Consumer Behavior

Successive Sets in Decision Making

 Brand vs product
We don’t fall in love with products -- we fall in
love with brands. Brands offer a promise and
an emotion. Brands are about how they make
people feel. Brands fulfil a customer’s wants.
while you may need a product, you
will want a brand.
Products equal functions. Brands
equal emotions.
look at them- Just an image
• In each case you see and understand more
than the simple shapes and colors of which
they are comprised.
Setting Product
Strategy
 What Is a Product?
A product is anything that can be offered
to a market to satisfy a want or need,
including physical goods, services,
experiences, events, persons, places,
properties, organizations, information,
and ideas.
Five Product Levels
Consumer Goods Classification

Convenience

Shopping

Specialty

Unsought
 Industrial Goods Classification
• Materials and parts
• Capital items
• Supplies/business services
 Product Differentiation
• Product form • Durability
• Features • Reliability
• Customization • Repairability
• Performance • Style
• Conformance
 Service Differentiation
• Ordering ease
• Delivery
• Installation
• Customer training
• Customer consulting
• Maintenance and repair
• Returns
The Product Hierarchy

Item

Product type
Product line
Product class
Product family
Need family
 The Product Hierarchy
Need family—The core need that underlies the
existence of a product family. Example: security.
Product family—All the product classes that can
satisfy a core need with reasonable effectiveness.
Example: savings and income.
Product class—A group of products within the
product family recognized as having a certain
functional coherence, also known as a product
category. Example: financial instruments.
 The Product Hierarchy
Product line—A group of products within a product class that
are closely related because they perform a similar function,
are sold to the same customer groups, are marketed
through the same outlets or channels, or fall within given
price ranges. A product line may consist of different brands,
or a single family brand, or individual brand that has been
line extended. Example: life insurance.
Product type—A group of items within a product line that
share one of several possible forms of the product.
Example: term life insurance.
Item (also called stock-keeping unit or product variant)—A
distinct unit within a brand or product line distinguishable
by size, price, appearance, or some other attribute.
Example: Prudential renewable term life insurance.
Product Mixes
DO IT FOR YOUR COMPANY
 What Is Cobranding?
In co-branding—also called dual branding
or brand bundling—two or more well-
known brands are combined into a joint
product or marketed together in some
fashion.
 Factors Contributing to the
Emphasis on Packaging
• Self-service
• Consumer affluence
• Company/brand image
• Innovation opportunity
Packaging Objectives
 Functions of Labels

 Identify the product or brand

 Grade it
 Promote it