Categorization

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Categorization

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-Occurs when consumers use their prior knowledge to label, identify, and classify something new (grouping things together)
-Once we have categorized an object, we know what it is, what it is like, and what is similar to it
---EXAMPLE: A kemquat vs. an orange

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Why do we Categorize?

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-Too much information
-Utter chaos without structure
-Helps us learn
-We like to do it
-We're good at it*
-Helps us know what to expect

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Taxonomic Categories

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-Groups things together based on similar features and attributes
-Lots of sharing within categories
-Little sharing across categories
-3 Levels:
---Superordinate>> Animal
---Basic>> Bird
---Subordinate>> Finch

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Categorical Structure

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-As you move down to the lower level subordinate categories, the more similar your associations become
-Our prior knowledge and expertise help determine how we categorize things
-A consideration set is where you categorize brands based on your personal preferences and opinions of certain brands

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Outburst Game Illustrations

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-The Recency Effect (Tom Hanks movies)
-The Prototype Effect (things that fly)
-The Expertise Effect (Cosmetic brands vs. NBA sports teams)

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The Expertise Effect

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-Experts: people whose prior knowledge is well developed, in part because they have had a lot of experience and familiarity with a particular object or certain task
-Differ from novices because...
---The category structure is more developed
---They have more categories, associations, and a better understanding of relationships between and within categories
---They have more subordinate-level categories

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The Prototype Effect

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-Category member with the most associations with other members of the category and very few associations outside the category
---EXAMPLE: Black lab vs. Chinese crusted poodle

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Graded Structure and Prototypes

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-Graded Structure: some members represent a category better than others
-Prototype: best example of a category (most easily recalled and is the standard of comparison for a particular category)
---EXAMPLES: Coke for soda, Golden Retriever for dogs, Forrest Gump for movies

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Generic Trademarks

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-Have lost all legal protection as trademarks because they are so commonly used (i.e. Ory ice used to be a brand name)
-Aspirin is still a Bayer trademark for acetylsalicylic acid in about 80 countries, but is declared generic in the U.S.
-Brand names used as generic terms: still have legal protection but are often used as the name for the product category
---EXAMPLES: Kleenex for tissues, Q-tip for a cotton swab, Band-Aid for bandages, Xerox, and Google (last 2 are also verbs now)

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Goal-derived (or Ad Hoc) Categories

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-Contain things we see as relevant to a goal
-We use rules/experiences to create these
-EXAMPLES: things to do on a Friday night and things you eat while on a diet
**Conclusion: Ad-hoc categories have graded structure and are also malleable

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Marketing Implications of Categorization

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-First Mover Advantage: allows you to be the prototype, is easier to recall, and thus increases sales (i.e. Febreeze)
-Consideration Sets:
---Memory based choices: thinking about where you want to eat while you're in class
---Context based choices: deciding what you want to eat while walking down high street (point of purchase)
---Brand Awareness: reminder advertising (Coke makes up a large % of TV ads)

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Positioning

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-Positioning Techniques:
---Position close to a prototype (other fabric refresheners make their product look similar to fabreeze)
---Position away from a prototype (Insurance companies offering rates from the beginning)
---Position relevant to a goal (use Special K for weight loss)

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Repositioning

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-Can use placement to change categorization
--EXAMPLE: Baking soda can now be found in the baking aisle and in the cleaning aisle because it can be used to meet both needs

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How Marketers Influence Categorization

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-Create a new category
---Wii is just new, it's not better (directed towards the family)
---New categories often are a combination of two "known" categories (i.e. a smartphone)
-Analogies
---Can be used in a product name (i.e. PDA- personal digital assistant)
---Can be used in marketing communications (i.e. a Kindle- electronic book)