1. © 2008 by Nelson, a division of Thomson Canada Limited 1 Customer Behaviour A Managerial Perspective First Canadian Edition Jagdish N. Sheth Emory University Banwari Mittal Northern Kentucky University Michel Laroche Concordia University

2. © 2008 by Nelson, a division of Thomson Canada Limited 2 CHAPTER 6 Customer Attitudes: Cognitive and Affective

3. © 2008 by Nelson, a division of Thomson Canada Limited 3 Conceptual Framework Payer UserBuyer Attitudes Three-Component Model Cognition Affect Conation Attitudes Multiattribute Models Functional Theory of Attitude Attitude Change Psychological Processes 1.Learning theories 2.Attribution processes 3.Cognitive Consistency theories 4.High/Low Involvement Information Processing

4. © 2008 by Nelson, a division of Thomson Canada Limited 4 Attitude: Definition and Characteristics Attitudes are learned predispositions to respond to an object or class of objects in a consistently favourable or unfavourable way Attitudes are learned predispositions to respond to an object or class of objects in a consistently favourable or unfavourable way

5. © 2008 by Nelson, a division of Thomson Canada Limited 5 Attitudes as Evaluations Attitudes are our evaluations of: Attitudes are our evaluations of:  Objects  People  Places  Brands  Products  Organizations, etc. People evaluate these in terms of their goodness, likability, or desirability People evaluate these in terms of their goodness, likability, or desirability

6. © 2008 by Nelson, a division of Thomson Canada Limited 6 Three Underlying Dimensions to Global Attitude Cognition Cognition  Knowledge Affect Affect  Feeling Conation Conation  Action

7. © 2008 by Nelson, a division of Thomson Canada Limited 7 Brand Belief Beliefs are expectations as to what something is or is not or what something will or will not do Beliefs are expectations as to what something is or is not or what something will or will not do  Descriptive  Evaluative  Normative Brand belief is a thought about a specific property or quality of the brand Brand belief is a thought about a specific property or quality of the brand

8. © 2008 by Nelson, a division of Thomson Canada Limited 8 Illustrative Measures of the Three- Component Model of Attitude DHL, for Shipping a Business’s Small Packages Attitude Component Shopping for Airline Tickets on the Internet DHL is very reliable in its service. DHL is more economical than other package carrier services. DHL is able to customize its service to my shipping needs. Cognitions or Beliefs For my airline tickets, shopping on the internet is very convenient. You can find the cheapest fares by shopping on the internet. Internet based travel agents do not offer you a comprehensive set of airline and flight options. When I ship by DHL, I feel secure. I am very happy to be suing DHL for my shipping needs. I don’t care if DHL goes out of business. Affect or Feelings Shopping on the Internet is: (please circle as many as apply) Totally coolBoringConfusing A pain in the neckEnjoyableTerrible I use DHL for my shipping more than I use other carriers. I am often recommending DHL to other business associates. I am looking for alternative carriers. Conations or Actions I have used Internet for my travel airline tickets recently. I often search Internet for planning my travel itinerary. Attitude Object

9. © 2008 by Nelson, a division of Thomson Canada Limited 9 Hierarchies In Attitude Attitude hierarchy refers to the sequence in which the three components occur Attitude hierarchy refers to the sequence in which the three components occur  Learning  Emotional  Low Involvement

10. © 2008 by Nelson, a division of Thomson Canada Limited 10 Learning Hierarchy of Attitude LEARNING Cognitive (thoughts) Affective (feelings) Conative (actions)

11. © 2008 by Nelson, a division of Thomson Canada Limited 11 Emotional Hierarchy of Attitude EMOTIONAL Cognition (thoughts) Affect (feelings) Conation (actions)

12. © 2008 by Nelson, a division of Thomson Canada Limited 12 Low Involvement Hierarchy of Attitude LOW INVOLVEMENT Cognition (thoughts) Affect (feelings) Conation (actions)

13. © 2008 by Nelson, a division of Thomson Canada Limited 13 Degrees of Involvement and Types of Attitude Hierarchy Emotional Hierarchy Begins with intense emotions Rational Hierarchy Begins with consideration of multiple features Begins with mood Begins with consideration of one or two features Low- involvement hierarchy High Involvement Low Involvement

14. © 2008 by Nelson, a division of Thomson Canada Limited 14 Consistency Among the Three Components Consistency can be related to two factors: Consistency can be related to two factors:  Valence  Attitude valence refers to favourable and unfavourable thoughts, feelings, and actions  Intensity (strength)  Attitude strength refers to the degree of commitment one feels toward a cognition or feeling or action

15. © 2008 by Nelson, a division of Thomson Canada Limited 15 Three Attitude Components in Mutual Interdependence Cognitive (thoughts) Affective (feelings) Conative (actions)

16. © 2008 by Nelson, a division of Thomson Canada Limited 16 Molding Customer Attitude Three avenues of attitude molding: Three avenues of attitude molding:  Via cognitive change  Via affective change  Via behaviour (conative) change

17. © 2008 by Nelson, a division of Thomson Canada Limited 17 Methods of Influencing the Customer’s Behaviour Incentives Incentives Structuring the physical environment Structuring the physical environment Business procedures Business procedures Government mandates Government mandates Information structuring Information structuring

18. © 2008 by Nelson, a division of Thomson Canada Limited 18 The Psychological Processes Underlying Attitude Change Four major groups of theories: Four major groups of theories:  Learning theories  Attribution theory  Cognitive consistency theories  High- and low-involvement information processing

19. © 2008 by Nelson, a division of Thomson Canada Limited 19 Learning Theories Learning is a pathway to attitude change Learning is a pathway to attitude change The four learning theories are: The four learning theories are:  Classical conditioning  Instrumental conditioning  Modelling  Cognitive learning

20. © 2008 by Nelson, a division of Thomson Canada Limited 20 Attribution Processes Attribution processes are set in motion when the customer first engages in some behaviour that is incongruent with his or her initial attitude Attribution processes are set in motion when the customer first engages in some behaviour that is incongruent with his or her initial attitude  Self-perception theory  Attribution theory  Foot-in-the-door strategy  Door-in-the-face strategy  Norm of reciprocity

21. © 2008 by Nelson, a division of Thomson Canada Limited 21 Cognitive Consistency Theories Concept: Concept:  Various cognitions people hold have to be consistent with one another Festinger’s cognitive dissonance theory Festinger’s cognitive dissonance theory Heider’s balance theory Heider’s balance theory

22. © 2008 by Nelson, a division of Thomson Canada Limited 22 Cognitive Dissonance Theory Buyer’s Remorse According to Festinger’s dissonance theory this happens because two cognitions are in dissonance: According to Festinger’s dissonance theory this happens because two cognitions are in dissonance:  The cognition that the decision has been made  The cognition that the decision may not have been the best

23. © 2008 by Nelson, a division of Thomson Canada Limited 23 Heider’s Balance Theory Cognitive Consistency According to Heider’s balance theory, when a respected opinion leader endorses an issue not initially favoured by a person: According to Heider’s balance theory, when a respected opinion leader endorses an issue not initially favoured by a person:  The person would either lower the opinion leader in his or her esteem or  Become more favourable toward the endorsed issue

24. © 2008 by Nelson, a division of Thomson Canada Limited 24 High- and Low-Involvement Information-Processing Modes Central processing route Central processing route  The customer attends to and scrutinizes message content actively and thoughtfully Peripheral processing route Peripheral processing route  The consumer attends to the message only cursorily, and tends to make quick inferences by simply looking at the elements in the ad

25. © 2008 by Nelson, a division of Thomson Canada Limited 25 Multiattribute Models of Attitude Overall attitude is based on the component beliefs about the object, weighted by the evaluation of those beliefs Overall attitude is based on the component beliefs about the object, weighted by the evaluation of those beliefs  The Rosenberg model  The Fishbein model  The extended Fishbein model

26. © 2008 by Nelson, a division of Thomson Canada Limited 26 The Rosenberg Model A o is the overall attitude toward the object A o is the overall attitude toward the object I j is the importance of value j I j is the importance of value j V j is the instrumentality of the object in obtaining value j V j is the instrumentality of the object in obtaining value j η is the number of values η is the number of values AoAo =Σ Ij ×VjIj ×Vj j= 1 η

27. © 2008 by Nelson, a division of Thomson Canada Limited 27 The Fishbein Model A o is the overall attitude toward the object A o is the overall attitude toward the object B i is the belief that object i has a certain consequence B i is the belief that object i has a certain consequence E i is the evaluation of that consequence E i is the evaluation of that consequence η is the number of consequences η is the number of consequences AoAo = Σ Bi ×EiBi ×Ei i= 1 η

28. © 2008 by Nelson, a division of Thomson Canada Limited 28 Example of Customer Attitudes: Two Internet Service Providers AttributeAmerica OnlineAT&TEvaluation of Consequences 1. Connection will be established successfully every time. 35+3 2. The connection will be established speedily. 43+2 3. The connection will be dropped in the middle of the session. 33-3 4. The price (monthly fee) will be high.25 (Very bad -3 -2 -1 0 +1 +2 +3 Very good) EVALUATION OF ATTRIBUTE (UNLIKELY 1 2 3 4 5 LIKELY)

29. © 2008 by Nelson, a division of Thomson Canada Limited Schematic of Fishbein’s Extended Model Beliefs about consequences from behaviour (B i ) Evaluations of consequences from behaviour (E i ) Motivation to comply with subjective norms (MC j ) Normative Beliefs related to different sources (NB j ) Subjective Norms (SN) Attitude (A act ) Behaviour (B) Behavioural Intention (BI)

30. © 2008 by Nelson, a division of Thomson Canada Limited 30 Social Norms Along with attitude, a person’s behaviour depends on social norms Along with attitude, a person’s behaviour depends on social norms  Subjective norms  Others’ desires or expectations from us

31. © 2008 by Nelson, a division of Thomson Canada Limited B= where B=overt behaviour (I.e., brand purchase) BI=behavioural intention or purchase intention A act =attitude toward purchase of brand SN=subjective norm w 1 and w 2 =empirically determined evaluation weights A act = where B i =belief that performance of a certain behaviour-brand purchase-will lead to an anticipated outcome Fishbein’s Extended Model of Behaviour

32. © 2008 by Nelson, a division of Thomson Canada Limited 32 Fishbein’s Extended Model of behaviour (cont’d) E i =evaluation of an anticipated outcome, either a positive benefit or the avoidance of a negative consequence i=anticipated outcome 1, 2, …m SN= where SN=subjective norm-the motivation toward an act as determined by the influence of significant others NB j =normative beliefs-belief that significant others (j) expect the consumer to engage in an action MC j =motivation to comply-the extent to which the consumer is motivated to realize the expectations of significant others (j) j=significant other 1,2,…n

33. © 2008 by Nelson, a division of Thomson Canada Limited 33 Use of Multiattribute Models According to the multiattribute model, we can change customer attitudes in three ways: According to the multiattribute model, we can change customer attitudes in three ways:  By changing a specific component belief, which can be done by changing the perception of the corresponding attribute level or associated consequence  By changing the importance customers assign to an attribute or the evaluation of that consequence  By introducing a new attribute into customers’ evaluation process

34. © 2008 by Nelson, a division of Thomson Canada Limited 34 The Functional Theory of Attitude Utilitarian Utilitarian Ego defense Ego defense Value expressive Value expressive Knowledge Knowledge

35. © 2008 by Nelson, a division of Thomson Canada Limited 35 Functions of Attitudes DEFINITIONFUNCTIONEXAMPLE Related to whether the object serves some utility UtilitarianI prefer no-crease jeans because they are easy to care for. Held to protect a person’s egoEgo-defensiveMy income may not be high, but I can buy this luxury car. Related to whether the object adds to a person’s knowledge KnowledgeI like to work with this salesperson, because he spends a lot of time learning my needs and explaining how his company’s products will help our company. Manifesting one’s existing valuesValue- expressive Every year I donate to the art institute and a local dance theater because the arts are a vital part of this community.

36. © 2008 by Nelson, a division of Thomson Canada Limited 36 Applying the Theory of Attitudes: Planned Social Change Eight strategies of planned social change: Eight strategies of planned social change:  Informing and educating  Persuasion and propaganda  Social controls  Delivery systems  Economic incentives  Economic disincentives  Clinical counselling and behaviour modification  Mandatory rules and regulations

37. © 2008 by Nelson, a division of Thomson Canada Limited 37 A Typology of Strategy Mix for Planned Social Change ATTITUDE POSITIVENEGATIVE Cell 1 Cell 3 ENGAGED Reinforced Strategy (Behavioural or Psychological) Rationalization Strategy Attitude Change (Psychological) Cell 2 Cell 4 NONENGAGED Inducement Strategy (Behavioural) Confrontation Process Strategy (Behavioural or Psychological) RELEVANT BEHAVIOUR

38. © 2008 by Nelson, a division of Thomson Canada Limited 38 Attitudes and the Three Customer Roles Customer attitudes Users like products they use, and dislike products they avoid. Payers have attitude towards credit. Buyers like some vendors more than others. Three- component- model Users hold beliefs about products, have feelings toward them, and manifest approach or avoidance behaviour. Payers have beliefs, feelings, and behaviours toward specific credit cards, and other forms of payment methods. Buyers have beliefs about the attributes of vendors, have feelings of like or dislike toward them, and patronize or ignore them, accordingly. Fishbein’s extended model Subjective norms dictate customer use or nonuse of many products/services. Subjective norms influence a person’s debt behaviour, and also spending norms for specific purchases. Subjective norms influence one’s choice of vendors. Government has list of approved vendors. High and low involvement Users are very involved with some products, exhibiting fanatic consumption. Payers differ in their concern with what happens to the money they pay. Some buyers are highly involved, others not. USERPAYERBUYER