Attitudes, Intentions, and Behavior MKT 750 Dr. West

Agenda Understanding attitudes & behavior Building brands Preparing for Tivo case

Answer Key #YellowGreen#YellowGreen 1CE11any 2DA12BC 3EA13BE 4EE14EC 5EA15B or EB 6BE16EB or D 7AC17BD 8EE18BB 9B or DC or D19BA 10DC20AC

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

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

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)

Predicting Behavior Attitudes Preferences Intentions Behavior Social Norms

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

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

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

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 to taste most

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.—— —— ———— —— 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

Attitude Objects: A o Product Company Retailer Product attributes Brand associations (logo, symbol) Advertising and spokespersons

AntecedentsConsequences A company A brand A product Intention Behavior A store A ad A attributes

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 evaluation determine the favorability of one’s attitude toward the product

Social Norms Social Norms Theory of Reasoned Action: A Multi-Attribute Model Evaluation of Product Attributes Brand Beliefs Overall Product Evaluation Intention to Buy Behavior n A o =  b i e i + SN (Fishbein & Azjen) i =1 (e i )(b i )(A o )(BI)(B)

Running Shoes Shock absorbent Price less than $ Durability Comfort Desired color Arch support Total score Brand Brand Brand Attribute Evaluation (e i ) A B C Beliefs (b i )

Running Shoes Durability Comfort Shock absorbent Arch support Desired color Price less than $ Total score Brand Brand Brand Attribute Evaluation (e i ) A B C Beliefs (b i ) (9) (3) (-3) (6) (9) (3) (4) (2) (-2) (6) (2) (-4) (1) (3) (3) (3) (3) (-3)

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

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

Implications for Attitude Change Changing beliefs (b i ) Cadillac (Heritage Reborn) Changing attribute importance (e i ) Airbags & Safety Antibacterial soap

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

Influencing Consumer Attitudes: Beliefs (b i ) are easier to change than desired benefits (e i ). 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

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

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

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

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

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

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

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?

Assignment Read Chapter 7 Write-up the Tivo case