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Understanding Consumer Choice by Nic Hall RI UK, Bogota 30th. July 2001
Citation preview
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
Consumer builds up an
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
Brand Consumer Interaction
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 Consumer Interaction
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 Interaction
Brand Consumer 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
Consumer builds up an
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
LOOK AT C LOOK AT B LOOK AT A
RELATIVE
VALUE
TRIGGERS/
BARRIERS
CHOOSE C
USAGE
PROBLEMS
SATISFACTION
THE CONSUMER THE BRAND
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
LOOK AT C LOOK AT B LOOK AT A
RELATIVE
VALUE
TRIGGERS/
BARRIERS
CHOOSE C
USAGE
PROBLEMS
SATISFACTION
THE CONSUMER THE BRAND
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
Verbal descriptions of each type of
consumer personality
“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
Verbal descriptions of each type of
consumer personality
“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
Verbal descriptions of each type of
consumer personality
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
VITALITY SEEKERS FREEDOM SEEKERS ACCEPTANCE SEEKERS
HARMONY SEEKERS
COMFORT SEEKERS CONTROL SEEKERS IMAGE 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
VITALITY SEEKERS FREEDOM SEEKERS ACCEPTANCE SEEKERS
HARMONY SEEKERS
COMFORT SEEKERS CONTROL SEEKERS IMAGE SEEKERS
POWER SEEKERS
VITALITY SEEKERS FREEDOM SEEKERS ACCEPTANCE SEEKERS
HARMONY SEEKERS
COMFORT SEEKERS CONTROL SEEKERS IMAGE SEEKERS
Real data from the UK
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
VITALITY SEEKERS FREEDOM SEEKERS ACCEPTANCE SEEKERS
HARMONY SEEKERS
COMFORT SEEKERS CONTROL SEEKERS IMAGE SEEKERS
POWER SEEKERS
VITALITY SEEKERS FREEDOM SEEKERS ACCEPTANCE SEEKERS
HARMONY SEEKERS
COMFORT SEEKERS CONTROL SEEKERS IMAGE SEEKERS
Real data from the UK
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
VITALITY SEEKERS FREEDOM SEEKERS ACCEPTANCE SEEKERS
HARMONY SEEKERS
COMFORT SEEKERS CONTROL SEEKERS IMAGE SEEKERS
POWER SEEKERS
VITALITY SEEKERS FREEDOM SEEKERS ACCEPTANCE SEEKERS
HARMONY SEEKERS
COMFORT SEEKERS CONTROL SEEKERS IMAGE 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
Real data from the UK
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
LOOK AT C LOOK AT B LOOK AT A
RELATIVE
VALUE
TRIGGERS/
BARRIERS
CHOOSE C
USAGE
PROBLEMS
SATISFACTION
THE CONSUMER THE BRAND
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
LOOK AT C LOOK AT B LOOK AT A
RELATIVE
VALUE
TRIGGERS/
BARRIERS
CHOOSE C
USAGE
PROBLEMS
SATISFACTION
THE CONSUMER THE BRAND
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.
Example profile Segment 1 - “Trust to do a Good Job”
- 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.
Example profile Segment 1 - “Trust to do a Good Job”
- Consumer Beliefs, Values, and Motivations -
Example profile Segment 1 - “Trust to do a Good Job”
- 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
VITALITY SEEKERS FREEDOM SEEKERS ACCEPTANCE SEEKERS
HARMONY SEEKERS
COMFORT SEEKERS CONTROL SEEKERS IMAGE 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
VITALITY SEEKERS FREEDOM SEEKERS ACCEPTANCE SEEKERS
HARMONY SEEKERS
COMFORT SEEKERS CONTROL SEEKERS IMAGE 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
- Preferred brand for this segment
Resp 3
- Preferred brand for this segment
Resp 4
- Preferred brand for this segment
% % %
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
VITALITY SEEKERS FREEDOM SEEKERS ACCEPTANCE SEEKERS
HARMONY SEEKERS
COMFORT SEEKERS CONTROL SEEKERS IMAGE 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
VITALITY SEEKERS FREEDOM SEEKERS ACCEPTANCE SEEKERS
HARMONY SEEKERS
COMFORT SEEKERS CONTROL SEEKERS IMAGE 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!