Knowledge and Categorization

1. Knowledge and Categorization Consumer Behavior Fall 2009

2. Incidental Information EXPOSURE ATTENTION PERCEPTION MOTIVATION CATEGORIZATION/ COMPREHENSION ABILITY DECISION ATTITUDE FORMATION & CHANGE OPPORTUNITY MEMORY & RETRIEVAL

3. Categorization Occurs when consumers use their prior knowledge to label, identify, and classify something new Once we have categorized an object, we know what it is, what it is like, and what it is similar to

4. Why do we categorize? Too much information Helps us learn We like to do it We’re good at it! Not interested in everything, but we want to have an idea

5. How do we categorize? Taxonomic Similar objects in same category Objects in categories have same features Lots of sharing within categories Little sharing across categories 3 Types Superordinate Basic Subordinate

6. Beverages Alcoholic Juices Sodas Cherry Diet Regular Caffeine Free Caffeine Free Diet Categorical Structure: Illustration Water Fresca Pepsi Coke DP Sprite A&W Vanilla Diet Coke Diet Vanilla Coke Diet Cherry Coke

7. What influences our categories? How we learn it – sorting study Kids categorize by material Adults categorize by usage What is important to us If on diet, categorize drinks by diet What we are told Culture Expertise

8. How do you measure categories? Ask consumers Sorting tasks Cards with brand names Pictures of products MDS Drawing of average user Brand personality descriptions

9. Aaker’s 5 Dimensions of Brand Personality Excitement Sincerity Exciting Spirited Imaginative Up-to-date Down to earth Honest Wholesome Cheerful Sophistication Competence BP Upper Class Glamorous Good Looking Charming Reliable Hard Working Intelligent Confident Successful Ruggedness Outdoorsy Masculine Tough

10. 5 Dimensions of Brand Personality Sincerity Hallmark, Kodak, and even Coke. Excitement Pepsi Competence Hewlett-Packard and the Wall Street Journal Sophistication BMW or Mercedes Lexus Ruggedness Nike , Marlboro

11. Let’s play OUTBURST!

12. Things that fly Time Kites Birds Bats Insects Airplanes Helicopters Flying Squirrels Paper airplanes Rockets – spaceships Gliders Hot Air Balloon

13. Cosmetics Brands MAC Maybelline Cover Girl L’Oreal Lancôme Estee Lauder Arbonne Clinique Aveda Avon Mary Kay Merle Norman Origins

14. Level of Expertise • Experts – people whose prior knowledge is well developed, in part because they have had a lot of experience and familiarity with an object or a task • Differ from novices in several ways • Category structure is more developed • Have more categories, more associations and a better understanding • Have more subordinate-level categories

15. Everything you wanted to know about a category and more…… Graded members Some members represent category better than others Prototype Best example of a category Most easily recalled Standard of comparison for category

16. So, what did we learn from playing Outburst? Categories have graded structure Prototype = best example of a category Novices and experts have different category structures

17. Another type of category…. Goal-Derived (or Ad Hoc) Contain things we perceive as relevant to a goal We use rules/experience to create these Examples: Things to do on a Friday night Things you eat on diet

18. $25,000 Pyramid One person will give clues, the others will guess the category Example: If category = “things you’d take on a camping trip”, clue giver might say: Sleeping bag Bug spray Flashlight Tent Marshmallows

19. Rules for Clue Givers The following are not allowed: Using hand gestures Saying a key part of the answer (e.g. "a building" for "Things You Build") Using synonyms (e.g. clueing "Things That Are Attractive" with "a beautiful woman") Listing items that do not fit the category at all (e.g. "Benjamin Franklin" for U.S. Presidents)

20. Guessers, shut your eyes… Round #1 - Things in a medicine cabinet Round #2 - Excuses for not doing homework Round # 4 (if time) – Things a dentist would say Conclusion: categories have graded structure and they are malleable too, which is good for marketers!!!

21. Marketing Implications: First Mover Advantage Allows you to be the prototype Easier recall increases sales Consideration Sets Why is this important? Memory Point of purchase Brand Awareness

22. Marketing Implications: Positioning Position close to prototype – “me too” brands Position away from prototype – 7-Up Position relevant to goal – Special K Repositioning Baking soda (deodorant, refrigerator freshener)

23. Takeaway… Consumers’ knowledge structures impact perceptions of products and services