1. 1 Consumer Decision Model INDIVIDUAL DIFFERENCES 1.Needs and Motivation 2.Personality 3.Information Processing & Perception 4. Learning Process 5.Knowledge 6.Attitude MARKETING STRATEGY DECISION PROCESS Problem Identification Information Search Alternative Evaluation Purchasing & Satisfaction IMPLICATION ENVIRONMENTAL FACTORS 1.Culture 2.Social-Economy 3.Family & Household 4.Reference Group 5.Situation

2. Attitudes Copyright © 2005 by The McGraw-Hill Companies, Inc. All rights reserved. McGraw-Hill/Irwin

3. 6-3 Attitude –A person’s overall evaluation of a concept Peter & Olson –What we like and dislike Blackwell What is an Attitude?

4. 6-4 Attitudes toward what? –Various physical and social objects –Intangible objects –Behaviors or actions What is an Attitude? cont.

5. 5 Consumer Attitudes Attitudes: represent what we like and dislike Attitudes determine intentions Holding a favorable attitude toward a product is often prerequisite for holding a favorable purchase or consumption intention

6. 6 Consumer Attitudes Attitudes: represent what we like and dislike Attitudes determine intentions Holding a favorable attitude toward a product is often prerequisite for holding a favorable purchase or consumption intention Preferences: represent attitudes toward one object in relation to another (way to measure attitudes)

7. 7 Consumer Attitudes Just because consumers prefer brand X, doesn’t mean they will necessarily buy brand X Having a favorable attitude toward a product is not the same as having a favorable attitude toward its purchase or consumption How can attitudes and preferences be measured?

8. 8 Attitude toward the object: How much do you like/dislike IBM computers? Like very much 1 2 3 4 5 Dislike very much Attitude toward the behavior: Buying an IBM personal computer would be: Very good 1 2 3 4 5 Very bad Very rewarding 1 2 3 4 5 Very punishing Very wise 1 2 3 4 5 Very foolish Preference: Compared to Apple personal computers, how much do you like IBM personal computers? Like IBM much 1 2 3 4 5 Like Apple much more than Apple more than IBM

9. 6-9 The Functions of Attitudes Utilitarian Function: use to obtain rewards and avoid punishments. Ego-Defensive Function: self-protection, e.g., smokers Knowledge Function: simplifies decisions, e.g., brand loyalty Value-Expressive Function: express identify to others. e.g., t-shirts.

10. 6-10 The ABC Model of Attitudes Affect: –The way a consumer feels about an attitude object Affect = “Feels” Behavior: –Involves the person’s intentions to do something with regard to an attitude object Behavior = “Do” Cognition: –The beliefs a consumer has about an attitude object Cognition = “Beliefs” Hierarchy of Effects: –A fixed sequence of steps that occur en route to an attitudeThe ABC Model of Attitudes

11. 6-11 Three Hierarchies of Effects

12. 6-12 Levels of attitude concepts

13. 6-13 Marketing implications –Brand equity Involves a strong, positive brand attitude Based on favorable meanings and beliefs Accessible in memory Creates a strong, favorable consumer-brand relationship What is an Attitude? cont.

14. 6-14 Can obtain brand equity in three ways –Build it –Borrow it –Buy it –Attitude tracking studies Marketers can use measures of consumers’ attitudes to indicate the success of marketing strategies What is an Attitude? cont.

15. 6-15 Attitudes Toward Objects cont. –Fishbein theory Evaluations of salient beliefs cause overall attitude Overall attitude is a function of two factors –Strengths of the salient beliefs associated with the object –Evaluation of those beliefs

16. 6-16 Attitudes Toward Objects cont. Salient beliefs –Activated beliefs –Only salient beliefs about an object create a person’s attitude toward that object –Many factors influence which beliefs about an object will be activated in a situation and thus become salient determinants of A o –Salient beliefs vary over time or situations for some products

17. 6-17 Attitudes Toward Objects cont. –Model components Belief strength –Perceived probability of association between an object and its relative attributes –Affected by past consumer experiences with an object –Typical number of salient beliefs about an attitude object unlikely to exceed seven to nine

18. 6-18 Attitudes Toward Objects cont. Belief evaluation –Reflects how favorably the consumer perceives that attribute –Not necessarily fixed over time or constant across different situations Marketing implications –Understanding customers –Diagnosis of marketing strategies –Understanding situational influences

19. 6-19 The Fishbein Equation The Basic Formula: A ijk = Σβ ijk I ik –Where: i = attribute j = brand k = consumer I = the importance weight given attribute I by consumer k β = consumer k’s belief regarding the extent to which brand j possesses attribute I A = a particular consumer’s (k’s) attitude score for brand j

20. 6-20 The Basic Multiattribute Model

21. 6-21 Attitudes Toward Objects cont. The multiattribute attitude model

22. 22 The Fishbein Model: Sample Results 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+29+20 -6 Brand Brand Brand AttributeEvaluation A B C Beliefs

23. 23 The Role of Beliefs in Attitude Formation The Ideal-Point Model A P = Σ W i (I i - X i ) A P = attitude toward product W i = importance of attribute i I i = ideal performance on attribute i X i = belief about product’s actual performance on attribute i n = number of salient attributes i = 1 n

24. 24 The Role of Beliefs in Attitude Formation The Ideal-Point Model Consumers indicate where they believe a product is located on scales representing the various levels of salient attributes Also report where ideal products would fall on these scales The closer ideal and actual ratings are, the more favorable the attitude

25. 25 The Ideal-Point Model: Sample Results Taste: sweet (1) - bitter (7) Carbonation: high (1) - low (7) Calories: high (1) - low (7) Fruit juices: high (1) - low (7) Price: high (1) - low (7) Total Score 6 223 3326 4545 4122 5543 1629 Impor- Ideal Brand Brand Attribute tance Point A B Beliefs

26. 26 Benefits of Using Multiattribute Attitude Models Diagnostic power: examine why consumers like or dislike products Simultaneous importance- performance grid Marketing implications for each cell

27. 27 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’s Simultaneous Importance Performance PerformanceResult

28. 28 Benefits of Using Multiattribute Attitude Models Can provide information for segmentation (based on importance of specific attributes) Useful in new product development Forecast performance of specific brands and attributes in market Guidance in development of attitude change strategies

29. 6-29 Strategic Applications of the Multiattribute Model Capitalize on Relative Advantage Strengthen Perceived Product/Attribute Linkages Add a New Attribute Influence Competitors’ Ratings

30. 6-30 Attitudes Toward Objects cont. Attitude-change strategies –Adding a new salient belief about the attitude object –Increasing the strength of an existing positive belief –Improving the evaluation of a strongly held belief –Making an existing favorable belief more salient