Understanding Consumer Choice by Nic Hall RI UK, Bogota 30th. July 2001

Understanding Consumer Choice

Affinity Performance

Price

Bogota 30th July 2001 Presented by Nic Hall Research International UK

Introduction

Peter Brabeck, Global CEO, 1997

Why do we need to understand consumer choice?

Nestlé

" Market research can help…….

• identify new markets and business

opportunities.

• ensure better insight into the consumer

• create a much better understanding of the

relationship of our consumers with our

products".

Corporate Purpose Booklet

“Our purpose is to…….

• meet the everyday needs of people everywhere

• anticipate the aspirations of our consumers and customers

• respond creatively and competitively

We must

• anticipate their changing desires, needs and tastes

• offer them better products”

Why do we need to understand consumer choice?

Unilever

Bottom up

Brand Consumer

The category

Top down

To understand consumer choice,

we need to understand the

Consumer Brand Interaction

Consumer Brand Interaction

Need Category/Brand

choice (response)

Reasons for choice

(gratification)

Occasion

Brand Positioning

Marketer can

influence a

brand’s

functional and

emotional

benefits

Marketer can

influence a

brand’s

personality

Consumer

personality

Fixed

framework

Disposition

Attitudes

Abilities

Values

Intellectual

Social

Emotional

Moral

Brand Consumer Interaction

Brand Consume

r Positioning

Fam

ilia

rity

Functional/

emotional

benefits

Marketer can

influence a

brand’s

functional and

emotional

benefits

Consumer builds up an

attachment based on

satisfying what their

functional and emotional

needs are

Need

fulfilment


attachment based on the

brand complementing or

matching their personality

Personality

match

Personality Marketer can

influence a

brand’s

personality

EQUITY

Co

mm

un

icati

on


Equity

Brand B

The equity of the brand can be modified according to

the extent which it satisfies different needs

Need 1

Need 2

Need 3

Need 4

EQUITY Brand B (1)

EQUITY Brand B (2)

EQUITY Brand B (3)

EQUITY Brand B (4)

We therefore must

measure brand

equity and place it

back into the

context of the

category needs and

‘rules’

EQUITY Brand A (1)

EQUITY Brand C (1)

EQUITY Brand B (1)

The equity of Brand B is then

judged in the context of the

other brands that compete with

it on that same need


Brand

Choice

Relative

Value

Value Price

Value Price

Price Value

The consumer then makes a

value decision trading off the

brand’s overall equity against

price to establish its value

Consumer

Final choice is influenced by the

consumers general attitudes

and their attitudes specific to

the category

Triggers/

barriers


Brand Consumer Positioning

Fam

ilia

rity

Functional/

emotional

benefits

Marketer can

influence a

brand’s

functional and

emotional

benefits


attachment based on

satisfying what their

functional and emotional

needs are

Need

fulfilment


attachment based on the

brand complementing or

matching their personality

Personality

match

Personality

Marketer can

influence a

brand’s

personality

EQUITY Brand B

Branding Consumer understanding

Co

mm

un

icati

on

Awareness

Understanding

Insight

Insight

no one

else has

The goal of consumer choice research

Information

Consumer

Understanding

Understanding the psychology of

consumer choice

Maslow’s hierarchy of needs

Basic hunger & thirst Physiological

Safety, survival & security Safety

Love & acceptance Belonging

Esteem & status Esteem

Self-

actualisation

Self

Maslow’s hierarchy of needs

Basic hunger & thirst Physiological

Safety, survival & security Safety

Love & acceptance Belonging

Esteem & status Esteem

Self-

actualisation

Self

Poor

Rich

?

Inferiority complex

Low self

esteem

Adler - Self Esteem

Ego, superiority

& individuality Affiliation &

conformity

Social feelings -

feminine

obedience &

submissiveness

Personal power -

masculine

domination &

superiority

Goal is moving to a better way of life

Emphasis on having control, choices and values

Freud - Pleasure Principle

Conscious Unconscious

Drives

Instincts

Memories

Trauma

The unconscious

is the source of

our motivations

Superego

- a record of things to avoid

and strategies to take. Usually

developed by age 7

Expression of sexual pleasure, hunger, thirst - act as powerful unconscious drives

Repression of pleasure - controls anxiety and guilt

Emphasis on lack of control - the demand

to take care of needs immediately.

Conscious

Unconscious

Freud - Pleasure Principle

How do these ways of making choices

impact on our personality?

Eysenck - personality factors

Introverted

Extroverted

Stable Unstable

Stable-introvert

Passive

Reliable

Even-tempered

Calm

Unstable-introvert

Rigid

Quiet

Anxious

Moody

Unstable-extrovert

Restless

Excitable

Changeable

Touchy

Stable-extrovert

Carefree

Easy going

Responsive

Talkative

Personality differences grow out of our genetic inheritance

Human responses - The Heylen Model

Biological Drive (Nature)

Social Drive

(Nurture)

Human behaviour strives

to satisfy both these needs

Human responses - The Heylen Model

Active

Ego-Assertive

Receptive

Socio - Affiliative

Expression

(Externalisation)

Repression

(Internalisation)

Warmth

Enthusiasm

Harmony

Vigour

Potency

Vitality

Cool

Calculating

Intelligence

Dominance

Insecurity

Distance

Submissiveness

Active

Ego-Assertive

Receptive

Socio - Affiliative

Expression

(Externalisation)

Repression

(Internalisation)

Warmth

Enthusiasm

Harmony

Vigour

Potency

Vitality

Cool

Calculating

Intelligence

Dominance

Insecurity

Distance

Submissiveness

Brand personality mirrors consumer personality?

Energetic

Fun Cheerful

Friendly

Reliable

Cautious

Impulsive Straightforward

Up to date

Genuine

Expert

Advanced

Respected

Confident

Helpful

Trustworthy

Strong

Proud

Honest

Realistic

Prestigious

Imaginative

Lively

Trend setting

Gentle

Intelligent

Caring

Quiet

Exciting

Sophisticated

Approachable

Authoritative

Ego Affiliation

Conformity

Power & dominance

Status and control

Warmth & love

Friendship & caring

Expression

Repression

Active &

optimistic

Playful &

hedonistic

Passive &

pessimistic

Fearful &

reassurance-seeking

Sociable,

happy,

Carefree

Calculating,

rationally driven

seeking the best

Young, trendy

fashionable,

individualistic,

rebellious

Brand personality may not mirror consumer personality

Submissive,

seeking

respectability

and approval

Person

Brand

Brand

Brand

Recommended by

dentist

Day long protection

Specially for the face

Removes burnt-on

residue

Established brand

No harmful

ingredients

Gentle on clothes

Attractive packaging

Pleasant perfume

Nice taste

Suitable for the

family

Suitable for the

whole body

Innovative

packaging

Keeps coloureds

looking bright

Contains fluoride

Scientifically advanced Good value for money

Comfortable to apply

Easy to use

Suits sensitive skin

Whitens my teeth

Kills germs

What about rational product attributes?

Market Dynamics Mapping

A structured way to look at the

interaction between consumers

and the brands they use

Introduction

Why Market Dynamics Mapping?

Market - Consumers, who they are, what their habits are, what

their beliefs, attitudes and values are, what they use etc

Mapping - Brands and how they are positioned relative to one

another, market gaps and opportunities

Dynamics - the interaction between these

Why did we develop this methodology?

• Client’s increased focus on global power brands necessitates

the use of common methods for comparing consumers and

brands internationally

• We find that most clients conduct usage and attitude studies but

tend to use a number of different suppliers and methodologies

• It is therefore difficult to achieve synergy across markets and to

gain cross-category learning

• Thus, we feel there is a clear demand for a structured way to

understand consumers, their habits, their needs, the brands they

choose and their attitudes

What the approach is trying to achieve?

• A coherent marketing strategy for brands / positionings which may

be compared cross country and cross category

• Through:

– Establishing a clear segmentation of each category in terms of

consumer needs

– Enable Client brands / positionings to be matched against the

segments

– Establishing the drivers of the category needs and the brands

preferences

– Understanding the opportunities in the market.

• All in a way that can be replicated across countries and across

categories

PERSONALITY

DEMOGRAPHICS/

CHARACTERISTICS

PERFORMANCE

PRODUCT/SERVICE

BRAND

IMAGE BRAND

BENEFITS

OCCASION BASED

PREFERENCE

(EQUITY)

VALUES

BELIEFS

NEEDS

AFFINITY

PRICE

RELATIVE

VALUE

TRIGGERS/

BARRIERS

USAGE

PROBLEMS

SATISFACTION

THE CONSUMER THE BRAND

THE OVERALL

FRAMEWORK M

E

D

I

A

CHANNELS

SHOPS

CATALOGUES

THE INTERNET

FUNCTION

LOOK AT C LOOK AT B LOOK AT A

CHOOSE C

PERSONALITY

DEMOGRAPHICS/

CHARACTERISTICS

PERFORMANCE

PRODUCT/SERVICE

BRAND

IMAGE

BRAND

BENEFITS

OCCASION BASED

PREFERENCE

(EQUITY)

VALUES

BELIEFS

NEEDS

AFFINITY

PRICE


RELATIVE

VALUE

TRIGGERS/

BARRIERS

CHOOSE C

USAGE

PROBLEMS

SATISFACTION


MARKET

DYNAMICS

MAPPING M

E

D

I

A

CHANNELS

SHOPS

CATALOGUES

THE INTERNET

BRAND MAPPING NEEDS BASED SEGMENTATION

PREDICTIVE MODEL OF CONSUMER BEHAVIOUR

FUNCTION

What the approach is trying to achieve?

• A coherent marketing strategy for brands / positionings which may

be compared cross country and cross category

• Through:

– Establishing a clear segmentation of each category in terms of

consumer needs

– Enable Client brands / positionings to be matched against the

segments Brand Mapping

– Establishing the drivers of the category needs and the brands

preferences Predictive Model

– Understanding the opportunities in the market.

• All in a way that can be replicated across countries and across

categories

Needs Based Segmentation

Brand Mapping

PERSONALITY

DEMOGRAPHICS/

CHARACTERISTICS

PERFORMANCE

PRODUCT/SERVICE

BRAND

IMAGE

BRAND

BENEFITS

OCCASION BASED

PREFERENCE

(EQUITY)

VALUES

BELIEFS

NEEDS

AFFINITY

PRICE


RELATIVE

VALUE

TRIGGERS/

BARRIERS

CHOOSE C

USAGE

PROBLEMS

SATISFACTION


MARKET

DYNAMICS

MAPPING M

E

D

I

A

CHANNELS

SHOPS

CATALOGUES

THE INTERNET

BRAND MAPPING

FUNCTION

Brand mapping

• Two options are possible

– the map is based only on the image of the

brands

– the map is based the consumer who uses

the brands and on the image of the brands

themselves

• Both approaches have advantages and

disadvantages

Brand Mapping - Based on brand image

• The aim is to map brands into a theoretical framework which

represents ‘The Human Condition’ in terms of how people

choose brands

• Data collected for brand mapping include functional attributes

and personality attributes. This data should collected about

brands. Personality attributes are collected at parent and variant

level, functional attributes at variant level only

• Personality attributes should be kept constant across

categories, although functional ones will differ. Select attribute

set to represent theoretical framework on next slide

• RI has conducted extensive Quantitative work in around 50

markets to develop and validate stimulus material for this

technique. The material does not need further development for

new markets

A Theoretical Framework For Mapping

Human

Drives

Instincts

Needs

EXPRESSION

(EXTROVERSION)

REPRESSION

(INTROVERSION)

SOCIAL

AFFILIATION

EGO

ASSERTIVENESS

Energetic

Fun Cheerful

Friendly

Serious

Reliable

Cautious

Impulsive Straightforward

Up to date

Genuine

Expert

Advanced

Respected

Confident

Helpful

Trustworthy

Strong

Proud

Honest

Realistic

Prestigious

Imaginative

Lively

Trend setting

Gentle

Intelligent

Caring

Quiet

Exciting

Sophisticated

Approachable

Authoritative

Brand image mapping - The output

• The result will be a map in which the brands

are represented in this personality space

• Since the space will be very similar in every

category, it allows you to compare brand

positions across categories or across

countries

• The axes names are based on looking at the

personality attributes and functional attributes

in each quadrant and devising qualitative

descriptions of each dimension

Example of real data from a study done in Japan

Feminine

Traditional

Natural

Ordinary

Warm

Special

Protective

Powerful

Pampering Luxurious

Helpful

Friendly

Dynamic

Dependable

Cheerful

Caring

Authoritative

Youthful

Unique

Trustworthy

Trend setting

Seductive/sexy

Professional/expert

Modern

International

Innovative

Fun

Confident

Fashionable

Dimension 1 (59.0% variance explained)

Dim

en

sio

n 2

(1

5.7

% v

ari

an

ce

ex

pla

ine

d)

Scale 0.12

Sca

le 0

. 2

FRIENDLY/VALUE

TRADITIONAL

SAFE &

RELIABLE PROVEN

SIMPLICITY ENHANCED

PROGRESSIVE

Brand Y

Brand M

Brand K Brand S

Brand O

Brand C

Brand T

Brand D

Brand H

Brand P

Brand E

Brand L

Brand N

Brand B

Merit

Brand J

Brand Q

Brand F

Brand A Brand G

PLEASURE

Brand Z

The Brand Personality Territory

Feminine

Traditional

Natural

Ordinary

Warm

Special

Protective

Powerful

Pampering Luxurious

Helpful

Friendly

Dynamic

Dependable

Cheerful

Caring

Authoritative

Youthful

Unique

Trustworthy

Trend setting

Seductive/sexy

Professional/expert

Modern

International

Innovative

Fun

Confident

Fashionable

Dimension 1 (59.0% variance explained)

Dim

en

sio

n 2

(1

5.7

% v

ari

an

ce

ex

pla

ine

d)

Scale 0.12

Sca

le 0

. 2

FRIENDLY/VALUE

TRADITIONAL

SAFE &

RELIABLE PROVEN

SIMPLICITY ENHANCED

PROGRESSIVE

Brand Y

Brand M

Brand K Brand S

Brand O

Brand C

Brand T

Brand D

Brand H

Brand P

Brand E

Brand L

Brand N

Brand B

Merit

Brand J

Brand Q

Brand F

Brand A Brand G

PLEASURE

Brand Z

Sex and Fashion

Sex and Fashion • Up-market, well-educated, young or young at heart

• Frivolous and fashion-oriented, care about latest trends and

about how they look

• Into hair colour and styling--do a lot to look good

• To them, beauty is about smelling nice, having good skin, being

in harmony with self and, above all, being appealing to the

opposite sex

• Like fun and sexy hair brands like Fructis, Herbal Essences,

Salon Selectives

Why do we want to identify Territories? - The ‘Daisy’ theory of market evolution

Big central brand. Competitors vying

for core functional benefits versus price

Differentiated brands take share from centre

Increased spending and fragmentation

Consumers begin to express their choices in

different ways. New dimension in market develops

Highly fragmented. High spending. No central position.

Brand personality drives differentiation

Brand Mapping - Based on the consumers

who use the brands

• The aim is to map brands into a theoretical framework which

represents ‘The Human Condition’ in terms of how people

choose brands

• The map is consistent and stable across countries and

categories and comparable with the theoretical framework

• Data collected for brand mapping include functional attributes

and personality attributes. This data should collected about

brands, and people who use the brands. Personality attributes

are collected at parent and variant level, functional attributes at

variant level only

• RI has conducted extensive Qualitative and Quantitative work in

UK and India to develop and validate stimulus material for this

technique. The material needs to be developed for new markets

A Theoretical Framework For Mapping

Human

Drives

Instincts

Needs

EXPRESSION

(EXTROVERSION)

REPRESSION

(INTROVERSION)

SOCIAL

AFFILIATION

EGO

ASSERTIVENESS

Power Seekers

Vitality Seekers

Freedom Seekers

Acceptance Seekers

Harmony Seekers

Comfort Seekers Image Seekers

Control Seekers

Verbal descriptions of each type of

consumer personality

“I thrive on trying new experiences, I would describe myself as

fearless and adventurous and feel that more often than not, rules

are made to be broken. It is more important to enjoy the present

moment than to think about the past or the future”

“I thrive on the challenge of tackling something new and different

and have a reputation for saying what I think, simply and directly.

On most occasions I believe the end result justifies the means, even if

getting the job done means hurting other people’s feelings”

VITALITY SEEKERS

POWER SEEKERS

“I get on best with logical, analytical people and less well with

spontaneous or emotional people. In conversations I find that

often I am the most dispassionate and objective. Protocol and

formal procedures are important to me and I expect respect from

those that are junior to me”

“I pay meticulous attention to detail before coming to a conclusion

and tend to be a perfectionist. I would say that I find it difficult to

produce ideas or thoughts on impulse and am keen on self discipline

such as watching my diet, taking regular exercise, sticking to a fixed

routine etc. I tend to have distant or formal relationships with people”

IMAGE SEEKERS

CONTROL SEEKERS



“I am more likely to adopt a low profile than to take the lead or

stand out in a group. It worries me if I have to rush something

through or make a quick decision. I would prefer time to think

something through carefully, quietly and on my own first before

discussing it with anyone else”

“I am careful not to jump to conclusions too quickly, and listen to

other people’s point of view before putting my own forward. I

believe in the principle that it is better to give than to receive and

enjoy doing things for others”

COMFORT SEEKERS

HARMONY SEEKERS



“I would say that on the whole I would do more listening than talking,

and how I make others feel about themselves and how they also

feel about me is important to me. I believe that it helps to share a

problem and talk things through with other people. When things go

wrong, I am happy to shrug it off and ‘put it down to experience’.

I prefer informality to formality”

“I prefer to respond to events on a spontaneous, flexible basis

rather than plan things out in advance. I dislike routine and

tend to be very open with how I am feeling and find quiet,

thoughtful people make me feel uneasy. I am usually one of

the people who puts life into a party

ACCEPTANCE SEEKERS

FREEDOM SEEKERS



The qualitative validation

• The aim of the research was to develop and validate 8 stimuli to

represent the positions in the theoretical framework

• We have developed two forms of stimuli: verbal & collages. The verbal

statements remain fixed, whilst the visual representation of these

changes by market

• The advantage of verbal stimuli is that they are less liable to variation

in interpretation, and can be readily used across many markets and

categories

• RI has much experience in the use of collages to capture values (e.g.

BrandSight gallery for Brand Personality). We believe that collages

reduce the bias inevitably inherent for some people with some

individual pictures

• In-depth interviews with consumers should be conducted in order to

develop a set of collages for each market from a series of pictures

Brand Sight Gallery example

‘Imaginative’

Vitality Seekers

EXAMPLE COLLAGE

What the Qualitative aims to achieve

Power Seekers

Vitality Seekers

Freedom Seekers

Acceptance Seekers

Harmony Seekers

Comfort Seekers

Image Seekers

Control Seekers

The Quantitative Validation

• The next step is to quantitatively validate the space created by the

qualitative stimulus

– To validate that the space is consistent and comparable with the

theoretical model

• Respondents are shown the 8 collages and asked to think about

their neighbour

– Which is most like their neighbour

– Which is least like their neighbour

– Rank intermediate collages from most like their neighbour to

least like

• This provides a matrix of similarities and differences between the

stimuli

– These can be mapped using MDS

– MDS is the simplest mapping technique of all - it just looks to

position points in space to preserve distances between them

MDS Example

A B

C D

If ….

A is close to B

B is close to C

B is close to D

A is far from C

A is close to D

C is far from D

The Quantitative output must successfully validate

the collages - (Based on next door neighbour)

Power Seekers

Vitality Seekers

Harmony Seekers

Freedom Seekers

Control Seekers

Image Seekers

Acceptance seekers

Comfort Seekers

Real data from the UK

Mapping with a Gravity Model

• We need a model where the collages are fixed in

space i.e. the fundamental axes do not change

• Brands and attributes are then plotted in that space -

a gravity model is most appropriate for this

• To locate a brand or attribute, starting from the centre

of the map, the brand or attribute is pulled towards

each of the collages. The amount by which each

collage pulls the brand / attribute depends on how

many people associated that brand / attribute with the

collage

Power Seekers 12%

Vitality Seekers 8%

Harmony Seekers 10%

Freedom Seekers 5%

Control Seekers 2%

Image Seekers 15%

Acceptance seekers 30%

Comfort Seekers 20%

Example Brand

Example of how a brand plots with a

Gravity Model

Plotting in the brand Personality

and brand Function attributes

• For each brand we have asked

– what is its personality using a series of personality

words. Try to keep the personality words the same

across categories

– what is its function, using attributes relevant to the

category

• The brand image (personality and function) is plotted

into the map as the same way as the brand

Brand Personality and Brand Function

POWER SEEKERS

VITALITY SEEKERS FREEDOM SEEKERS ACCEPTANCE SEEKERS

HARMONY SEEKERS

COMFORT SEEKERS CONTROL SEEKERS IMAGE SEEKERS

POWER SEEKERS


HARMONY SEEKERS


Example Brand

Powerful

Authoritative

Responsible

Caring Helpful

Trustworthy

Approachable Confident

Respected

Advanced

Traditional

Fun

Expert

Gentle

Up-to-date

Friendly

Ordinary Protective

Dependable

Serious

Energetic

Fruity Fresh

Full flavour

Mild/smooth

Natural Full bodied

Aromatic

Exotic

Bitter Weak

Light

Strong

Personality of the brand versus

personality of the user of the brand

• In the questionnaire we collect

– the personality of the brand itself

– the personality of people that use the

brand

• These are not necessarily the same thing,

particularly for the more aspirational brands

• The difference in the two positions reveals a

lot about the differences between the brand

and the people that use it

Personality of the Tea Brands UK Tea brands - brands fitted using gravity model

Brooke Bond D

Brooke Bond Choicest Blend

London Herb and Spice

PG Tips

Tetley

Twinings

Typhoo

Yorkshire Tea

Co-op Sainsburys

Tesco

POWER SEEKERS


HARMONY SEEKERS


POWER SEEKERS


HARMONY SEEKERS



Personality of the Users of Tea brands UK Tea brands - brands fitted using gravity model

Tesco user Sainsburys user

Co-op user

Yorkshire Tea user

Typhoo user

Twinings user

Tetley user

PG Tips user London Herb and Spice user

Brooke Bond Choicest Blend user

Brooke Bond D user POWER SEEKERS


HARMONY SEEKERS


POWER SEEKERS


HARMONY SEEKERS



Comparing Brand and User Personality UK Tea brands - brands fitted using gravity model

Brooke Bond D

Brooke Bond Choicest Blend

London Herb and Spice

PG Tips

Tetley

Twinings

Typhoo

Yorkshire Tea

Co-op Sainsburys

Tesco

POWER SEEKERS


HARMONY SEEKERS


POWER SEEKERS


HARMONY SEEKERS


Tesco user Sainsburys user

Co-op user

Yorkshire Tea user

Typhoo user

Twinings user

Tetley user

PG Tips user London Herb and Spice user

Brooke Bond Choicest Blend user

Brooke Bond D user POWER SEEKERS


What does the brand mapping tell us?

• We have a stable, common space into which brands can be

mapped, showing both

– their personality and functional characteristics

– differences between the personality of the brand and the

personality of the user

• The space fits the theoretical model of human personality

• It is applicable across categories and countries

• It is descriptive of the market but tells you nothing about

what’s important or where is a ‘good’ place on the map

• So we need to show ‘hot spots’ on this map

A Predictive Model of Consumer Behaviour

PERSONALITY

DEMOGRAPHICS/

CHARACTERISTICS

PERFORMANCE

PRODUCT/SERVICE

BRAND

IMAGE

BRAND

BENEFITS

OCCASION BASED

PREFERENCE

(EQUITY)

VALUES

BELIEFS

NEEDS

AFFINITY

PRICE


RELATIVE

VALUE

TRIGGERS/

BARRIERS

CHOOSE C

USAGE

PROBLEMS

SATISFACTION


MARKET

DYNAMICS

MAPPING M

E

D

I

A

CHANNELS

SHOPS

CATALOGUES

THE INTERNET

PREDICTIVE MODEL OF CONSUMER BEHAVIOUR

FUNCTION

• We need to:

Understand what factors drive brand preference

Understand how the brands perform on the factors that drive

brand preference

Through these, to understand and identify current brand health

& strength

Identify opportunities to strengthen the brand

Pinpoint competitive threats

Monitor the effectiveness of brand strategy and marketing

activity

Use this model to understand what are the ‘hot spots’ on the

map

We must establish the Drivers of the Category and the Brands

in order to Understand What Matters in the Market

To do this we use Equity EngineSM

• Equity Engine is an RI proprietary

Technique, which is used to answer

these objectives

• To date, RI has conducted 300 Equity

Engine models, on 3000 brands, in 36

countries (in 45 categories)

Category Experience

Air Travel

Automotive

Band Aids

Batteries

Beer

Bottled Water

Built-In Ovens

Chocolate

Cigarettes

Cleaning

products

Coffee

Computers

Cordials

Cooking oils

Credit cards

Deodorants

Detergents

Dog Food

Fabric

Conditioner

Games Consoles

Healthcare

Ice cream

Insurance

Kitchen roll

Lubricants

Mobile Phones

Motor Parts

Olive oils

Petrol Products

Retail

Sausages

Sauces

Soft Drinks

Shampoo

Supermarkets

Telecoms

Tools

Toothpaste

Vodka

Washing

Machines

Whisky

Yogurt

Country Experience

Argentina

Australia

Austria

Belgium

Brazil

Canada

Chile

China

Colombia

Czech Republic

Denmark

Finland

France

Germany

Greece

Holland

Hong Kong

India

Indonesia

Israel

Italy

Japan

Kenya

Mexico

New Zealand

Norway

Poland

Portugal

Puerto Rico

Russia

Singapore

Spain

Sweden

UK

Uruguay

USA

Explaining the Equity EngineSM Model

• What is Brand Equity?

• What is Brand Value?

• Understanding what drives brand Equity?

• A quantified measure of the overall strength

of a brand in terms of its emotional and

physical benefits as perceived by the

consumer

• Equity can therefore be measured by a

brand’s perceived performance AND the

consumer’ s ‘affinity’ with the brand

What is Brand Equity?

‘Equity’ we define as the sum total of the perceived

benefits of a branded proposition to an individual, in

the absence of price

Fundamental separation of two components of

Equity:

Brand

Equity

Emotional

associations

Functional

associations

What Contributes to Brand Equity?

$ Physical

product

Branding

What is Brand Value?

• The value of a brand to a consumer is a function

of its Equity (driven by Affinity and perceived

performance) relative to price

• Equity is therefore considered to be independent

of the price of the brand

BRAND

EQUITY

AFFINITY

Emotional

PERFORMANCE

Functional

BRAND

VALUE

PRICE

Conceptual Framework

The Affinity Model of Brand Emotion

Unlike performance criteria (which obviously vary

by category), we use a single model of brand

emotion that experience has shown works globally

Equity Engine

This provides a common framework for inter-

country and inter-category comparisons and

benchmarking

Affinity

The emotional ‘closeness’ of a brand to a person,

together with its authority and potential for the individual

Authority Identification Approval

In the early days, of product ‘quality’ -

measure of

branding was an assurance generally interpreted as a functional performance.

1. Authority - where the brand ‘comes from’

Authority

Long standing reputation and leadership

Heritage

The brand as something one can trust or rely on

Trust

Leading edge, at the forefront of new development

Innovation

2. Identification

“I am cast upon a horrible desolate

island; void of all hope of recovery. I

am singled out and separated, as it

were, from all the world, to be

miserable. I am divided from

mankind, a solitary; one banished

from human society. I have no soul

to speak to or to relieve me.”

Robinson Crusoe, by Daniel Defoe

2. Identification - the ‘relevance’ of the brand to

the individual

Identification

Brand with which the

consumer feels comfortable

emotionally

Bonding

Understanding the consumer

as an individual, knows what

he/she needs

Caring

Association with happy

personal memories Nostalgia

Brands also act as a social signal to others

3. Social Approval - what the brand ‘says’ to

others

Approval

Upmarket, upscale or

premium Prestige

Seen as a ‘good choice’ by

peers Acceptability

Used or approved by experts

or ‘people I respect’ Endorsement

Performance: Category specific issues

Could include:

• Product features

• Functional benefits

• etc.

• E.g.:-

– Gets whites really white

– Has a branch near where I work

– Tastes like butter

– Long lasting fragrance

Relative contributions of Affinity and Performance

vary considerably by category

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Affinity

Performance

Example Summary of key drivers: Functional performance dimensions

- Washing Powder

0

2

4

6

8

10

12

14

16

18

20

Gets white really

white

Colours don't run Gentle on clothes Economical Removes stains Environmentally

friendly

Is hypo-allergenic

Imp

ort

an

ce

We

igh

t (%

)

Functional Performance Attribute

Example Summary of key drivers: Emotional affinity dimensions

- Washing Powder

0

1

2

3

4

5

6

7

8

9

10

Heritage Nostalgia Caring Bonding Trust Innovation Prestige Acceptability Endorsement

Imp

ort

an

ce

We

igh

t (%

)

Affinity Attributes

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Authority

Identification

Approval

Relative contributions of the elements of Affinity

vary considerably by category

A model is built which tells us how important

each aspect is in driving preference

EQUITY

Performance

Affinity 17% 40%

40% 17%

6%

Authority

Heritage

10%

Innovative

3%

Trust

4%

Identification

Bonding

5%

Nostalgia

7%

Caring

5% Approval

Prestigious

3%

Acceptability

2%

Endorsement

1%

Others

5% Colours

not run

10% Gentle on

clothes

5%

Whites white

20%

BRAND

CHOICE

Example of how Brands Perform on these

two dimensions

Example summary for main brands - Indexed data so 100 = market average

Att

rib

ute

Sco

re

80

85

90

95

100

105

110

115

120

AFFINITY PERFORMANCE

Fairy

Ariel

Surf

Bold

Persil

Market

Average

Functional performance by brand - Indexed data so 100 = market average

Att

rib

ute

Sco

re

85

89

93

97

101

105

109

113

117

121

125

Gets whites

really white

Economical Removes

stains

Is hypo-

allergenic Colours

don’t run

Gentle on

clothes

Environ-

mentally

friendly

Fairy

Ariel

Surf

Bold

Persil

Market

Average

Emotional affinity performance by brand - Indexed data so 100 = market average

Att

rib

ute

Sco

re

Affinity Attribute

85

89

93

97

101

105

109

113

117

121

125

Heritage Innovation Bonding Prestige Endorsement

Trust Caring Nostalgia Acceptability

Fairy

Ariel

Surf

Bold

Persil

Market

Average

The benefits of this approach

• The use of affinity dimensions allows a validated,

fixed, cross-country, cross-category model

• The affinity drivers can be explained using the

brand’s personality attributes or other soft drivers

• The creators of affinity can vary from one brand to

another

• Allows some variation between categories in the

use of personality attributes, since the analysis is

based on affinity (which is fixed) and not on a fixed

set of personality attributes

Att

rib

ute

Sco

re

80

85

90

95

100

105

110

115

120

125

130

135

140

Protective Traditional Dependable Friendly Approachable Responsible

What Personality Creates Persil’s Heritage

Att

rib

ute

Sco

re

80

85

90

95

100

105

110

115

120

125

130

135

140

Confident Energetic Serious Expert Advanced Up-to-date

What Personality Creates Ariel’s Heritage

BRAND

EQUITY

AFFINITY

Emotional

PERFORMANCE

Functional

BRAND

VALUE

PRICE

But what about price?

How we understand price

Ask respondents to rate brands in their salient set on the

scale:- One of the most expensive brands on the market

One of the more expensive brands on the market but not the most

expensive

About average price

One of the cheaper brands on the market but not the cheapest

One of the cheapest brands on the market.

The perceived relative price of each brand can be assessed and two

actions taken

We can construct a complete model of what is driving brand

preference in the market and the role price plays in this

A value line can be drawn up for brands

The role of price in the overall model of

issues driving preference

EQUITY

Performance

Affinity 17% 40%

40% 17%

6%

Authority

Heritage

10%

Innovative

3%

Trust

4%

Identification

Bonding

5%

Nostalgia

7%

Caring

5% Approval

Prestigious

3%

Acceptability

2%

Endorsement

1%

Others

5% Colours

not run

10% Gentle on

clothes

5%

Whites white

20%

Perceived

Price

BRAND

CHOICE

20%

Brand

equity

score

Above average

value given its

price

Perceived Price

Below average

value given it’s

price

The ultimate value of the brand to the consumer

is the function of equity and price

The Value Line

Value Line Analysis E

qu

ity S

co

re

Relative Perceived Price

80

85

90

95

100

105

110

115

120

90 92 94 96 98 100 102 104 106 108 110 112 114 116 118

Fairy

Ariel

Surf

Bold

Persil

88

Despite being seen as a

relatively expensive brand,

Persil offers a strong

value proposition. Ariel only delivers

average equity for

its price

Bold is a relatively low

cost brand that delivers a

lot of equity for its price

Fairy delivers a poor value

proposition with relatively

low equity for its price

However ...

• The market is not homogenous

– Consumers have different needs and

different occasions.

– Also one person may have different needs

on different occasions.

• How do we break the category into targetable

opportunities?

• How do we relate these opportunities to the

brand map?

Segmenting the market into targetable

opportunities

- Needs Based Segmentation

PERSONALITY

DEMOGRAPHICS/

CHARACTERISTICS

PERFORMANCE

PRODUCT/SERVICE

BRAND

IMAGE

BRAND

BENEFITS

OCCASION BASED

PREFERENCE

(EQUITY)

VALUES

BELIEFS

NEEDS

AFFINITY

PRICE


RELATIVE

VALUE

TRIGGERS/

BARRIERS

CHOOSE C

USAGE

PROBLEMS

SATISFACTION


MARKET

DYNAMICS

MAPPING M

E

D

I

A

CHANNELS

SHOPS

CATALOGUES

THE INTERNET

NEEDS BASED SEGMENTATION

FUNCTION

Needs Based Segmentation Identifies Distinct

Targetable Opportunities

• On every occasion of use, brand preference is driven by brand

value, i.e. by a combination of performance and affinity needs

and price perception

• The segmentation seeks to define groups of usage occasions

with similar drivers of brand preference ie. similar needs

• So within each group, the the reasons for brand preference are

similar

• The technique used, Latent Class Segmentation (LCS),

maximises the differences between segments

• This identifies distinct and targetable opportunities

• Each of these can be profiled, mined, understood, etc..

– Any one consumer can be in more than one segment

Seg 1 Seg 2 Seg 3 Seg 4

10 10 10 70

60 70 20 15

30 20 70 15

Total Use

Occasions

Importance of Price 20

Affinity 40

Performance 40

Authority 17 36 20 15 6

Identity 17 12 35 0 6

Approval 6 12 15 5 3

Needs Based Segmentation

Importance of Different Dimensions

Segment 1 Trust to do a good job

Segment 2 Friend to look after clothes

Segment 3 Technology to deliver results

Segment 4 Low Cost

Whites really white 20 25 5 40 9

Gentle on clothes 5 0 12 0 0

Colours don’t run 10 5 3 20 3

Others 5 0 0 10 3

Affinity 40

Performance 40

60 70 20 15

30 20 70 15

Segmentation Gives You Clearly Targetable

Marketing Opportunities 1) Distinct occasion of use groupings based on brand drivers. Profile segments by:

– Consumer

• behaviour

• attitudes/beliefs, etc.

• needs

• motivations

• demographics

– Brand usage

• brand preference

• brand imagery

• brand personality

• brand functionality

• brand value

= Needs Based segmentation of category which breaks the

category into clearly Targetable market opportunities

Example profile of Segments

- by Age -

0

10

20

30

40

50

60

70 Tru

st

to d

o

a G

oo

d J

ob

Fri

en

d t

o

loo

k a

fte

r

Clo

the

s

Te

ch

no

log

y

to D

eli

ve

r

Re

su

lts

Lo

w C

os

t

16-34

35+

Example profile of Segments

- by Brand Preferred -

0

5

10

15

20

25

30

35

40

45

Tru

st

to d

o

a G

oo

d J

ob

Fri

en

d t

o

loo

k a

fter

Clo

thes

Tech

no

log

y

to D

eli

ver

Resu

lts

Lo

w C

ost

Persil

Ariel

Fairy

Bold

NB: Segmentations rarely show much difference between

segments in terms of brand usage.

Example profile Segment 1 - “Trust to do a Good Job”

- Brand Usage and Brand Preference -

• Represents 49% of all occasions.

• Tend to have a low repertoire size with most respondents only buying

the one brand nowadays.

• Little differentiation between this segment and the sample for general

brand usage. However, strong preference for Persil - particularly

powder and liquid variants - considerably less interest in tablets.

• Daz also a preferred brand.

• This segment has the lowest preference for own label products.

• Persil - liquid and powder variants fit well with preference for this

segment - currently taking 43% of preference.

• Daz is main competitor although Daz not as well aligned with

consumer needs.

• Biased towards women aged 30+ with children living

at home and larger family sizes.

• Particularly prevalent (50%+ of occasions) within

Latin America, less so in Western Europe.

• These respondents have a high volume of washing

every week and washing is a daily chore for them.

• Almost all are machine washing although only 30%

iron most or all of their wash.

• Most of these people use fabric softeners in their

wash.

• Relatively high usage of bleach.


- Demographics and consumer behaviour -

• To these respondents it is particularly important how others

perceive them - the family must be turned out well.

• They have fairly traditional beliefs and values.

• They do not say they are short of money but are looking for

value in a laundry product.

• They say they would rather go to another shop to buy their usual

brand if it wasn’t available and are not adventurous in their

choice of brands.

• Time is a problem for these people - they never seem to have

enough although they don’t want to scrimp on their laundry to

save time, they just wish there was a way of making this aspect

of their lives easier.

• The majority have remained loyal to the same brand and would

go to another shop or supermarket to purchase their usual

brand.


- Consumer Beliefs, Values, and Motivations -


- Consumer Needs and Problems -

• The main need for these consumers is a product they can rely

on. Their brand choice is driven more by the affinity they have

with brands than feelings about the actual performance, what

they are looking for is a brand to which they can confidently

delegate the task.

• Particular problems listed for these respondents include:

– Not removing stains first time

– Laundry takes too much time

– Need to use something extra to get whites white

• They are less likely than others to mention

– Fragrance doesn’t last long enough

– Clothes don’t come out soft enough

Segment 1

Trust to do a

good job

24%

Segment 2

Friend to look

after clothes

12%

Segment 3

Technology to

deliver results

17%

2%

12% 9%

Segments come from Different People

with Different Needs - look at overlap

5%

Segment 4

Low Cost

10%

4% 3%

2%

POWER SEEKERS


HARMONY SEEKERS


UK Detergents - brands fitted using gravity model

Tesco

Surf

Persil Colour

Persil

Sainsburys Novon

Lux Flakes

Fairy

Dreft

Daz Bold

Ariel Colour

Ariel

Locating Segments in the map

Segment 1

Trust to do a good job

POWER SEEKERS


HARMONY SEEKERS


How the analysis is done

- Segment Trust to do a good job Brand personality

Fun Confident Up to date

Resp 1

- Preferred brand for this segment

Resp 2


Resp 3


Resp 4


% % %

Average profile of all the brands above

(This is what gets plotted as one point on the map. The

circle simply represents the variability in the profile)

Etc

POWER SEEKERS


HARMONY SEEKERS


UK Detergents - brands fitted using gravity model

Tesco

Surf

Persil Colour

Persil

Sainsburys Novon

Lux Flakes

Fairy

Dreft

Daz Bold

Ariel Colour

Ariel

Locating Segments in the map

Segment 2

Friend to look after clothes

Segment 3

Technology to deliver

results

Segment 4

Low Cost

Segment 1

Trust to do a good job

POWER SEEKERS


HARMONY SEEKERS


Brand Fit versus Segment Needs

• Once the brand fit is established, there are 4 possible

strategies:-

– Good Fit - Leave the brand where it is

– Close fit but could be better - Nudge the brand or

launch a new variant

– No brand currently fits need well - Launch a new

brand

– 2 or more brands fit the need - rationalise portfolio

Using Consumer Attitudes to add

depth to understanding

What are the attitude statements

• The statements should represent

– attitudes towards the category

– attitudes towards how you look and feel and to life in general

(which relate strongly to your personality)

• The first attitude type is specific to the category

• The attitude statements used should represent the how the

person feels about themselves on the same framework on which

we represent the brands

• The attitude statements are used to profile the needs based

segments in order to fully understand them

Overall attitude model

Extroversion

Introversion

Ego Affiliation

‘Outer me’

‘Inner me’ ‘Work’

‘Play’

Product experimental

Product conservative

Pay more Pay less

Overall aim

Maximum of 24 attitude

statements to cover each

of these dimensions

Self/society

• People should respect their moral and

social duties

• It is usually wise to present yourself to

people in such a way that they will like

you

• I am concerned about what other people

think of me

• I need the support of my friends and

social networks to get things done in my

everyday life

• I like to fit in with people of my own age

• It is important to have rules in ones life,

even if you have to make compromises

• I try to do what is best for the community,

rather than what is best for me

• I like to stand out in a crowd

• I hate being told what to do

• For me as an individual, doing

my own thing is more important

than being part of a group

• I often treat myself to something

I don’t need

• It is important to be popular and

well liked by everybody

• I have a few but very close

friends

• A woman should have a career

rather than stay at home

Ego Affiliation

Self/society

• I like quiet evenings at

home rather than going

out

• I don’t feel confident

directing others

• I like to go clubbing and

partying regularly

• In my spare time, I like to be

with a group of friends

• I enjoy my life and don’t

worry about the future

• I am usually the life and soul

of the party

Extroversion Introversion

Beauty as….

• For me, beauty is about being

clean and well groomed

• I wish I had more time available

to take care of my appearance

• For me beauty is about being

willing to suffer to be beautiful

• For me beauty is about making

an effort for others

• For me beauty is a constant

fight against time

• A beautiful smile is one of the

first things people notice about

you

• For me beauty means being in

good health

• For me beauty is about being

natural

• For me beauty is about making

the most of your skin, your eyes

and your face

Play Work

Beauty as….

• I am not worried about the way I

look, it’s the inner me that

counts

• I am at ease regardless of how I

am dressed

• Beauty comes from the inside

• I don’t take regular exercise

• For me, beauty is about being

attractive to the opposite sex

• I like to change my appearance

to create a number of different

looks

• Beauty is about keeping up with

the latest fashion trends

• I am pleased when people

notice me and comment on my

appearance

Outer me Inner me

Product

• I wouldn’t buy a different brand

of (CATEGORY) from the ones I

buy now unless other people

reassured me it was good

• I think very carefully before I

buy a new brand of

(CATEGORY)

• I always know exactly which

brand I am going to buy before I

go to the shops

• I buy a different brand of

(CATEGORY) every time I shop

• I love to experiment with new

brands that come onto the

market

Experimental Conservative

Price as….

• All brands are the

same, so it’s not worth

paying more for one

than another

• I always check prices

carefully, even on small

items

• I am prepared to pay

more to treat myself to a

little luxury

• I am prepared to pay

more for a brand that

really works

Pay more Pay less

The Questionnaire

Data to be collected

People:

Brands / Products:

Behaviour:

Beliefs Brand / Product Usership

Personality Needs / desires

Demographics Problems

Functional Imagery

Brand Personality Perceived user profile

Brand Affinity Need fulfilment

Brand preference Perceived Price

Problem solving

Brand usage by occasion

Brand preference by occasion

Frequency of occasion types

Questionnaire Structure

Screening and Basic Demographics

Problems experienced

Satisfaction with current brand in resolving the problem

Think of the last occasion that the category was used

(then a previous, different occasions)

Emotional needs sought on this occasion

Functional needs sought on this occasion

Describe occasion - when / where / what time etc.

How frequently does this occasion occur

Brand preference on this occasion (CSP exercise)

For salient set established for this occasion (max 5 brands)

Brand usage on this occasion

Questionnaire Structure 2

Consider each of the 8 personality types in turn

Associate personality attributes with each personality type

What brand(s) would each personality type use.

What motivations would each personality type seek?

For each brand in the salient set, which personality

type is the brand most like?

Respondent attitudes, values and beliefs

For each brand in the salient set (max 10 brands),

Functional, personality and affinity attributes.

For each brand in salient set, take brand at Parent level

- Personality Attributes

BR

AN

D

EV

ALU

AT

ION

M

AP

PIN

G

FR

AM

EW

OR

K

What does the Market Dynamics Mapping

approach deliver?

• A coherent marketing strategy for brands and/or

positionings

• Establishes a clear segmentation of categories in

terms of consumer needs

• Helps to understand the opportunities arising out of

each of these segments

• Enables your brands and/or positionings to be

matched against the segments

• All in a way that can be replicated across categories

and across countries

Understanding Consumer Choice

Affinity Performance

Price

Thank you!

Understanding Consumer Choice by Nic Hall RI UK, Bogota 30th. July 2001

Business

Transcript of Understanding Consumer Choice by Nic Hall RI UK, Bogota 30th. July 2001