• Chapter Eight
o Conditions for HDC (High Involvement Decision Making)... also know as complex decision making
o 5 Stages of High Decision Process
♣ A customer can stop at any stage
• Need arousal (internal & external) > info processing (search & perception) > brand evaluation > purchase > post purchase
♣ You create a lot of beliefs in a high involvement decision making
♣ Product category must be high involvement!
• This means that the product category must be of high personal relevance to the consumer because in some way there is PERCEIVED RISK in the product category.
o Five types of perceived risk
♣ performance risk because the product is a complex unit such as a car.
♣ social risk since the product is used selectively by certain groups.
♣ financial risk because the product is costly to buy and also to use.
♣ psychological risk because the product is capable of changing the consumer's self-concept
♣ physical risk because the product is capable of physically hurting the consumer and/or others.
o Time, knowledge, and enough information to decrease perceived risk
o Low Involvement Decision Making
♣ Buy first, think later...
♣ no info search,
♣ buy on the basis of price alone
♣ not have strong brand attitudes
♣ not use complex (high involvement decision making) decision making
o Needs Arousal
♣ "felt deprivations"
♣ First stage in HDC
♣ Concerns how consumers go about developing an understanding of their needs prior to purchasing a high involvement product
♣ "wants" are the product categories that fulfill such needs.
♣ The process of need arousal
• Internal input variables/external input variables > need recognition > consumer's psychological set/her mind!
o Maslow's Hierarchy of Needs
♣ shows five needs that are common to all human beings. These needs are a "hierarchy" since the lower order needs from physical to safety needs must be satisfied first before the higher order needs of love, esteem and self-actualization can be satisfied.
o Internal and External Variables in Need Arousal
♣ Internal variables: influences arising from the consumer's demographics and psychographics including age, gender, income, lifestyle, personality and past experiences.
♣ External variables: the variables outside of the consumer which may influence the consumer's recognition of their needs. These environmental variables include the marketing activities of companies, the consumer's culture, subculture, friends and family.
♣ Internal and external variables usually work together to create need recognition
• a consumer's past experiences, demographics, psychographics AND their family and friends could combine to form the consumer's recognition of their need for a new house.
o Consumer's Psychological Set (what's in their mind)
♣ This comprises of consumers' existing brand attitudes and the benefit criteria the consumer seeks in the product category.
• Brand attitudes refer to the overall attitudes towards particular brands.
o defined as consumer's learned predispositions towards certain brands.
o three components of BRAND ATTITUDES
♣ brand beliefs
• the cognitive component of BRAND ATTITUDES.
• A brand belief is a subjective association between any two discriminable concepts
• a brand may have both positive and negative beliefs.
• Brand beliefs are the same as the "product attributes"
♣ the overall attitude to the brand
• The sum total of all these beliefs (some positive and some negative) result in a favorable or unfavorable Overall Brand attitude.
• This component is defined as a person's overall disposition towards another person or object
♣ intention to buy (or not!)
• Note that this is not purchase of the brand.
o In fact, it may not even lead to purchase of the brand.
• However, intention to buy or behave towards the brand in some positive way, is the best indicator that we have to predict brand purchase.
• Intent to buy is only 30% of the time
• Brand criteria are factors that the consumer seeks in all brands in a product category, regardless of any particular brand.
o BENEFIT CRITERIA REFERS TO THE ENTIRE PRODUCT CATEGORY
o Consumers use brand criteria as factors in a product category to help in deciding on one brand over another.
o Information Search
♣ the second stage of HDM
♣ consideration set of brands - the set of brands from which they will make their final selection of a brand
• (a) more brands in the product category to expand their consideration set
• (b) more brand criteria to help them to compare brands in their consideration set.
• Search for? More brands and Criteria. The process of perception when they select information, organize info, and interpret info
♣ Perception is defined as the selection, organization and interpretation of stimuli.
♣ Types of Search. There are three types of information search, ongoing search, purchase directed search and passive acquisition of information.
• Ongoing search occurs on an enduring basis.
o The consumer is highly involved in the product category in some way and always searches for information in this product category regardless of whether they are about to buy the product.
• Purchase directed search occurs when and only when the consumer needs to make a purchase in the near future. The consumer may or may not be highly involved in the product category.
• Passive acquisition of information occurs when the consumer is not involved in the product category and is not about to buy the product category.
o Extent of search
♣ How much information will the consumer search for?
♣ The level of risk.
• Higher the risk, higher the information search
• higher the price or financial risk, higher the search.
♣ The amount of time pressure.
• higher the time pressure, lower the amount of information search.
• Note that this is a negative correlation between time pressure and information search.
♣ Higher the perception of significant differences between brands in the product category, higher the information search.
• Consumers sometimes perceive that a product category is fraught with uncertainty because they could really go wrong if they purchased the wrong brand
♣ The Cost of Search
• two types of cost in information search, monetary and non-monetary.
o Monetary costs are the costs of money in order to search.
♣ Having to travel to search (i.e. gas)
o non-monetary costs of search in terms of time costs
♣ time spent looking at ads, shopping at retail outlets, etc.
♣ psychological costs of shopping
• having to deal with sales people at a car dealership
o Higher the monetary and/or non-monetary costs of search, lower the information search.
• Level of prior experience
o Higher the consumer's level of prior experience, lower the level of search.
o Consumer's prior experience with the product category provides them with more prior knowledge of the product category and allows them to search more efficiently
o Sources of Search
♣ There are two sources of search - personal/non-personal, trusted and non-trusted.
• Trusted sources are those that do not have a vested interest in the sale of a brand.
o Neutral sources
• Non-trusted Thus, all marketing sources (sales people, ads, etc.)
• Personal sources involve an actual person interacting one-on-one with the consumer
o A personal source could also be trusted or non-trusted source
o Brand Evaluation
♣ One model of high involvement decision making that is used by consumers is the expectancy value model.
• This model allows consumers to come to a decision on which brand of, for example, automobile is the best choice for them or which brand is expected to provide the most value.
• four components to this model
o the benefit score
♣ for each brand.
♣ This is the score given by the consumer to a brand on one of the brand criteria.
o The importance weight
♣ FOR EACH BENEFIT CRITERIA.
♣ This is the score given by the consumer to a benefit criteria to indicate the importance of this criteria.
o Total expected value
o Real brand score
o Brand score on criteria
o The Limitations of EVL
♣ It is a quantitative model of decision making
• Consumers may not be so quantitative in their brand evaluation.
• Or, they may not actually give numbers to the scores but some other less quantitative language of their own, say crosses and checks.
♣ a brand with the highest expectancy value does not necessarily get purchased.
• As we shall see, there are other things as well that lead to purchase.
♣ the outcome also depends on whether consumers use a compensatory or non-compensatory method of decision making.
• Compensatory: If you do bad in one category you can make up for it in another
o If consumers add up all the real scores for each brand and then decide on a brand
o consumers are allowing a brand to make up for weaknesses on one criteria with strengths on another criteria.
• Non-compensatory: you can't make up for weakness, the moment you don't perform well, you're out
o in which any brands that do not do well in the first (most important) benefit criteria are rejected forthright without considering them further
o Purchase (or no purchase)
♣ First, we must understand that consumers do not have to buy at this stage.
• They could put off the purchase or just decide that the product category was not for them at all.
• intend to buy the brand in the product category and not end up buying the brand or perhaps even buying a different brand from the one they thought earlier had the most expected value.
• A loss of income,
• a change in family situation
• fluctuations in the economic and/or political environment
• a loss of faith in the brand or company
• new developments in competitive brands
♣ Instrumental actions are those actions that the consumer must complete before they can actually possess a brand.
• They occur before purchase and after brand evaluation
• These actions may require an entire process of decision making as well.
o Post Purchase
♣ We care what consumers think about after they have already bought the brand because we want them to buy the brand again and they will only do so If they are satisfied with their first purchase
♣ We want the consumers to buy and rebuy auxiliary services
♣ We want the consumer to talk
♣ dissonance - a state of mental conflict involving two different beliefs.
• Consumers always feel some dissonance after a high involvement decisions, like buying a car or marriage
♣ Satisfaction is a positive feeling of fulfillment.
• to buy the brand again and they will only do so if they are satisfied with their first purchase.
♣ Dissatisfaction is only after performance is perceived.
• It is not the same as dissonance because dissonance can be at any time, even before the purchase of the product.
♣ Assimilation effect occurs when the consumer is more of less satisfied
• The consumer wants to assimilate as much good news about their purchase as possible
♣ Contrast Effect occurs when the consumer is clearly dissatisfied with the purchase
• The consumer will interpret negative info about the brand more negatively than it really is
• Chapter Ten
o Branding is defined as a process from the aspects of identification of a brand to the aspects of differentiation of a brand.
♣ Branding is about identifying our brands as part of a product category (or categories) and differentiating our brand from other brands.
♣ Consumers like to identify brands as
• (a) belonging to a certain product category (CATEGORY IDENTIFICATION)
• (b) in high involvement product categories, consumers also like to identify brands as trustworthy and reliable (TRUST IDENTIFICATION).
♣ Two types of identification for low involvement
• Category identification to consumers, all brands are the same in the product category and hence any brand will do
o In some product categories, all brands are the same and they only need to recognize that a brand belongs in a product category in order to buy it
o They will buy any brand that is available to them in that product category
• Trust identification identify a particular brand as being trustworthy and reliable
♣ Two types of identification for high involvement
• Rational differentiation product attributes and benefits that are different from other brands in a particular situational; context
• Emotional differentiation attractiveness elements such as being "fun", "cool", and "dynamic" and other brand creating images that are different from other brands
♣ Four Branding Strategies
• there are four types of consumers and they require different types (and degrees) of identification and differentiation strategies on our part.
• This typology of consumers is based on two dimensions.
o On the horizontal dimension we have consumers who vary from high to low on consumer involvement with certain product categories.
♣ Perceived risk
o On the vertical dimension we have consumers who also vary from high to low but this time on the amount of decision making required to purchase a certain product category
• Hence, PERCEIVED RISK (note that it is a perception and not necessarily reality) is the KEY to this entire matrix of consumer decision processes. All four quadrants of the matrix can be differentiated on the basis of perceived risk.
• category identification, trust identification, rational differentiation and emotional differentiation.
♣ Four Types of Consumers
• The consumers in Quadrant 1
o thoughtful consumers who have high involvement with a product category and spend a high amount of decision making effort and time in buying the category.
o This is the group with the highest level of perceived risk
♣ there is risk due to the product category and also risk due to the amount of time that has to be spent in buying the product category.
o The thoughtful consumer is highly involved and spends a lot of time buying products like homes, autos, insurance, etc.
o These consumers have to be provided with all four branding strategies discussed earlier - category identification, trust identification, rational differentiation and emotional differentiation.
• Quadrant 2
o represents the variety seeking consumer with a moderate amount of perceived risk
♣ although there is little risk due to the product category there is some risk due to the amount of time that has to be spent in buying the product category.
o Low involvement
o spends some time buying products like luggage, carpets, cheese, wine, etc.
o as with all four types of consumers, they must be provided with category identification.
o rational differentiation and emotional differentiation. They will make their brand choices based on the differences they perceive between brands.
• Quadrant 3
o is the brand loyal consumer who sees little perceived risk
♣ although there is some risk due to the product category there is no risk due to the amount of time that has to be spent in buying the product category.
o These consumers frequently and HABITUALLY buy a familiar brand that they prefer AND with which they have favorable attitudes.
o Their brand loyalty is product specific. This person may be brand loyal to toothpaste but not brand loyal to soap.
♣ They are not universally loyal to a product
o Brand loyal consumers are more self-confident,
♣ shop for the brand quickly and efficiently
♣ they need to be emotionally satisfied
o Brand loyal consumers are more store loyal
o Brand loyal consumers perceive little risk in buying the brand but may see risk in the product category.
♣ Thus, they need both category and trust identification.
o Brand loyals are more likely to be from minority groups.
• Quadrant 4
• INERT consumer who has no perceived risk
o there is no risk due to either the product category or due to the amount of time that has to be spent in buying the product category.
o Buying out of habit (repeated purchase)
o Brand loyal and inert consumers both have in common is that they buy though habit.
o they are different from brand loyal consumers because they have no or very few attitudes towards the brand they always buy.
o we reinforce their association of our brand as being synonymous with the product category with category identification.
So, once again, what is the difference between brand loyals and inerts?
• Brand loyals and inerts both need repurchasing of the brand. But this by itself may only be Inertia! This is only HABIT.
• BUT brand loyals have a strong and positive attitude to the brand that they buy. This results in loyalty and not inertia.
• Brand loyalty needs BOTH repeat purchasing AND strong, positive attitudes towards the brand.
• Four Theories of Learning
o Classical Conditioning
♣ Low Involvement
♣ if two dissimilar objects are repetitively associated together in close contiguity to each other, the emotional response originally elicited by the unconditioned stimulus can, over time, be elicited by the conditioned stimulus alone.
♣ Salivate (UCR), Food (UCStimulus), Bell (CS).... Repetition and contiguity
♣ In sum, classical conditioning strategies in advertising commonly use nonverbal cues, such as music and sound effects, which are available only in the electronic media
o Systematic Learning Theory
♣ High involvement
♣ When a reason is given (rational) use words
♣ Systematic learning theories view the consumer as an active processor of information.
♣ The recipient of a persuasive message goes through the process of perception as discussed before. Namely,
1. Attention to the message
2. then, comprehension of the message
3. then, rehearsal of the message (which produces a conclusion)
4. Finally, retention of the message in memory.
• It is the verbal content of the message, or verbal communication is the primary determinant of beliefs and evaluations about brands under conditions of systematic learning
o The process of the creation of beliefs and evaluations about brands on the basis of verbal advertising communication is also the process of developing knowledge by description, which is based upon reason
• Thus, the generation of reason is linked to the systematic learning of product and brand information from ads.
o Heuristic Learning Theory
♣ Choose an easy way
♣ Low involvement
♣ heuristic processing involves the use of simple heuristic cues in order to arrive at a conclusion (brand preferences, etc.).
♣ Thus, consumers may sometimes use simple decision rules (or "rules of thumb") in their behavior such as:
1. buying a brand name
2. buying the brand advertised by an expert or an attractive or trustworthy spokesperson (celebrities, typical consumers as we have seen before)
3. buying the brand that most people use
4. Buying the brand that is advertised the most
5. Buying the cheapest brand
6. Buying the name they have bought before
♣ Accordingly, heuristic processing may be associated with greater emotional responses.
o Vicarious Learning
♣ I learn from watching others
♣ Observation of others leads to imitation of their behavior
♣ Ads that portray social reward or punishment for an actor due to use or non-use of a particular brand arouse identification and emotion.
♣ The point is that humans construct beliefs and rules about which brands to use based on emotional communication.
♣ The process of observing such emotional expression results in arousal and a vicarious sharing of the same subjective experience as undergone by the model in the ad.
♣ The consumer comes to associate the brand with the emotion generated and sees the brand as the social instrument that obtains rewards and stays punishments
• Steps in the branding process over the product life cycle a radical innovation
o Product concepts statements (how is the product the same? How is it different?
o Main Consumer Behavior Problem (MCBP) possible disconnect between the target market and the chosen product concept
o Solution the MCBP
o First Stage: Introduction
♣ The goal is to achieve category indentification
• Promote the brand
• Make the target audience aware
o Second Stage: Growth
♣ The goal is to achieve rational differentiation
• Be thoughtful
o Third Stage: Maturity
♣ The goal is to achieve trust identification and emotional differentiation
o Last Stage: Decline
♣ The goal is to achieve trust identification
• This is an emotional process and it takes time
• BRAND TRUST RESULTS IN STRONG AND FAVORABLE ATTITUDES (Key to brand loyalty!) TOWARDS THE BRAND WHICH, IN TURN, LEADS TO BRAND LOYALTY AND THE FOLLOWING PROFITABLE OUTCOMES FOR THE FIRM.
o Brand loyal consumers buy more of the same brand.
♣ More sales
o Brand loyal consumers talk more about the brand
♣ More sales
o Brand loyal consumer are cheaper to maintain.
o Brand loyal consumers pay more for the brand because of favorable attitudes ("this brand is unique").
• This is why Brand loyalty is the Holy Grail of marketers. It leads to greater PROFITS through many means!
• Product quality is the cornerstone of brand loyalty
o Product quality is the most important (more important than advertising) because the product is the foundation. Advertising is the perception of the goodness of the product
o Product is the most important p
• Chapter 11
o Perceptions are defined as a mental process that uses previous knowledge to select, organize and interpret the stimuli that are registered by our senses.
♣ Perceptions are selective
♣ A change in fonts, color, packaging can change the consumer's thoughts on the product's quality
♣ Perception comes before emotion
♣ Perception is created from the senses
♣ The difference between a perception and an attitude is attitude/emotion is valence meaning they are always positive or negative
♣ Perceptions precedes arousal
♣ based on past experience. Hence, our "selection, organization and interpretation of stimuli" is based on what we are familiar with.
o The Importance of Consumer Perceptions
♣ Consumer perceptions are important in marketing because
• Perceptions affect all four Ps - product, price, distribution and promotion.
• Consumers' overall perceptions of all the aspects of a brand result in a brand image for the brand.
• Perceptions lead to emotions and thoughts which in turn, lead to behavior.
o if we are to persuade people, then we must be able to see things from their "perspective" which is based on their perceptions about what they consider to be reality.
o The Process of Perception
♣ The process of perception consists of selection (includes attention and exposure) organization and interpretation of a stimulus.
♣ Exposure > attention >organization> integration> attitude
♣ It is important to understand that selectivity is present in the entire process of perception
• From attention to exposure to organization to interpretation
♣ Selective Perception
• When two consumers perceive an identical advertisement, a package, or a product very differently, selective perception has occurred.
• Expose yourself to it and attend to it (attention)
• Expose (physical activation of the senses... eyes dilate or you get shivers after watching the ad
• attention (cognitive resources (a thought), you think about the ad even for just a moment... you did more than see the ad)
• What stimuli do people select to attend to?
o They select stimuli that are available to them.
o They select stimuli that are compatible with their most urgent needs.
o They select stimuli that are different from what they expect to find.
• Why are consumers selective in their perceptions?
o To reduce information overload.
o we are "selective" about what stimuli we attend to and what stimuli we expose ourselves to.
♣ Exposure occurs when a stimulus produces some kind of sense activation
♣ attention involves the momentary allocation of cognitive resources
• thinks about the stimulus at least for a moment
o To reduce cognitive dissonance.
♣ Cognitive dissonance occurs when a consumer has two conflicting beliefs
♣ BALANCE THEORY holds that a person who is in such a state of "imbalance" and experiencing cognitive dissonance will seek and ultimately achieve a state of balance using selective perception.
• The consumer will begin to see the brand selectively till she/her now dislikes the brand and this restores the balance between the three actors in our system
• If the customer is imbalanced state they are in dissonance
• Selective perception can change the balance
• ALL POSITIVE SIGNS OR AN EVEN NUMBER OF NEGATIVE SIGNS IS A BALANCED STATE.
• Thus, selectivity in perceptions is the first step in the process of perception. It results in, first, selective exposure and, next, in selective attention. However, selectivity is also used in the next two steps of the process of perception - organization and interpretation.
♣ Selective Organization
• How do I get people to organize it? Make it into a whole.
o We can ensure continuity between the elements of a print ad
♣ Consumers tend to organize their thoughts better if the structure of the message is clearly laid out for them.
♣ Flow of design
o We can ensure that the packaging of our brand, for example, has some similarity with other brands in the product category.
♣ Ex. Using the same colors or logos with line extensions
o Our package and brand can also gain from proximity to other brands in the distribution of our brand, for instance.
♣ Ex. Have line extensions near the original product
o Another way to get consumers to organize our message clearly is to ask them to bring closure to something that is incomplete.
♣ Ex. When ads asks a question, the consumer wants to answer
o Providing a context or situation that is attached to the brand.
♣ The context is usually in the "background" of the ad and the product is usually in the "foreground"
• A library setting, kids using kindle
♣ Selective Interpretation
• Two Parts: categorization and inference
• Selective interpretation occurs when consumers are able to perceive the relevance of the brand for them and for their lives.
o Leads to more of a rational response although emotional elements will also continue to accrue
• It involves both categorization of the brand within a product category and inference of the meaning of a brand (the image of the brand).
• categorization has two aspects.
o First we must be able to establish our brand as being the same as other brands in a product category.
o Second, we must be able to establish that our brand is in some way, different from other brands.
• How to draw favorable categorization/inference:
o to draw positive inferences about the meaning and relevance of the brand to their lives
♣ Semiotics involves the brand, a symbol conveying the benefits of the brand and the target consumer who interprets the symbol.
o to reduce the perceived risk in the new brand in an old category or a new brand in a new product category
♣ Types of risk
• Perceived risk which involves the potential for loss in a brand or product category
• Loss could be attributed to loss that financial, performance, physical, social, and psychological (loss of ego)
♣ Two components of risk
• probability of the occurrence of the risk factor
o how likely is something to occur
• the severity of the consequences of the threat factor
o A critical and fundamental way to get consumers to draw a favorable perceptual inference for a brand is to create and maintain a clear and favorable brand image.
♣ Brand image refers to the total and overall perceptions of a brand in the mind of a target consumer over time.
• It could be emotional, rational, or both
♣ Consumer and Marketer Strategies to Reduce Risk
• Consumers on their own will act to reduce their perceived risk in a product category. Some consumer strategies are
o Consumers reduce their risk by seeking more information
♣ Reduces uncertainty
o Consumers reduce risk by acting on information that they already have in a product category.
♣ Being brand loyal
♣ If consumers have learned to be brand loyal in a product category, they will continue to use that info in a product category which has a great deal of inherent risk in the product category
o Consumers use other heuristics (rules of thumb, easy decision tools) than brand loyalty as well.
♣ Consumers want to try out a new brand with the smallest risk possible
• Buying the cheapest brand
• Smaller product=less risk
♣ Consumers reduce their expectations of the brand and thus reduce their disappointment with a brand.
• As a corollary to the above, here are the marketer based strategies to reduce consumers' perceptions of risk:
o Reduce financial risk
♣ Value based price
o Reduce psychological risk
♣ Realistic expectations
o Reduce performance
♣ The correct value-based quality
o Reduce social risk
♣ Show the approval of friends and family
o Reduce physical risk
♣ Safest products, take responsibility
o Create confidence and trust in the brand
♣ More info
♣ Stimulate face to face communication and generate trust
o Summary of the process of the perception
♣ It starts with consumers' selection of the stimuli released by the brand with regard to achieving both selective attention and exposure to the brand.
♣ Next, consumers must be able to organize the various stimuli in the communications of the brand into a coherent whole in every single message from the brand.
♣ Then, consumers must be able to interpret and understand clearly which product category our brand falls into.
♣ Finally, they have to be able to make another clear interpretation involving a positive inference of the relevance of the brand to their lives.
o Perceptions in Marketing
♣ Perceptions and the product
• The "first order of business" in creating a successful brand is to have a clear, unique and desirable product concept for the brand.
o This is the foundational platform for the brand to which all marketing strategies must conform
• consumers' perceptions of our brand should be clear, unique and desirable
• The product concept is a written statement of the brand which describes the total bundle of values provided by the brand as should be perceived by a specific target market in both the long term (say, five years) and the short term (say, one year).
o In this regard, the first "value" (of the bundle of values) is to establish PERCEPTIONS about why and how the brand is the SAME as any other brand in the product.
♣ This is the first sentence of the product statement/concept.
♣ This is a generalization
o The second value to establish is how the brand is different from other brands.
♣ This is discrimination
o This is the second sentence of the product statement/concept. The consumer will probably not see.
♣ It's for internal use.
♣ The product statement/concept will be expressed to consumers though employees
• Notice how this is contrary to what most (even experienced) managers will say. I always hear, "how do we make the brand different?" when the first question in branding should always be, "how can we make consumers perceive that the brand is the SAME as all the other brands in the product category?"
♣ we have to be, first, we have to find out our consumer's needs and be as good as everyone else in providing the basic benefits that consumers look for in the product category
♣ Brands also do generalization when they generalize all the good things from one of their old and trusted brands to one of their new and unknown brands.
• This is called brand leveraging
♣ brand extension. This involves "piggybacking" off the old brand to create from the outset, a good image for the new brand.
♣ The ability to discriminate depends on the individual consumer's ability to perceive just noticeable differences (JND) between brands.
♣ Weber's law states that the change (in absolute terms, not percentage terms) required for a larger size of a brand will be higher than the change required for a smaller size of the brand.
• Perceptions and the Price
o Price is the only p that is quantitative amount that produces revenue
o It is also the only revenue producing P since all the other Ps are spending Ps.
o Price is a perception
o Reference Price and the Notion of Quality
♣ The reference price for a brand item is the price that consumers expect to pay for the item.
♣ the reference price will change the perception of quality in the consumer's mind.
• Quality is here defined as the reliability of a brand or the ability of the brand to perform its stated function consistently for a certain period of time.
o Note also that just like price, perceived quality is also a perception.
• The Relationship of Price and Quality
o there is a positive relationship (positive correlation) between perceived price and perceived quality
o Two conditions
♣ When the consumer has no other information except the price of the brand.
♣ When the consumer trusts the source of the price information
• Perceptions and the Promotion of the Brands
o what a certain consumer wants to have happen (the consequences) in a certain situation from a certain object
o perceived value is conceived as some combination of the brand and the situation in which the consumer finds herself/himself.
o The function of the promotions of the brand are also, thus, to establish the perceived value of the brand based on showing what positive consequences for the consumer can arise from using the brand in a certain situation.
♣ Rational=self interest and words