Consumer Attitudes

1. Consumer Attitudes

2. Attitudes What is an attitude? • Expressions of inner feelings that reflect whether a person is favorably or unfavorably predisposed to some object; • in marketing, “object” can be a brand, a brand name, a service, a service provider, a retail store, a company, an advertisement, in essence, any marketing stimuli.

3. Why, From a Marketer’s point of view, is it important to know about Attitudes? If a consumer is favorably disposed towards your product or service then you want to keep them so disposed If they are unfavorably disposed then you want to change their attitude. • Therefore we need to know. • What they are • How they are formed • What influences them • How they can be changed

4. Development of Attitudes Attitudes are learned predispositions; therefore, their development is influenced by • personality of the individual • family • peers • experience • education • culture • subculture, nationality

5. Functions of Attitudes • Utilitarian: guide consumers to seek out products for certain benefit – Do they like it or not.

6. Value-expressive: consumers’ attitudes guide them to use products that are an expression of themselves – what does it say about them.

7. Ego-defensive: consumers’ attitudes guide them to use products that protect their self-esteem – What self doubts do they help overcome. Edna's plight: Bad breath. A Listerine adfrom the 1920s.

8. Knowledge function: attitudes enable us to organize the information – does the product meet the needs for order and structure Shell’s ad provides reassurance

9. Three Components of Attitudes The ABCs of attitudes: • The Affective Component (based on feelings or overall evaluation) – I feel good about myself when I drive a BMW • The Behavioral Component (likely action toward object; e.g. from a consumer behavior point of view, the consumer’s intention to buy a product) – I will buy a BMW next time • The Cognitive Component (based on beliefs; what you think about a marketing stimulus) – I think BMWs are quality cars

10. Hierarchy of Effects This sweater looks so good on the mannequin that some consumers “just have to have it”. In other words, they fall in love with it and buy it. Once they get it home they learn about it by looking at the tag to see if it needs to be dry cleaned etc. What’s the ABC sequence.

11. Golf Pro shops encourage shoppers to take clubs to the driving range to try them out before buying them. Many companies give out free samples. Consumers first try the product, then decide whether they like it or not. Finally they form an opinion of it. The ABC sequence is?

12. Washing machines are about as expensive as other major appliances but are usually hidden in the basement, and few care about how they look. Washing machines are functional. When buying one it is likely consumers will visit several stores first, talk to salesmen check the Internet etc. i.e. Consumers gather information, consider the alternatives and then choose a model. The ABC sequence is?

13. High Involvement • Learn-Feel-Do • Low Involvement • Learn-Do-Feel • Experiential • Feel-Do-Learn

14. Our attitude can be influenced by the ad over and above the product An ad with a warm feeling

15. The Woman in This Ad Exhibits a High Level of Attitudinal Commitment to Her Employer

16. Fishbein’s Multi-attribute Theory • Fishbein’s model argues that consumers’ attitudes towards a brand derive from their beliefs about the attributes of the brand and their evaluations of those attributes • Three factors influence attitude formation: • salient attributes for an object/product • extent to which consumer believes product contains these salient attributes • Importance of the attribute to the consumer

17. Fishbein’s Multiattribute Theory • Step One: List of Attributes • Step Two: Obtain the relative importance of them (weights). • Step Three: Obtain the evaluation of each brand with respect to each attribute. • (6=Excellent, 5=Very Good, 4=Good, 3=Bad, 2=Very Bad, 1=Poor) • Step Four: Obtain the mathematical solution, applying Fishbein’s Formula.

18. Fishbein’s Multi-attribute Theory Aijk =  (Bijk x Iik): where • i = attribute • j = brand • k = consumer • I = Importance weighting • B = Extent to which the brand is believed to possess the attribute • A = Attitude toward brand/product/etc.;

19. Example Application of Fishbein’s Multi-attribute Theory • In Crowfoot, there are 3 banks: TD, CIBC, Royal. • We would like to know the degree of preference clients have to each • Step One: List of Attributes: quickness in service, office hours, localization, parking facilities, etc • Step Two: Obtain the relative importance of them (weights). Quickness 1, Hours 4, Localization 3, Parking 2 • Step Three: Obtain the evaluation of each bank with respect to each attribute. (6= Excellent, 5=Very Good, 4=Good, 3=Bad, 2=Very Bad, 1=Poor) • Step Four: Obtain the mathematical solution, applying Fishbein’s Model.

20. Example Application of Fishbein’s Multi-attribute Theory Importance Royal TD CIBC Quickness 1 4 3 1 Hours 4 3 3 3 Localization 3 4 3 2 Parking 2 1 2 5 Total 30 28 29 Which is the best Bank? Which is the worst Bank? What would you do if you were responsible for TD?

21. Problems with Fishbein’s Model • Measure of Attitude not equal to Behaviour • Does not address situational factors • Not all attitudes are equal - some strongly held others weakly • Does not consider social factors • Some things are beyond consumer's control • Assumes that we have been able to specify adequately all the relevant attributes

22. Fishbein’s Theory of Reasoned Action • A refinement of his multi-attribute model • Now considers conviction with which attitude held - more of a behavioral intention model • Introduces ideas of importance of opinions of significant others (subjective norms) and a consumer’s motivation to comply with the opinions of these significant others.

23. Attitude-Behavior Consistency • Note: A positive attitude toward a product does not necessarily mean that the consumer will buy • Attitude-behavior consistency, the extent to which attitudes lead to purchase, is determined by a variety of consumer, situational, and measurement factors

24. Attitude-Behavior Consistency • Consumer Characteristics • Resources, experience, state vs. action orientation, degree of conviction with which attitude is held • Situational Characteristics • Intervening time, unforeseen events, social influences, message repetition • Measurement Characteristics • timing of measurement, reliability of measurement

25. Implications of Attitude Research for Marketing Strategy • Product positioning and repositioning • Advertising-focus on certain attributes/benefits • Marketing research • Segmentation • Distribution: select outlets for which consumers have favorable attitudes

26. Consumers can also have attitudes towards the act of buying

28. Attitude Change

29. The Marketer’s Challenge • Deep seated attitudes are internalized and become part of the person's value system • Attitudes are difficult to change because they are so important to the individual – e.g. New Coke

31. Branding America

32. Persuasion - the active attempt to change attitudes • Marketing messages are designed to persuade consumers to change brands • The effort to persuade will influence how to market/advertise • Who will be depicted using the product in the ad • How the message should be constructed • What media to use • Where to advertise

33. Interactive Communications

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35. THE SOURCE • Who is delivering the message can have a big impact on whether it will be accepted. source credibility • a credible source can be particularly persuasive Expertise Trustworthiness Objectivity Attractiveness

36. Source Credibility Credibility can be enhanced if the sources qualifications are perceived asrelevant to the product being endorsed. If they are seen as experts.

37. Celebrities as Credible Sources • Awareness Due to their fame and high profile celebrity endorsers enable messages to stand out and break through the media clutter. • hold the viewer's attention • a consumer is more likely to keep the television on the channel showing a commercial with Wayne Gretzky than a commercial with an unknown actor. • provide testimony for a product or service, • especially effective when the product has contributed to their celebrity eg. consumers may be more likely to try a motor oil endorsed by Al Unser, Jr. This relationship can increase a consumer's belief and trust in the product and its benefits. • Instant credibility when consumers see a credible celebrity endorsing a product, consumers think that the product must be at least ‘OK’

38. PR coverage: celebrities are topical and create high PR coverage. Celebrity-company marriages are covered by most media • To create positive attitudes towards products and generate sales EG for sports figures, people know they are not going to be as good as these athletes, but having their equipment makes them feel better. • Approximately 20% of all television commercials feature a famous person from the world of sport, television, movies or musical entertainment

39. Drawbacks of using Celebrities $ $ Pepsi Shaquille O'Neal $25 million NikeTiger Woods $40 million Reebok Venus Williams $40 million Reebok Allen Iverson $100 million (lifetime) Shick Andre Agassi $19 million Nike Michael Jordan $40 million

40. Drawbacks of using Celebrities

42. Consumer cynicism • People know celebrities get paid a lot of money for endorsements and this knowledge leads them to cynicism about celebrity endorsements.

43. “The logo does signify the change that we are making. It's truly a new beginning for us.” – Jeff Smith, Kmart "The new logo will signify change but the reality is they have to do a better job inside the store.” – David Littmann, Comerica economist “K-Mart forgot the basics, like a clean store, well-stocked shelves, helpful personnel and attention to detail. The stores are a mess.” — The Shopper Report Consumer cynicism Introducing: The New Kmart!

44. There has to be a link between product and celebrity Cybill Shepherd was endorsing beef industry when said she did not eat meat. Sainsbury’s used Catherine Zeta Jones for its recipe advertisements when she was caught shopping in Tesco (UK grocery stores)

45. Guidelines For selecting a spokesperson (FRED) Familiarity: The target market must recognize the celebrity, and perceive the person as friendly, likeable, and trustworthy. The more familiar an endorser, the more likely consumers are to buy the endorsed product Relevance For credibility there should be some link between the celebrity and the product, and between the celebrity and the audience. It is important for audience to identify with the celebrity. E.g. older consumers feel a tie to Arnold Palmer. If consumers can associate with the endorser, they will feel more comfortable accepting and buying the product or service. Esteem: Consumers must respect celebrity for the commercial credibility. Differentiation: The public must see the endorser as different from all the rest. Michael Jordan is an example of a celebrity that stands apart from the normal athlete, one of the contributing factors to his success as an endorser.

46. Source Attractiveness Beautiful people are used in advertising because • consumer's pay more attention to ads containing attractive models • degree of attractiveness influences consumer's product evaluation - the more attractive the higher we evaluate the product.

47. Trustworthiness

48. The Message What makes a marketing message persuasive? • stress a unique attribute or benefit of the product - USP • showing convenience of use • showing new product or improved features • people incidental to the message • indirect comparison with other products • demonstration of the product in use • demonstration of tangible results • no principal character - i.e. more time is devoted to the product

49. Words Versus Pictures Vividness Message as Metaphor Factors Affecting Persuasiveness Repetition Type of Appeal Argument

50. Words or Pictures Which conveys the message best? Visual • affects aesthetic evaluations • stress on creativity • don't convey factual information well Verbal • Take more time for consumer to process • Better suited to high involvement medium - eg print • harder to remember therefore more repetition needed verbal elements are more effective when reinforced by an accompanying picture