Chapter Four LowInvolvement Consumer Decision Making Session Preview

Session Preview • • Meaning of involvement Strategic implications Utilitarian versus hedonic involvement Enduring

Why Is Involvement a Key Dimension in Consumer Decision Making? • Increases level of

Strategic Importance of Involvement • Advertising – Central versus peripheral cues – Less versus

Segmenting by Involvement: Three Strategic Options • Separate products • One product, separate ad

Consumer Involvement: Three Categories of Decisions • Low involvement • High involvement—utilitarian needs •

Distinction Between Utilitarian and Hedonic Needs • Utilitarian – – Practical Benefits Functional Attributes

Involvement in Web Searches High Involvement Low Involvement Purposeful, directed search Purposeful, non-directed search

Distinction Between Enduring and Situational Involvement • Enduring Involvement – Consumers have continuous interest

Media Involvement High Involvement Internet Low Involvement Magazines Copyright © Houghton Mifflin Company. All

Procter & Gamble Opening Case • The case makes two apparently contradictory statements: •

More P&G Questions • What is P&G trying to accomplish by establishing low involvement

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Chapter Four Low-Involvement Consumer Decision Making

Session Preview • • Meaning of involvement Strategic implications Utilitarian versus hedonic involvement Enduring versus situational involvement • Involvement with media • Social implications of involvement Copyright © Houghton Mifflin Company. All rights reserved. 2

Meaning of Involvement • Involvement = motivation to process information and evaluate brand alternatives • Involvement is greater if product – – – Is tied to self-image Is expensive Has symbolic meaning Has an important functional role Purchase results in high perceived risk • • Performance Financial Social Psychological Copyright © Houghton Mifflin Company. All rights reserved. 3

Why Is Involvement a Key Dimension in Consumer Decision Making? • Increases level of information search • Increases number of alternatives considered • Strengthens product/brand attitudes • Increases perceived risk in choice Copyright © Houghton Mifflin Company. All rights reserved. 4

Strategic Importance of Involvement • Advertising – Central versus peripheral cues – Less versus more emphasis on frequency • Product Positioning – Benefit maximization versus. problem minimization • Price – Inelastic versus elastic • Distribution – Selective versus. intensive • Segmentation: Target high versus low involvement Copyright © Houghton Mifflin Company. All rights reserved. 5

Distinction Between Utilitarian and Hedonic Needs • Utilitarian – – Practical Benefits Functional Attributes Informational Focus on Purchasing Process – Print – Financial and performance risk Copyright © Houghton Mifflin Company. All rights reserved. • Hedonic – Pleasure – Experiential Benefits – Use Symbols & Imagery – Focus on Consumption Process – Broadcast media – Social and psychological risk 8

Involvement in Web Searches High Involvement Low Involvement Purposeful, directed search Purposeful, non-directed search Variety Seeking Copyright © Houghton Mifflin Company. All rights reserved. Browsing Inertia 9

Distinction Between Enduring and Situational Involvement • Enduring Involvement – Consumers have continuous interest in product on day-to-day basis • Situational Involvement – Consumers process and evaluate information only when they have to make a decision Would it benefit marketers to convert consumers from situational to enduring involvement? Copyright © Houghton Mifflin Company. All rights reserved. 10

Procter & Gamble Opening Case • The case makes two apparently contradictory statements: • Internet commerce works best when merchandise is easy to label and doesn’t vary meaningfully within each category. • The Internet is an “experience-oriented destination” and as a result, “provides the opportunity to take the brand’s emotional value to new levels. ” (primarily through interactivity and customization. ) Are these statements contradictory? How can marketers get the brand to new emotional level if doesn’t vary significantly? Copyright © Houghton Mifflin Company. All rights reserved. 12

More P&G Questions • What is P&G trying to accomplish by establishing low involvement products on the Internet? • How can P&G increase involvement with its brands through its Web sites? • What are the strategic implications for brand building on the Web for low involvement products? • What are the pros and cons of selling P&G products online? Copyright © Houghton Mifflin Company. All rights reserved. 13

How Do Online Strategies for Brand Building Differ from Offline Strategies? • Offline strategies rely on advertising in more passive media. • Online strategies have facility for providing more (1) personalization and (2) community through interactive facilities. • Online strategies are more likely to be informationally oriented. • Offline strategies create an experiential focus through symbolism and imagery –e. g. , Harley Davidson. • Online strategies create an experiential focus through interactive communications and personalization. Copyright © Houghton Mifflin Company. All rights reserved. 14