Attitudes, Intentions, and Behavior

1. Attitudes, Intentions, and Behavior MKT 750 Dr. West

2. Agenda • Understanding attitudes & behavior • Building brands • Preparing for Tivo case

3. Answer Key

4. Satisfaction & Retention Awareness & Availability Overview • Models & Managerial Implications Need/Opportunity Post Recognition Search Evaluation Choice Choice Decision Rules

5. Satisfaction & Retention Fishbein Attitude Model Awareness & Availability Overview • Models & Managerial Implications Prior Need/Opportunity Post Beliefs Recognition Search Evaluation Choice Choice Decision Rules

6. What’s to come? • How knowledge is acquired and used • Attitude Formation & Change • Information Processing • Memory (storage & retrieval) • Managerial Implications • Brand building & maintenance • Communication (advertising)

8. Predicting Behavior Attitudes Preferences Intentions Behavior Social Norms

9. Consumer Attitudes • Attitudes: represent what we like and dislike • Preferences: represent attitudes toward one object in relation to another

10. Consumer Attitudes • Just because consumers prefer brand X doesn’t mean they will necessarily buy brand X

11. Unfavorable Attitude Favorable Attitude Attitude toward the object: How do you feel about Dell computers? Coding Options: (-3, -2, -1, 0,1, 2, 3) Dislike very much       Like very much Neutral Point

12. Measuring Attitudes Cognitive Component: Measuring Beliefs about Specific Attributes Using the Semantic Differential Scale Diet Coke Strong taste —— —— —— —— —— —— —— Mild taste Low priced —— —— —— —— —— —— —— High priced Caffeine free —— —— —— —— —— —— —— High in caffeine Distinctive in —— —— —— —— —— —— —— Similar in taste totaste most

13. Measuring Attitudes Affective Component (Measuring Feelings about Specific Attributes Using Likert Scales) Neither Agree Strongly nor Strongly Agree Agree Disagree Disagree Disagree I like the taste of Diet Coke. —— —— —— —— —— Diet Coke is overpriced. —— —— —— —— —— Caffeine is bad for your health. —— —— —— —— —— I like Diet Coke. —— —— —— —— ——

14. Measuring Attitudes Behavioral Component (Measuring Actions or Intended Actions) The last soft drink I consumed was a ___________________. I usually drink________________soft drinks a week. What is the likelihood you will buy Diet Coke  Definitely will buy the next time you purchase a soft drink?  Probably will buy  Might buy  Probably will not buy  Definitely will not buy

15. Attitude Objects: Ao • Product • Company • Retailer • Product attributes • Brand associations (logo, symbol) • Advertising and spokespersons

16. Antecedents Consequences Acompany Abrand Aproduct Intention Behavior Astore Aad Aattributes

17. Elements of Attitudes • Beliefs are subjective judgments about the relationship between two or more things • e.g. Product Quality, Reliability, Nutritional Value • Beliefs about a product’s attributes and their evaluationdetermine the favorability of one’s attitude toward the product

18. Evaluation of Product Attributes Overall Product Evaluation Intention to Buy Brand Beliefs Behavior Theory of Reasoned Action:AMulti-Attribute Model (ei) (bi) (Ao) (BI) (B) Social Norms n Ao = S bi ei + SN(Fishbein & Azjen) i =1

19. Running Shoes Beliefs (bi) Brand Brand Brand Attribute Evaluation (ei) A B C Shock absorbent +2 +2 +1 -1 Price less than $50 -1 -3 -1 +3 Durability +3 +3 +1 -1 Comfort +3 +2 +3 +1 Desired color +1 +1 +3 +3 Arch support +2 +3 +1 -2 Total score

20. Running Shoes Beliefs (bi) Brand Brand Brand Attribute Evaluation (ei) A B C Durability +3 +3 +1 -1 Comfort +3 +2 +3 +1 Shock absorbent +2 +2 +1 -1 Arch support +2 +3 +1 -2 Desired color +1 +1 +3 +3 Price less than $50 -1 -3 -1 +3 Total score +29 +22 - 6 • (3) (-3) • (6) (9) (3) • (2) (-2) • (2) (-4) • (3) (3) • (3) (3) (-3)

21. Poor Good Poor Good Poor Good Poor Good Neglected Opportunity Competitive Disadvantage Competitive Advantage Head-to-head competition Null Opportunity False Alarm False Advantage False Competition HIGH LOW POOR GOOD POOR GOOD Stimulus Importance-Performance Grid Attribute Our Competitor’s Simultaneous Importance Performance Performance Result

22. Benefits of Multi-attribute Model • Diagnostic power-- examines WHY consumers like/dislike your product • Segmentation based on attribute importance • Competitive analysis • Forecasting sales, new product development, persuasion strategies

23. Implications for Attitude Change • Changing beliefs (bi) • Cadillac (Heritage Reborn) • Changing attribute importance (ei) • Airbags & Safety • Antibacterial soap

24. Implications for Attitude Change • Add a new attribute • Carbohydrates in beer?

25. Influencing Consumer Attitudes: • Beliefs (bi) are easier to change than desired benefits (ei). • Attitudes are easier to change when • Involvement with the product category is low because attitudes are held with less confidence and commitment • They are based on subjective or second hand information rather than personal experience

26. The rest of the story… • What’s missing from Fishbein’s “Theory of Reasoned Action” • Attitudes = F(Beliefs, Evaluations, Social Norms) • Where do our attitudes come from? • Friends and family • Personal experience • Observation • Media & Advertising

28. Profit Product Life Cycle Decline: harvest or rejuvenate Time Decelerating Growth: new segments, brand extensions Sales Accelerating Growth: build share, WOM Maturity: control costs, increase efficiency, monitor competitors and trends Emergence:create awareness and induce trial

29. Product Adoption Process Types of Consumers 13½% Early Adopters 2½% Innovators 34% Early Majority 34% Late Majority 16% Laggards

30. Factors Affecting Adoption:The ACCORD Model • Advantage – the degree to which the product appears superior • Compatibility – matches the values and experiences of users • Complexity– ease of understanding and usage • Observability– the benefits of use observable and describable to others • Riskiness– negative outcomes can be foreseen • Divisibility– can the product be tried on a limited basis

31. Launching TiVo • Analyze the situation from the consumer standpoint. • What is TiVo? • What factors facilitate or inhibit TiVo’s adoption? • Who is TiVo best suited for? • Segmentation and targeting

32. Launching TiVo • Analyze the situation from the networks, the advertisers, and the cable/satellite companies perspective: • What do these stakeholders want TiVo to be?

33. Launching TiVo • Think about the competition • What are Microsoft’s potential strengths and weaknesses in this market? • Evaluate Tivo’s action plan as given at the end of the case?

34. Assignment • Read Chapter 7 • Write-up the Tivo case