1. Attitudes Mktg 450 Fall 2005

2. 2 Subliminal?

3. Fall 20053 Agenda Attitude Concept – ABC Model Expectancy-Value Model Importance-Performance Competitive Strategy

4. Fall 20054 What is an Attitude? A learned predisposition to behave in a consistently favorable or unfavorable way with respect to a given object.

5. Fall 20055 Predisposition to Behave? Attitudes guide our behavior Even toward novel objects But there are other factors such as norms, personality, and situational constraints.

6. Fall 20056 Consistently favorable or unfavorable way? As was true with personality, we look to consistency to determine the nature of the predisposition What is the difference between an attitude and a personality trait?

7. Fall 20057 Consistently favorable or unfavorable way? Attitudes reflect consistency toward a specific object or class of objects Personality is reflected by consistency toward different objects

8. Fall 20058 With respect to a given object? We don’t just have an attitude It is always an attitude toward something An object, a person, an activity, an idea

9. Fall 20059 Marketers’ Interest in Attitudes Analyze current products –Identify dislikes about products –Develop new, improved versions Analyze communications –Select copy points that Highlight the product’s strengths Minimize the product’s weaknesses

10. Fall 200510 Aromas for Young Males

11. Fall 200511 Attitude toward Everything?

12. Fall 200512 Tricomponential (ABC) Attitude Model Affect Beliefs Conations Affect - Likes & Dislikes Beliefs - Has & Does not Have Conations - Wants & Don't Wants

13. Fall 200513 Tricomponential Attitude Model Affect (emotions) – likes & dislikes –I like sweet drinks, I don’t like sugarfree drinks Beliefs (cognitions) – association of characteristics with some object –Object Y has characteristic x i – Coca Cola comes in a red can; is highly carbonated Conations (intentions) – wants & don’t wants – I want a new coat; I don’t want to eat at McDonald’s

14. Fall 200514 CLASSIFYING ATTITUDES... I knew that I would be needing a second car. My eldest boy just turned 16 and we only had a station wagon. As it was, my wife and I had to share that car. I wanted a car with lots of head room. My neighbor had a Ford Taurus and it had lots of head room. I like that. So on a Saturday morning we went to several dealers to look at cars -- GM and Fords. I wasn't going to buy a Chrysler because I had a bad experience with one in the sixties. I promised myself then that I would never buy another one and I never have.

15. Fall 200515 Classify each highlighted statement as a –Belief (thoughts) –Affect (feelings) –Conation (actions)

16. Fall 200516 CLASSIFYING ATTITUDES... I knew that I would be needing a second car. My eldest boy just turned 16 and we only had a station wagon. As it was, my wife and I had to share that car. I wanted a car with lots of head room. My neighbor had a Ford Taurus and it had lots of head room. I like that. So on a Saturday morning we went to several dealers to look at cars -- GM and Fords. I wasn't going to buy a Chrysler because I had a bad experience with one in the sixties. I promised myself then that I would never buy another one and I never have.

17. Fall 200517 CLASSIFYING ATTITUDES... I knew that I would be needing a second car. My eldest boy just turned 16 and we only had a station wagon. As it was, my wife and I had to share that car. I wanted a car with lots of head room. My neighbor had a Ford Taurus and it had lots of head room. I like that. So on a Saturday morning we went to several dealers to look at cars -- GM and Fords. I wasn't going to buy a Chrysler because I had a bad experience with one in the sixties. I promised myself then that I would never buy another one and I never have.

18. Fall 200518 CLASSIFYING ATTITUDES... I knew that I would be needing a second car. My eldest boy just turned 16 and we only had a station wagon. As it was, my wife and I had to share that car. I wanted a car with lots of head room. My neighbor had a Ford Taurus and it had lots of head room. I like that. So on a Saturday morning we went to several dealers to look at cars -- GM and Fords. I wasn't going to buy a Chrysler because I had a bad experience with one in the sixties. I promised myself then that I would never buy another one and I never have.

19. Fall 200519 CLASSIFYING ATTITUDES... I knew that I would be needing a second car. My eldest boy just turned 16 and we only had a station wagon. As it was, my wife and I had to share that car. I wanted a car with lots of head room. My neighbor had a Ford Taurus and it had lots of head room. I like that. So on a Saturday morning we went to several dealers to look at cars -- GM and Fords. I wasn't going to buy a Chrysler because I had a bad experience with one in the sixties. I promised myself then that I would never buy another one and I never have.

20. Fall 200520 We looked at a lot of cars that morning. I found out that the Mercury Sable and the Taurus had virtually the same engines and frames, but I still liked the Taurus better. We also decided that we liked the Sports option that made the car looked better. Our station wagon was a dull car.

21. Fall 200521 We looked at a lot of cars that morning. I found out that the Mercury Sable and the Taurus had virtually the same engines and frames, but I still liked the Taurus better. We also decided that we liked the Sports option that made the car looked better. Our station wagon was a dull car. One day about a week later, my son came home and said that he had seen just the car we wanted. It had bucket seats and everything else we wanted. It had bucket seats -- in fact, it turned out that is all it had.

22. Fall 200522 Tricomponential Attitude Model Affect Beliefs Conations Affect - Likes & Dislikes Beliefs - Has & Does not Have Conations - Wants & Don't Wants

23. Fall 200523 Expectancy Value Attitude Model Affect Beliefs Conations Affect - Likes & Dislikes Beliefs - Has & Does not Have Conations - Wants & Don't Wants

24. Measuring Attitudes: Expectancy-Value Attitude Model where A o = attitude toward the object (product or person) B i = individual's belief about the likelihood that the object has characteristic i a i = individual's evaluation of characteristic i

25. Beliefs Probabilistic thoughts about what characteristics are possessed by an object or person. P (Brand has characteristic x i )

26. Beliefs B 1 – What is the likelihood that Crest will prevent cavities? Very +3 +2 +1 0 -1 -2 -3 Very Likely Unlikely B 2 – What is the likelihood that Crest will whiten your teeth? Very +3 +2 +1 0 -1 -2 -3 Very Likely Unlikely

27. Beliefs B 1 – What is the likelihood that Crest will prevent cavities? Very +3 +2 +1 0 -1 -2 -3 Very Likely Unlikely B 2 – What is the likelihood that Crest will whiten your teeth? Very +3 +2 +1 0 -1 -2 -3 Very Likely Unlikely

28. Evaluation of Beliefs Evaluation of beliefs concerns whether objects or persons with these characteristics are judged to be good or bad.

29. Evaluation of Beliefs a 1 – A toothpaste that prevents cavities? Very +3 +2 +1 0 -1 -2 -3 Very Good Bad a 2 – A toothpaste that whitens your teeth? Very +3 +2 +1 0 -1 -2 -3 Very Good Bad

30. Evaluation of Beliefs a 1 – A toothpaste that prevents cavities? Very +3 +2 +1 0 -1 -2 -3 Very Good Bad a 2 – A toothpaste that whitens your teeth? Very +3 +2 +1 0 -1 -2 -3 Very Good Bad

31. Attitudes from Beliefs (++) B 1 – What is the likelihood that Crest will prevent cavities? Very +3 +2 +1 0 -1 -2 -3 Very Likely Unlikely a 1 – A toothpaste that prevents cavities is? Very +3 +2 +1 0 -1 -2 -3 Very Good Bad

32. Attitudes from Beliefs (+-) B 1 – What is the likelihood that Crest contains preservatives? Very +3 +2 +1 0 -1 -2 -3 Very Likely Unlikely a 1 – A toothpaste that contains preservatives is? Very +3 +2 +1 0 -1 -2 -3 Very Good Bad

33. Attitudes from Beliefs (-+) B 1 – What is the likelihood that Crest will be inexpensive? Very +3 +2 +1 0 -1 -2 -3 Very Likely Unlikely a 1 – A toothpaste that is inexpensive is? Very +3 +2 +1 0 -1 -2 -3 Very Good Bad

34. Attitudes from Beliefs (--) B 1 – What is the likelihood that Crest will have imperfections? Very +3 +2 +1 0 -1 -2 -3 Very Likely Unlikely a 1 – A toothpaste that has imperfections is? Very +3 +2 +1 0 -1 -2 -3 Very Good Bad

35. Attitudes B1B1 B2B2 a1a1 a2a2 Ao +3

36. Attitudes B1B1 B2B2 a1a1 a2a2 Ao +3 18 B 1 *a 1 B 2 *a 2

37. Attitudes B1B1 B2B2 a1a1 a2a2 Ao +3 18 +3 -3 -18 -3 +3 -18 -3 +18

38. Attitudes B1B1 B2B2 a1a1 a2a2 Ao 7777 77 11 11 77 1111

39. Attitudes B1B1 B2B2 a1a1 a2a2 Ao 777798 77 1114 11 77 11112

40. Discover Desired Features Not Provided by Product B 1 – What is the likelihood that Crest will whiten teeth? Very +3 +2 +1 0 -1 -2 -3 Very Likely Unlikely a 1 – A toothpaste that whitens teeth? Very +3 +2 +1 0 -1 -2 -3 Very Good Bad

41. Extra Whitening Crest or Dual Whitening Crest

42. Fall 200542 Colgate Can Not Fall Behind

43. Discover Undesirable Features B 1 – What is the likelihood that Coke is caffeinated? Very +3 +2 +1 0 -1 -2 -3 Very Likely Unlikely a 1 – A caffeinated soft drink? Very +3 +2 +1 0 -1 -2 -3 Very Good Bad

44. Caffeine-free Coke

45. Discover Unchangeable Features aren’t Desirable B 1 – What is the likelihood that Listerine has a strong taste? Very +3 +2 +1 0 -1 -2 -3 Very Likely Unlikely a 1 – A strong tasting mouthwash? Very +3 +2 +1 0 -1 -2 -3 Very Good Bad

46. Original Listerine MouthwashOriginal Listerine Mouthwash has a powerful long-lasting burst of clean, brisk flavor that tells you it is working to kill germs.

47. Fall 200547 Listerene Better Tasting

48. Discover Competitor’s Features are not Desirable B 1 – What is the likelihood that Starbucks is bitter? Very +3 +2 +1 0 -1 -2 -3 Very Likely Unlikely a 1 – A bitter coffee? Very +3 +2 +1 0 -1 -2 -3 Very Good Bad

49. Fall 200549 Cable versus Satellite CableSatellite

50. Fall 200550 Cable versus Satellite Cable (as described in satellite ads) Satellite (as described in cable ads) Constant price increases Poor service Bad picture No local stations Works on only a few sets in a house Affected by weather Ugly dish on side of house

51. Fall 200551 Satellite TV Ad

52. Fall 200552 Cable TV Ad

53. Discover Competitive Parity B 1 – What is the likelihood that Lexus is a reliable car? Very +3 +2 +1 0 -1 -2 -3 Very Likely Unlikely B 1 – What is the likelihood that BMW is a reliable car? Very +3 +2 +1 0 -1 -2 -3 Very Likely Unlikely a 1 – A reliable car is? Very +3 +2 +1 0 -1 -2 -3 Very Good Bad

54. Fall 200554

55. Fall 200555 Match Benefits

56. Fall 200556 Colgate has a Different Idea

57. Multi-Care Crest Fights cavities. Protects against acids that cause cavities. Fights tartar build-up above the gum-line. Foaming action helps carry protection to entire surface of teeth. Leaves a long lasting clean feel. Baking Soda that leaves teeth feeling slick and smooth. Leaves breath feeling refreshed....All in One Toothpaste!

58. Fall 200558 Colgate Outdoes Crest

59. Fall 200559 Colgate Total

60. Fall 200560 Healthy Teeth?

61. Implications from Attitudes 1.Emphasize features desired by consumers 2.Alter or drop features not desired 3.Make existing features more desirable 4.Make competitors’ features less desirable 5.Create new features 6.Do Features Matter?

62. Fall 200562 Anyone Care?

63. Implications from Attitudes 1.Emphasize features desired by consumers 2.Alter or drop features not desired 3.Make existing features more desirable 4.Make competitors’ features less desirable 5.Create new features 6.Do Features Matter? 7.Avoid Compromise Features.

64. Fall 200564 Selling Compromises Features

65. Fall 200565 Importance-Performance Analysis

66. Fall 200566 Using Importance-Performance with Competitors’ Data – High Importance Our Performance Competitor’s Performance Simultaneous Result Poor Neglected Opportunity PoorGoodCompetitive Disadvantage GoodPoorCompetitive Advantage Good Head-to-Head Competition

67. Fall 200567 Using Importance-Performance with Competitors’ Data – Low Importance Our Performance Competitor’s Performance Simultaneous Result Poor Null Opportunity PoorGoodFalse Alarm GoodPoorFalse Advantage Good False Competition

68. Fall 200568 Marketing Warfare

69. Fall 200569 Basic Assumptions Markets are competitive Competitors are rarely of equal strength Competitive strategy is dictated by one’s relative strength Proper deployment of assets is key to success –I.e., what you do with your assets is as important as the strength of your assets.

70. Fall 200570 How Markets Divide Themselves Leader - > 30% share Challenger - 15-30% share Flanker - 5 - 15% share Nichers - 1% or less

71. Fall 200571 Carbonated Soft Drinks Brand2003 Share Coke Classic (Coke)18.6% Pepsi (Pepsi)11.9% Diet Coke (Coke)9.4% Mt Dew (Pepsi)6.3% Sprite (Coke)5.9% Diet Pepsi (Pepsi)5.8% Dr Pepper (Cadbury)5.7% CF Diet Coke (Coke)1.7% Sierra Mist (Pepsi)1.4% Seven Up (Cadbury)1.2%

72. Fall 200572 Carbonated Beverage Market Company 2003 Share Coke 44.1% Pepsi 31.8% Cadbury 14.3% Cott 4.7% National Beverage 2.4% Red Bull 0.2%

73. Fall 200573 Coca Cola

74. Fall 200574 Leader Strategy

75. Fall 200575 Leader – Defend Position ApproachExamples Adopt an Aggressive Offense against the competition Microsoft vs Lotus & WordPerfect

76. Fall 200576 Leader – Defend Position ApproachExamples Adopt an Aggressive Offense against the competition Microsoft vs Lotus & WordPerfect Use resources to increase the cost of competition UPS

77. Fall 200577 Package Delivery Market

78. Fall 200578 UPS Strategy

79. Fall 200579 UPS Strategy Wanted to expand share in Ground Deliveries Purchased Mailboxes Etc. A key point of contact for FedEx

80. Fall 200580 FedEx Initially Tried to Remake Itself Consumer research reveals that consumers have 2 key considerations when using the FedEx dropoff sites –Prepared – knows how the system works and need little assistance –Assurance – how likely is that this transaction will be completed as I want it to.

81. Fall 200581 FedEx Research PREPAREDUNPREPARED Do Not Crave Reassurance FrisbeeDo It Yourself Crave Reassurance ConfirmersHigh Maintenance

82. Fall 200582 FedEx Research PREPAREDUNPREPARED Do Not Crave Reassurance Drop Box Inside Front Door Self-Service Station at Front Crave Reassurance Feedback (put through slots) Counter in the Back

83. Fall 200583 Proposed Storefront Image

84. Fall 200584 Better Strategy

85. Fall 200585 FedEx-Kinkos

86. Challenger Strategy

87. Fall 200587 Challenger – Focus on Leader ApproachExamples Attack Leader’s weakness but narrowly Pepsi Consider turning leader’s strength into weakness Netscape

88. Flanker Strategy

89. Fall 200589 Flanker – Focus on Overlooked Areas ApproachExamples Segment market to identify unmet needs Avoid direct competition with leader and challenger

90. Fall 200590 Flanker – Focus on Overlooked Areas ApproachExamples Segment market to identify unmet needs Chrysler Avoid direct competition with leader and challenger Virgin

91. Nicher Strategy

92. Fall 200592 Nichers/Guerillas – Find areas not attractive to Others ApproachExamples Think smallJolt Subaru Be prepared to quit when competition heats up Hummer Microbrews Snapple

93. Fall 200593 How Markets Divide Themselves Leader - > 30% share Challenger - 15-30% share Flanker - 5 - 15% share Nichers - 1% or less

94. Fall 200594 Marketing Warfare – Video Games

95. Fall 200595 Video Game Warfare StrengthsWeaknesses Sony (65%) Microsoft (17%) Nintendo (15%)

96. Fall 200596 Future SonyPlayStation 3March 2006 Blu-Ray DVD MicrosoftxBox 360 Nov 2005 Hard Drive Web downloads NintendoRevolutionMarch 2006 mystery features

97. Fall 200597 Battle Field

98. Fall 200598 Humble Beginnings 13,614 Versus 7,727 Outlets

99. Fall 200599 1 st Wendy’s ( Columbus Ohio 1969 ) 6,000 outlets

100. Fall 2005100 1 st Jack in the Box ( San Diego - 1951 ) 2,000 Outlets 17 states

101. Fall 2005101

102. Fall 2005102 Constant Combat

103. Fall 2005103 A Battle of Words as Well as Food

104. Fall 2005104 Fast Food Attitudes FAST FOOD CHAIN MENU VARIETY POPULARI TY w/ Child FOOD QUALITY PRICEOVERALL PREFER BURGER KING 2.93.83.73.83.6 JACK IN THE BOX 3.3 3.03.33.2 McDONALDS' 3.34.43.64.03.8 WENDY’S 3.03.54.12.63.4 RELATIVE IMPORTANCE WEIGHTS.22.23.30.25

105. Fall 2005105 Overall Attitudes 3.6 = 2.9*.22 + 3.8*.23 + 3.7*.30 + 3.8*.25

106. Fall 2005106 Battle of Words & Toys McDonaldsI’m Lovin’ ItChicken Little (Disney) Burger KingHave It Your WayStar Wars III Wendy’s“It’s Better Here” “Do Wendy’s. Do What Tastes Right” Maya & Miguel ( PBS KIDS GO!) Jack in the Box We Don’t Make It ‘til You Order It Not for Kids

107. Fall 2005107 McDonalds-1

108. Fall 2005108 Burger King -1

109. Fall 2005109 Burger King -2

110. Fall 2005110 Wendys

111. Fall 2005111 Jack in the Box - 1

112. Fall 2005112 Battle of Words & Toys McDonaldsI’m Lovin’ ItIncredibles Burger KingHave It Your WaySponge Bob Wendy’sIt’s Better HereElf Jack in the Box We Don’t Make It ‘til You Order It ?????

113. Fall 2005113 McDonalds ( adults ) - 2

114. Fall 2005114 McDonalds (dryer) - 3

115. Fall 2005115 Wendy’s 2004

116. Fall 2005116 McDonalds (Fries)

117. Fall 2005117 Burger King - 2004

118. Fall 2005118 Burger King - Ugoff

119. Fall 2005119 Jack in the Box ( language ) - 2

120. Fall 2005120 JBX

121. Fall 2005121 Competitive Strategy LeaderUse strengths to defend leadership position via offensive actions ChallengerNarrowly attack leader’s weakness FlankerIdentify unmet needs in overlooked segments (large) NicherIdentify unmet needs in overlooked (small) segments that can be defended

122. Fall 2005122 Video Game Wars

123. Fall 2005123 Leader – Sports Games Electronic Arts (63% share in sports) –John Madden NFL Football –Tiger Woods Golf –MBAs & focus groups Take Two (Grand Theft Auto) –ESPN Football (dropped price to $20) –Outlaw Golf (tattooed convicts & bikini clad women) –Sex and Violence crazed developers

124. Fall 2005124 Leader – Sports Games Take Two –Dropped price of ESPN Football to $20 Electronic Arts –Dropped price of John Madden to $30

125. Fall 2005125 Leader – Video Game Units

126. Fall 2005126 Leader – Video Game Revenue

127. Fall 2005127 Leader – Sports Games Electronic Arts –Paid for $400 million for exclusive NFL rights (5 years) –Paid for $800 million for exclusive ESPN rights (15 years) –Deals with NCAA and Arena Football League Take Two ? –Deal with Major League Baseball Others? –Sony created fictional football game with players engaged in edgy off-field activities (gambling) not permitted by NFL

128. Fall 2005128 Challenger – Miller Lite

129. Fall 2005129 Flanker – Wendy’s

130. Fall 2005130 Nicher – Jones Soda