Consumer Perception & Positioning 2

Question 1

Consumer Imagery

Answer 1

Consumers’ perceptions of all the components in a company’s products, services, and brands

Products/brands have symbolic values for consumers based on the unique benefits that they offer

Question 2

Positioning Process

Answer 2

Defining the market in which the product competes, who the relevant buyers are, and the offering’s competition

Identifying the product’s key attributes and researching consumers’ perception regarding each of the relevant attributes

Researching how consumers perceive the competing offerings on the relevant attributes

Determining the target market’s preferred combination of attributes

Developing a distinctive, differentiating, and value-based positioning concept that communicates the applicable attributes as benefits

Creating a positioning statement focused on the benefits and value that the product provides.
- Use it to communicate with the target audiences

Question 3

Umbrella Positioning

Answer 3

A statement or slogan that describes the benefit of the company’s offering
- May not refer to a specific product

Question 4

Repositioning

Answer 4

Process by which a company changes the distinct image and identity of its brand

Companies do so when consumers get used to the original positioning and no longer stands out

Question 5

Other Types of Positioning

Answer 5

Premier Positioning:
- Focuses on the brand’s exclusivity

Key Attribute:
- Positioning is based on a brand’s superiority on relevant attributes

Question 6

Positioning Statement

Answer 6

For [target segment], [brand] is the [frame of reference] that [point of difference] because [reason to believe].

Target Segment:
- Geographic, demographic, behavioral, psychographic segmentation

Brand:
- Can specify the product line or service

Frame of Reference:
- The category you are competing with

Point of Difference:
- Competitive advantage that differentiates the company (connected to the target segment’s need)

Reason to Believe:
- Evidence to back up you POD

Question 7

Perceived Risks

Answer 7

Consumer purchase decisions are determined by the degree of risk that consumers perceive and their tolerance for risk

Question 8

Types of Perceived Risks

Answer 8

Functional Risk:
- Product will not perform as expected

Physical Risk:
- Product can harm self and others

Financial Risk:
- Product will not be worth its cost

Psychological & Social Risks:
- Poor product choice will bruise the consumer’s ego

Time Risk:
- Time spent in product search may be wasted if the product does not perform well

Question 9

Handling Risks

Answer 9

How consumers handle risk will differ by their own individual strategy:

• Seek information to increase knowledge
• Remain loyal to a tried-and-true brand
• Rely on store image (price-quality relationship)
• Seek reassurance through money-back guarantees, warranties, free trials