Chapter 4.docx

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University of Toronto Scarborough
Management (MGM)
Bill Mc Conkey

Chapter 4 – Knowledge and Understanding Overview of Knowledge and Understanding - Knowledge content – information we already have in memory - Knowledge structure – how consumers organize knowledge o Organize into categories, storing similar things in the same category  Whitening toothpaste  toothpaste  dental hygiene products - Categorziation – the process of labeling or identifying an object. Involves relating what we perceive in our external environment to what we already know o We might label trident gum as a dental hygiene product instead of a candy product - Comprehension – the process of deepening understanding. Involves using prior knowledge to understand more about what we have categorized - We say we “know” something when we have encountered it before and have somehow come to understand what it means and what it is like. - Knowing therefore has to do with our prior knowledge o What we have encountered (knowledge content) o The way the knowledge is organized (knowledge structure) Knowledge Content - Schema – the set of associations lined to a concept o Banana  yellow, 100 calories, bruises easily - The associations in schemas can be described in the following dimensions: o Types of Associations  Benefits, location, ingredients, etc o Favourability  Is the association favourable to you o Uniqueness  Is the association unique to the product  E.g. Greasy is not unique to McDs. But “golden arches” is o Salience  Salience = how easily they come to mind o Abstractness  How abstract or how concrete the associations are - Types of Schemas o We have schemas for many things:  Products  Brands  People  Places o Self-schema = consider whether a brand’s schema fits with the schema we have of ourselves - Images o An image is a subset of associations that reflect what something stands for and how favourably it is viewed o Brand Image – a subset of salient and feeling-related associations stored in a brand schema o Brand personality – the set of associations that reflect the personification of the brand  The way that a consumer would describe the brand if it were a person  A celebrity endorser’s personality can reinforce associations with the endorsed brand’s personality - When an offering is new, the marketer has to create a schema, image, and/or personality to help consumers understand what it is, what it can do for them and how it differs from competing offerings - Brand extension occurs when a firm uses the brand name of a product with a well-developed image - Licensing occurs when a firm sells the right to the brand name to another company that will use the name on its products o Jeep brand on strollers, clothings - Brand alliance occurs when two companies’ brand names appear together on a single product - Consequence of the above options is that consumers develop an image for the new brand by transferring to it their association and favourable feelings with the original brand schema - Developing existing schemas, images and personalities o Use multiple brand extensions o Link the product to sponsorship of an appropriate sporting event o Highlight additional features and benefits - Changing schemas, images and personalities o E.g when a brand becomes stale - Protecting brand images o How a company responds to a brand crisis will affect the brand image o Also, consumer’s prior expectations of the brand will play a critical role o Companies’ customers held a strong, positive image of the brand prior to the crisis suffered less - Scripts – a special type of schema that represents knowledge of a sequence of actions involved in performing an activity Knowledge Structure - Taxonomic Category – a group of objects that are classified in an orderly and often hierarchically based scheme based on their similarity to one another o E.g. Pepsi, Diet Coke, etc = Soft Drinks - Graded Structure – the fact that category members vary in how well they represent a category o Prototype – the best example of a cognitive (mental) category o What affects prototypically?  Shared Associations  A prototype shares the most association with other members of its own category and shares the fewest with members from different categories  Frequency with which an object is encountered as a category member  E.g. is the prototype for online shopping because consumers frequency encounter its name when online or when searching for online sources of books o Brands can develop its identity by:  Positioning a brand as similar to the category prototype  Appropriate when you are trying to appeal to a broad segment of consumers  Positioning away from the prototype  A good way to differentiate a brand - Correlated Associations – The extent to which two or more associations linked to a schema go together o Consumers can mistakenly believe that if a product in a particular category has a type of attribute, other products in that category have similar attributes o E.g. big cars are less fuel efficient than small cars o Consumers also use prior knowledge to estimate the likelihood that two events will occur together - Hierarchical Structure o Superordinate level – the broadest level of category organization containing different objects that share few associations but are still members of the category  E.g. Diet coke and Fiji bottled water = beverages category o Basic level – a level of categorization below superordinate category that contains objects in a more refined categories  E.g. teas, coffees and soft drinks o Subordinate level – a level of categorization below the basic level that contains objects in very finely differentiated categories  Diet or non diet soft drinks - Understanding consumers’ hierarchical category structure can help marketers o Establishing a competitive position  Understand superordinate-category structure can help marketers get a broad view of their competition and use to this understanding to establish an appropriate competitive position  Non-alcoholic beer = promote that its great tasting (central features of
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