Perceived Risks in Decision Making
- Originally viewed as high end athletic shoe that improved performance
- With rise in competition in Nike who were producing better performing products gave rise to perceived risks associated with Converse
- Cognitive dissonance occurs when a product does not meet consumer expectation
- Functionality and Physical Safety Perceived risks resulted in cognitive dissonance
- Once the brand was advertised as staple casual footwear it went from a $200 million company to $1.4 billion in 3 years.
Personality and Self
- We are what we consume
- The emotional experience from a product is heightened when it resonates with the 4 types of self image
- Hosany and Martin (2012) suggests functionality and monetary attributes become less of a barrier to purchase if the product will help an individual express their ideal self
- Converse have used celebrity endorsements as a way of expressing brand personality and image
- Moving from Chuck Taylor in the 60’s to Kurt Cobain in the 90’s
- What these celebrities stand for has changes just like the function and brand image of Converse has changed as well.
Motivation
- No longer can brands just market a product based on product benefits and features.
- This only appeals to the rational/cognitive
- When brands understand Maslow’s Hierarchy of needs, they market products in a way that convinces the consumer, when you wear my product you will reach a stage of self actualisation.
It appeals to the emotional and focuses on attitude formation
Reference List:
Hosany, S. and Martin, D., 2012. Self-image congruence in consumer behavior. Journal of Business Research, 65(5), pp.685-691.
Kressmann, F., Sirgy, M.J., Herrmann, A., Huber, F., Huber, S. and Lee, D.J., 2006. Direct and indirect effects of self-image congruence on brand loyalty. Journal of Business research, 59(9), pp.955-964.
Mitchell, V.W., 1992. Understanding consumers’ behaviour: can perceived risk theory help?. Management Decision, 30(3).
(https://www.nytimes.com/2015/08/02/your-money/converse-treads-carefully-in-updating-well-worn-chuck-taylor-brand.html) ‘Converse Treads Carefully in Updating Well Worn Chuck Taylor Brand‘, Sommer. Jeff, New York Times, Aug 1 2015, [accessed 18/03/2019]
(https://theidleman.com/blogs/style/history-of-converse) ‘The History of Converse’, TheIdleMan, Nov 13 2018 [accessed 16/05/19]
(https://qz.com/129238/how-converse-went-from-bankruptcy-to-a-1-4-billion-business/) ‘How Converse went from Bankrupt to a $1.4 Billion Business’, Lorezetti Laura, Quartz, Sep 28 2013 [accesses 11/05/19]
Converse 