe&Bryant
Category&Information
Race&□
Profession□
§
Attribute&Information
Playing&Record□
Charity&Work□
§
Social'Categories
Race
§
Gender
§
Age
§
^+visually+apparent+categories+that+are+ancient+(grown+used+to+using+them)+^
Religion
§
Nationality
§
Language
§
Profession
§
When'Social'Categories'Have'the'Strongest'Effect'on'Interpersonal'Judgements
Under'Pressure'-increases&reliance&on&category&associations
Time&Pressurea.
Emotional&Pressureb.
Economic&Pressurec.
1.
Mixed'Information'-for&category&root&influence&to&happen2.
Lots&of&Options&=&social&categories&act&as&cut-offs3.
Stranger&=&lack&information&about&the&attributes&(not&fair&but&that&is&all&you&
have&to&go&by)
4.
Criteria&is&Vague&=&qualifications&are¬&that&specific/many&which&compels&
you&to&use&social&categories
5.
Low&Effort&=&tired6.
Making&judgements&of&hidden&attributes7.
Strong&associations&with&a&category8.
Attractiveness
External'Cues'-easy&to&categorize
Height
○
Facial&features
○
Skin&color
○
Clothes
○
Accent&
○
Evolutionary'Value
Proxy&for&health
○
Attractive&=&healthy&=&successful&reproductive
○
Minimize'Bias'
Increase&knowledge
Abstract
○
Concrete
○
•
Increase&MAO•
Use&nudges•
Categorization
Tuesday,& 13&March&2018
10:31&AM
Categorization+goes+hand-in-hand+with+attitudes
Attitude'='liking&or&disliking
Can&be&presented&using&a&scale•
Can&have&them&towards&brands&and&people•
Important&because&if&consumers&like&a&brand&more,&they&are&more&likely&to&
buy&that&brand&vs.&the&competing&brand
•
Important&for&people&because&if&consumers&like&celebrity&endorsers,&they&are&
more&likely&to&buy&the&brand&endorsed&by&the&celebrity
•
Marketers&want&to&know&the&best&ways&to&improve&attitudes&towards&
brands/celebrities
•
Categories'-can&influence&attitude/choice&via&factors
Influencing'Factors
Associations
Category&Information&=&Category&Associations
Product&Category
§
E.g.'iPhone&can&be&categorized&as&a&cell& phone,&smart&phone&
(implies&high&tech,&and&complex&associations),&or&fashion&
accessory&(implies&stylish,&and&expensive&associations)
Prunes&used&to&have&bad&associations&=&laxative&which&was&
bad&for&the&prunes&growers&
□
Changed&more&to&dried&plums&vs.&prunes&as&a&product&
category
□
Category&of&cooking&oil,&rape&seed&oil&has&negative&
associations&=&rebranded&to&canola&oil
□
Which&menu&is&more&attractive&even&though&both&of&them&
are&the&same&=&category&of&foods&used&in&menu&B&have&
positive&associations
□
Label&of&the&category&matters
□
Cola&and&beer&market&=&the&word&"diet"&is&associated&with&
bad&taste&and&"light"&is&associated&with&positive&health&
benefits
□
Hybrid&categories&can&be&leveraged&=&fruits&being&cross-
bred
□
Country-of-Origin
§
E.g.'iPhone&is&made&in&California&and&people&associate&Cali&with&
"fun"&and&"creative"&associations
E.g.'Australian&Country&Associations:&"Outdoor,&Big,&Bold"&which&
can&transfer&to&Fosters&beer
○
Attribute&Information&=&Attribute&Associations
Price
When&knowledge&about&the&product&is&low&=&use&price&as&an&
index&of&quality&(expensive&product&is&the&better&product)
□
Low&motivation&and&effort&=&consumers&use&heuristics
□
Use&to&send&social&signals&to&others&=&social&quality
□
Wine&and&food&are&examples&of&subjective&quality&=&price&is&
highly&important&
□
§
Features&
§
Brand&Name&-picked&according&to&proper&associations
Viagra&comes&from&Vigor&=&strength
□
Levitra&comes&from&Levitation&=&strength
□
Letters&in&the&alphabet&=&X&and&Z&have&futuristic&and&high-
tech&associations&=>&pharmaceutical&and&high-tech&
products&(X-box)&use&this
□
§
Packaging
Wine&market&=&shift&from&glass&bottles&to&plastic&bottles&but&
research&shows&that&consumers&associate&plastic&with&
"cheapness"&which&would&affect&perceived&quality
□
Leverage&in&a&positive&way&in&favor&of&the&brand&=&
advertising&Stella&beer&with&a&wine&glass&because&its&
associated&with&"sophistication"&
□
§
○
•
Competition
Create&new&product&categories&=&reduce&competition&+&increase&sales
E.g.'Minivan&and&SmartCar&
§
Fewer&other&brands&have&had&time&to&launch&products&in&this&new&
category&=&lower&competition
§
○
Reposition&in&a&different&category&=&reduce&competition&+&increase&sales
Reposition&in&categories&that&are&less&crowded
§
Sports&drinks&are&becoming&crowded&with&brands&=&Gatorade&can&
reposition&in&the&health&drinks&category
§
Energy&drinks&are&crowded&=&Red&Bull&can&reposition&it&as&a&mixer&
drink&(Red&Bull&and&Vodka)
§
○
•
Memory
Happens&because&categories&have&prototypical&brands&=&easy&to&recall&
brands&for&most&consumers
○
Prototypical&brands&have&multiple&advantages
Think&of&the&brand&=&considered&for&purchase&and&gives&the&brand&
a&leg-up
§
Think&of&it&quickly&=&the&brands&project&a&positive&feeling&of&
familiarity&and&sense&of&comfort
§
○
•
Confirmation'Bias'-can&bias&interpretation&of&attributes
Prior&expectations&bias&subsequent&judgements•
E.g.'Hyundai&is&rated&highly&when&tested&by&consumer&reports&=&objective&
quality&is&high
Perceived&quality&is&medium,&at&best&when&consumers&are&randomly&
surveyed&=&creates&a&gap
○
Gap&is&due&to&confirmation&bias&that&stems&from&country-of-origin&=&
Korean&brands&are¬&known&to&produce&the&highest&quality&products&=&
biases&judgement&of&quality&in&the&survey
○
•
Issue&faced&by&any&new&brand&coming&from&certain&countries&=&prior&
expectations&of&low&quality&might&bias&subsequent&judgements
•
Country-of-origin&associations&can&change&once& consumer&reports&keep&
changing,&people&buy&more&of&it,&etc.&=&happened&with&Japanese&brands
•
Interpersonal'Judgements'-Attitudes'Towards'People
Influences&•
E.g. Kobe&Bryant
Category&Information
Race&□
Profession□
§
Attribute&Information
Playing&Record□
Charity&Work□
§
Social'Categories
Race
§
Gender
§
Age
§
^+visually+apparent+categories+that+are+ancient+(grown+used+to+using+them)+^
Religion
§
Nationality
§
Language
§
Profession
§
When'Social'Categories'Have'the'Strongest'Effect'on'Interpersonal'Judgements
Under'Pressure'-increases&reliance&on&category&associations
Time&Pressurea.
Emotional&Pressureb.
Economic&Pressurec.
1.
Mixed'Information'-for&category&root&influence&to&happen2.
Lots&of&Options&=&social&categories&act&as&cut-offs3.
Stranger&=&lack&information&about&the&attributes&(not&fair&but&that&is&all&you&
have&to&go&by)
4.
Criteria&is&Vague&=&qualifications&are¬&that&specific/many&which&compels&
you&to&use&social&categories
5.
Low&Effort&=&tired6.
Making&judgements&of&hidden&attributes7.
Strong&associations&with&a&category8.
Attractiveness
External'Cues'-easy&to&categorize
Height
○
Facial&features
○
Skin&color
○
Clothes
○
Accent&
○
Evolutionary'Value
Proxy&for&health
○
Attractive&=&healthy&=&successful&reproductive
○
Minimize'Bias'
Increase&knowledge
Abstract
○
Concrete
○
•
Increase&MAO•
Use&nudges•
Categorization
Tuesday,& 13&March&2018 10:31&AM
Document Summary
Important because if consumers like a brand more, they are more likely to buy that brand vs. the competing brand. Important for people because if consumers like celebrity endorsers, they are more likely to buy the brand endorsed by the celebrity. Marketers want to know the best ways to improve attitudes towards brands/celebrities. E. g. iphone can be categorized as a cell phone, smart phone (implies high tech, and complex associations), or fashion accessory (implies stylish, and expensive associations) Prunes used to have bad associations = laxative which was bad for the prunes growers. Changed more to dried plums vs. prunes as a product. Changed more to dried plums vs. prunes as a product category. Category of cooking oil, rape seed oil has negative associations = rebranded to canola oil. Which menu is more attractive even though both of them are the same = category of foods used in menu b have positive associations.
