MKT4804 Marketing Management
This exercise was prepared by Dr. Olimpia C. Racela, Assumption University. 2006
1
Expectancy-Value Model and Brand Positioning
Buyers use a variety of decision approaches to choose a brand. Some approaches
are simple choice heuristics while others require more time and energy to evaluate brands.
Most current evaluation models see the consumer evaluation process as cognitively
oriented. That is, they see the consumer as forming product judgments on a conscious and
rational basis. The expectancy-value model is a cognitively oriented model that assumes that
buyers form a set of beliefs about where each brand stands on each attribute and then
combines those brand beliefs, both positive and negative, according to their importance.
Let’s take a look at how these perceptions are used to help position brands.
Positioning of ‘no name’ brand computers
is a tremendous challenge for
manufacturers. An independent marketing research firm conducted customer value analysis
as a means to provide advice on how ‘no-name’ brands may be positioned. The research
involved measuring perceptions of different ‘no-name’ computer brands among 100 Thai
consumers. The data are shown below:
Table 1 presents a summary of the data, which will be used to determine the relative
importance of five computer benefits.
Table 1. Frequency of Responses (n=100)
Benefit Ratings
Benefits
1
2
3
4
5
6
7
Software upgrades
5
5
10
15
15
35
15
Compatible hardware
15
30
35
20
Common software
5
25
15
30
15
10
User training
10
15
5
20
30
20
Technical support
5
15
50
30
Table 2 shows the average ratings for each brand on each benefit on a scale of 1 to
7, where 1 is poor and 7 is excellent.
Table 2. Average Ratings for Each Brand on Each Benefit (n=100)
Average Ratings for Each Brand on Each Benefit
Benefits
Icarus Geronimo Anarchy
ISIS
Tornado
Software upgrades
5.6
5.4
3
2.8
4
Compatible hardware
5
2
2
4.8