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. Attitudes • attitudes are acquired, we are not born with them • attitudes can be positive or negative • attitudes may be complex and contradictory • attitudes are functional for an individual's lifestyle • attitudes have different intensities • attitudes fit our central values • attitudes are unique to each individual • attitudes can be modified and influenced by persuasion • attitudes are assumed to be linked to behaviour (e.g purchasing)

4. 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 (i.e. has a positive attitude) then you want to keep them so disposed If they are unfavorably disposed or neutral then you want to change their attitude.

5. Therefore we need to know Why Consumers Form Attitudes? How Consumers Form Attitudes? How to Measure Consumers Attitudes • How to Change Consumers Attitudes?

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

7. Functions of Attitudes Utilitarian: Do the products provide some benefit or reward?Any attitude adopted in a person’s own self-interest

8. Value-expressive: Does the product say something about who I am or would like to be? Is it self-expressive.

9. Ego-defensive: Does the product protect my self-esteem Does it help overcome any self doubts “If it’s bad you won’t be welcome… Play safe….use listerine” Edna's plight: Bad breath. A Listerine adfrom the 1920s.

10. Knowledge function: does the product help me to organize the information – does the product meet the needs for order and structure Rooibos ad provides reassurance that product is organic and caffeine free

11. Which is more likely to be affective in forming a positive attitude toward a particular brand of coffee? Copy that said the coffee was flavourful Copy that said the person was discriminating What type of attitude function do each of the above appeal to?

12. Three Components of Attitudes The ABCs of attitudes: • The Affective Component (feelings) I feel good about myself when I drive a BMW • The Behavioral Component (action toward object) I will buy a BMW next time • The Cognitive Component (beliefs) I think BMWs are quality cars

13. Attitudes and the High-Involvement Decision Process • Need arousal • Information search • Evaluation of Alternatives • Beliefs • Feelings • Intention to Act • Purchase • Post-Purchase behaviour Hierarchy of Effects

14. 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

15. Fishbein’s Multiattribute Theory • Step One: List of Attributes • Step Two: Obtain the relative importance of them (weights). The more important the higher the weight • 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: Apply Fishbein’s Formula to obtain the mathematical solution

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

17. Example Application of Fishbein’s Multi-attribute Theory • In Crowfoot, there are 3 banks: TD, CIBC, Royal. • We would like to know the overall or general attitude consumers have to each • Step One: List of Attributes: customer service, hours, products, parking facilities, etc • Step Two: Obtain the relative importance of them (weights). Service 2, Parking 1 Products 3, Hours 4 • 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.

18. Example Application of Fishbein’s Multi-attribute Theory Importance Royal TD CIBC Service 2 5 2 3 Hours 4 3 5 3 Products 3 5 3 3 Parking 1 2 2 2 ___ ___ ___ Total 39 35 29 Which Bank does the customer have the best attitude toward? Which the worst attitude? What would you do if you were responsible for CIBC?

19. Implications of Attitude Research for Marketing Strategy • Product positioning and repositioning • Shows which attribute has a competitive advantage and which a disadvantage • Advertising-focus on certain attributes/benefits • Marketing research • Segmentation

20. 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 (conviction) • Does not consider social factors e.g. influence of friends and family ‘myfamily think I should buy X’ • Assumes that we have been able to specify adequately all the relevant attributes (e.g. interest rates)

21. 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.

22. Attitudes can also apply to ads? Most people hate pop-up ads How do the ads influence attitudes towards the brand?

23. Attitude-Toward-the-Ad Model A model that proposes that a consumer forms various feelings (affects) and judgments (cognitions) as the result of exposure to an advertisement, which, in turn, affect the consumer’s attitude toward the ad and attitude toward the brand. Head on

24. Measuring Attitudes • Ideally one would measure • consumers’ beliefs towards a brand • consumers’ feelings towards owning or using the brand • consumers’ intentions towards purchasing the brand • In practice most measures focus on measuring beliefs and feelings

25. ATTITUDE MEASUREMENT • Semantic differential scale • Likert scale • Rank-order scales

26. ATTITUDE MEASUREMENT Semantic Differential Scale For each statement tick ( X ) the box that best describes your feelings about WalMart. Modern Store Old- fashioned store Low prices High prices Unfriendly staff Friendly staff Narrow product range Wide product range Sophisticated customers Unsophisticated customers

27. ATTITUDE MEASUREMENT Likert scale AGREEMENT IMPORTANCE FREQUENCY QUALITY LIKELIHOOD

28. ATTITUDE MEASUREMENT Rank-Order Scales Rank the following soft-drinks from 1 (best) to 5 (worst) according to your taste preference: Coca-Cola _____ 7-Up _____ Dr. Pepper _____ Pepsi-Cola _____ Mountain Dew _____ • Top and bottom rank choices are ‘easy’ • Middle ranks are usually most ‘difficult’

29. General Strategy • e.g. general attitude towards buying a car • elicit important attributes. E.g. reliability, safety, economy, cost, style, performance. • quantify the beliefs and feelings about these attributes by ranking the attributes according to some scale (e.g. Likert) Compare brands on various attributes

30. Attitudes and Marketing Strategy • Market research to track changes in attitude over time and for brand comparison • In new product development - focus on preferred attributes • In segmentation - focus on those attributes which particular segments favour • In helping tailor promotional strategies and in measuring the effectiveness of promotions

31. Attitude Change

32. How can marketers change attitudes?

33. The Marketer’s Challenge • Deep seated attitudes are internalised 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

34. What is this ad trying to do? “You think smoking makes you look cool, think again. Cigarettes stain your teeth permanently. And there’s nothing cool about that”

35. Branding America

37. 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

38. Strategies of Attitude Change • Changing the Basic Motivational Function. • Associating the Product With an Admired Group or Event. • Resolving Two Conflicting Attitudes. • Altering Components of the Multi-attribute Mode. • Changing Beliefs About Competitors’ Brands.

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

41. Expertise Source Credibility Credibility can be enhanced if the source’s qualifications are perceived asrelevant to the product being endorsed. If they are seen as experts.

42. 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’

43. 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

44. The goal of the “got Milk” campaign is to reverse the 30-year decline in milk consumption by increasing consumers’ awareness of the nutritional value of milk and changing their attitudes toward the product. • Celebrities and athletes are appropriate endorser for a product such as milk since they are highly recognizable and respected (at least most are)

45. Drawbacks of using Celebrities $ $ Pepsi Shaquille O'Neal $25 million NikeTiger Woods $105 million Buick Tiger Woods $40 million Reebok Venus Williams $40 million Reebok Allen Iverson $100 million Shick Andre Agassi $19 million Nike Michael Jordan $40 million

46. Drawbacks of using Celebrities

47. Buick Onstar Electronic arts

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

49. 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)

50. 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.