Means end theory
What is means end theory?
Means end theory asserts that personal values drive consumers’ decisions about choosing a product or service. Introduced by Gutman (1982), the means end theory assumes that customers see their purchase as a means to valued ends, trying to explain how it paves the way for their desired outcome. Also referred to as the means end chain model, this approach uses qualitative and quantitative data to uncover customers’ underlying motivations and emotions.
What is attribute-consequence-value sequence?
The means end theory is based on attribute-consequence-value sequence. The sequence seeks to explore how customers link attributes of products or services with certain consequences and how these consequences help them achieve their personal or communal values.
The A-C-V model is further divided to lead to a more accurate understanding of customers’ motivations. The subcategories often include:
Concrete attribute (CA)
Abstract attribute (AA)
Functional consequences (FC)
Psychological consequences (PC)
Instrumental values (IV)
Terminal values (TV)
Personal values (PV)
Communal values (CV)
Laddering technique
The A-C-V sequence creates a chain or ladder that shows — and tracks the relationship between the attributes of a product or service and the value that it creates for the customer. Once these ladders are generated, researchers can collect them to create value maps, illustrating the shopping behavior of individuals based on their core values.
Laddering thus refers to detailed customer interviews which aim to understand how customers translate the attributes of a product or service to actual values by eliciting their underlying motivations. The interview questions seek to answer why and how certain attributes in products or services impact the shopping behavior of customers. By understanding this connection between attributes, consequences, and values, businesses can tailor their offerings to better align with customer preferences and create more meaningful and impactful experiences.
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Means end theory and customer value
Adding attributes to a product or service that will be immediately translated into customer value is the ultimate goal of many businesses. The following takeaways help you have a more vivid idea about what customers really value:
People often place more value on things that are more difficult to gain or on things that are not widely available. For example, loyal customers highly value rewards or incentives with exclusivity, such as limited discounts, time-sensitive coupons, or exclusive invitations to premium events.
"A loyalty program helps you build relationships through offering value, like sharing related or complementary products to customers who have already tried your offering. Strategic, regular touchpoints will increase your customer’s lifetime value and your margin. It’s win-win!"
Felipe Silberstein
Head of Platform Strategy at Apply Digital
Customers value personalization. Research on the importance of personalization shows that 71% of consumers expect companies to interact with them on a personalized level. Creating a unique customer experience is an effective way to help customers feel valued. Personalized messages enable businesses to build rapport with customers — making them feel more appreciated and therefore boosting their engagement.
Games add value to your product or service. Gamification examples show that it is a way to create a fun and exciting shopping experience. It also increases the psychological impact of your offering because people tend to value the things that they actually work to gain.
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Check out our "Loyalty psychology: How to build emotional bonds and drive revenue" to gain insights into how means end and other psychological theories can help you nurture emotional loyalty.
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