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BASES FOR SEGMENTATION: BENEFIT SEGMENTATION:Intrinsic Cues

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Consumer Psychology (PSY - 514)
VU
Lesson 15
BASES FOR SEGMENTATION:
BENEFIT SEGMENTATION
1. Benefit Segmentation
Marketers and Advertising Executives constantly try to identify one most important benefit of their product. e.g.
Zaikay ka Naya Andaaz
Dimaagh ki batti ko ropshan kar day
A segmentation study identifying what drives consumers' preferences identified the five strategic brand benefits:
Functional (quality)
Value for money
Social Benefit
Positive Emotional Benefit
Negative Emotional Benefit (Cigarettes)
1. Functional Benefit (Quality)
Consumers often judge the quality of a product or service on the basis of a variety of informational cues that they
associate with the product.
These cues may be:
1. Intrinsic Cues
2. Extrinsic Cues
1. Intrinsic Cues
Cues that are intrinsic concern the physical features of a product itself, such as size, color, flavor or aroma. In
some cases consumers use physical characteristics (e.g. the flavor of ice-cream or cake) to judge product quality
Consumers like to believe that they base their evaluations of product quality on intrinsic cues because that enables
then to justify their product decisions as being rational or objective product choices
2. Extrinsic Cues
Evaluating the product on the basis of cues that are outside the product itself. Extrinsic cues may include:
packaging, pricing, advertising, peer pressure, brand image, manufacturer's image, retail store image or even
country of origin. For Example: Most Cola drinkers can't differentiate between the tastes of different Colas. They
base their preferences on external cues
2. Value for Money
Value of Money is related with the price of the product. How consumers perceive price as high, low or fair?
Consumers' Perception of Price
Consumers pay attention to prices paid by others. No one is happy knowing that S/he paid the price twice as
much for an airline ticket than the next person. Price unfairness affects consumer's perception of product value
and ultimately the willing ness to buy.
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Consumer Psychology (PSY - 514)
VU
Two types of reference prices are important to understand the consumers' perception of price
Reference Price
Internal reference Price
External reference Price
Reference Price
Any price that consumer uses as a basis for comparison in judging other prices
Internal reference Price
Prices (or price ranges) retrieved by the consumers from the memory
External reference Price
External Reference Price is in reference to prices elsewhere.
3. Social Benefit
Some researchers associate social benefit with the concept of social class. Social class is often measured in terms of
social status. Status is frequently thought of as relative ranking of members of each social class in terms of specific
status factors
Social Comparison Theory
Individuals quite normally compare their own material possessions with material possessions owned by others in
order to determine their relative social standing. In a marketing society status is often associated with consumers'
purchasing power. Individuals with greater purchasing power or greater ability to make purchases have greater
status. Downward Comparison: comparing with someone worse off. Upward Comparison: comparing with
someone better off
4. Positive and Negative Emotional Benefit
Positive Emotional Benefit
Needs, desires or wants may lead to goals that are positive or negative. A positive goal is one towards which the
behavior is directed. This is often called the approach object. A middle aged woman with a positive goal of fitness
may join a health club to work out regularly
Negative Emotional Benefit
A negative emotional benefit is one from which behavior is directed away and is thus referred to as an avoidance
object. A husband who views getting fat as a negative objective may join health club to guide his exercise
2. Changing Lifestyles
Also play an important role in determining the product benefits that are important to consumers and provide
marketers with new opportunities for new products and services. The microwave Owen served a perfect solution
to the needs of dual income homes, where both husband and wife do the jobs that leaves them with little time to
do their cooking.
3. Various Brands within One Product Category
Benefit segment may be used to position various brands within the same product category. The classic case of
successful benefit segmentation is tooth paste:
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Consumer Psychology (PSY - 514)
VU
If the consumers are socially active they want a toothpaste that can deliver cleaner teeth and fresh breath
If they smoke they want a toothpaste that fights stains
If disease prevention is their major focus they want a tooth paste that will fight germs
If they have children they want a toothpaste that will lower their dental bills
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Table of Contents:
  1. INTRODUCTION TO CONSUMER PSYCHOLOGY:Consumer Behavior
  2. INTRODUCTION TO CONSUMER PSYCHOLOGY:Consumer research
  3. INTRODUCTION TO CONSUMER PSYCHOLOGY:Marketing Mix, Product, Price
  4. INTRODUCTION TO CONSUMER PSYCHOLOGY:Customer Value, Perceived Value
  5. VALUE AND RETENTION FOCUSED MARKETING AND CONSUMER DECISION MAKING PROCESS
  6. CONSUMER RESEARCH:Quantitative Research, Qualitative Research
  7. MAJOR STEPS IN CONSUMER RESEARCH PROCESS:Design of Primary research
  8. QUANTITATIVE RESEARCH DESIGNS & DATA COLLECTION METHODS
  9. QUANTITATIVE RESEARCH DATA COLLECTION TECHNIQUES:ATTITUDE SCALES
  10. QUALITATIVE RESEARCH DESIGNS & DATA COLLECTION METHODS
  11. CUSTOMER SATISFACTION MEASUREMENT, SAMPLING, AND DATA ANALYSIS AND REPORTING
  12. MARKET SEGMENTATION AND ITS BASES:Geographical Segmentation
  13. BASES FOR SEGMENTATION: DEMOGRAPHIC SEGMENTATION PSYCHOGRAPHIC SEGMENTATION
  14. BASES FOR SEGMENTATION: SOCIOCULTURAL SEGMENTATION USE RELATED SEGMENTATION USAGE SITUATION SEGMENTATION
  15. BASES FOR SEGMENTATION: BENEFIT SEGMENTATION:Intrinsic Cues
  16. BASES FOR SEGMENTATION: HYBRID SEGMENTATION STRATEGIES
  17. MARKET SEGMENTATION IMPLEMENTING SEGMENTATION STRATEGIES ENVIRONMENTAL INFLUENCES CULTURE
  18. HOW CULTURE IS LEARNT ENVIRONMENTAL INFLUENCES:Formal Learning
  19. CULTURE AND ITS MEASUREMENT ENVIRONMENTAL INFLUENCES
  20. MEASUREMENT OF CULTURE ENVIRONMENTAL INFLUENCES:Consumer Fieldwork
  21. SUBCULTURE CHAPTER 4: ENVIRONMENTAL INFLUENCES
  22. AGE AND GENDER SUBCULTURE CHAPTER 4: ENVIRONMENTAL INFLUENCES
  23. BASES FOR SEGMENTATION: BENEFIT SEGMENTATION:Market Segmentation
  24. SOCIAL CLASS CHAPTER 4: ENVIRONMENTAL INFLUENCES:Occupation
  25. CONSUMER SOCIAL CLASSES CHAPTER 4: ENVIRONMENTAL INFLUENCES:Affluent Consumer
  26. CONSUMER SOCIAL CLASSES CHAPTER 4: ENVIRONMENTAL INFLUENCES:Membership Group
  27. CONSUMER SOCIAL CLASSES CHAPTER 4: ENVIRONMENTAL INFLUENCES:Shopping Groups
  28. UNDERSTANDING PERSONALITY CHAPTER 5: INDIVIDUAL DETERMINANTS OF CONSUMER BEHAVIOR
  29. CONSUMER PERSONALITY, TRAIT THEORY AND SELF IMAGES
  30. CONSUMER MOTIVATION:Needs, Goals, Generic Goals
  31. UNDERSTANDING LEARNING:Intentional and Incidental Learning, Implications for Marketers
  32. INSTRUMENTAL CONDITIONING, INFORMATION PROCESSING AND MEMORY
  33. ATTITUDES:Characteristics of Attitudes, Attitudes have consistency
  34. ATTITUDE FORMATION AND CHANGE:How attitudes are learned?
  35. ATTITUDE CHANGE STRATEGIES:Resolving two conflicting attitudes
  36. INTRODUCTION TO CONSUMER DECISION MAKING:Decision Complexity
  37. Problem Recognition, Search and Evaluation and Decision and Purchase
  38. Decision and Purchase:Consumer Decision Rules, Output, Relationship Marketing
  39. Decisions Related to Post Purchase:Product Set up and Use
  40. Marketing Implications of Decisions Related to Post Purchase:Understanding
  41. Post Purchase Evaluation:Determinants of Satisfaction, Consumer Complaint Behavior
  42. Post Purchase Dissonance:Dissonance Reduction, Marketing Implications
  43. Consumerism:Roots of Consumerism, The Nature of Consumerism
  44. Consumerism Issues and Responses:Environmental Concerns, Consumer Privacy
  45. Review Consumer Psychology Course:Consumer Research, Consumerism