-- Daivata Chavan-Patil

-- Daivata Chavan-Patil
Consumer Behavior -- Daivata Chavan-Patil

Model of Consumer Behavior
Marketing and other stimuli Buyer’s black box Buyer’s responses Product Economic Product choice Price Technological Brand choice Place Political Dealer choice Promotion Cultural Buying Purchase timing Buyer decision Purchase amount Characteristics process $

Factors Influencing Consumer Behavior
Cultural Culture Subculture Social class Social Reference groups Family Roles and Status Personal Age & lifecycle stage Occupation Economic situation Lifestyle Personality and self-concept Psychological Motivation Perception Learning Beliefs & attitudes Buyer

Cultural Factors It exert a broad and deep influence on consumer behavior. Culture – the set of basic values, perceptions, wants, and behaviors learned by a member of society from family and other important institutions. Marketers are always trying to spot cultural shifts in order to discover new products that might be wanted. Each culture contains smaller subcultures, or groups of people with shared value systems based on common life experiences and situations. Subcultures includes nationalities, religions, racial groups, and geographic regions.

Social classes are society’s relatively permanent and ordered divisions whose members share similar values, interests, and behavior. Social class is not determined by a single factor, such as income, but is measured as a combination of occupation, income, education, wealth, and other variables. In some social systems, member of different classes are reared for certain roles and cannot change their social positions. Marketers are interested in social class because people within a given social class tend to exhibit similar buying behavior. Seven major American social classes: Upper uppers, Lower uppers, Upper middles, Middle class, Working class, Upper lowers, Lower lowers.

Social Factors Group – two or more people who interact to accomplish individual or mutual goals. Membership groups – groups that have a direct influence and to which a person belongs. Reference groups – serve as direct (face-to-face) or indirect points of comparison or reference in forming a person’s attitudes or behavior. People often are influenced by reference groups to which they do not belong. For example, an aspirational group is one to which the individual wishes to belong. Opinion leaders – people within a reference group, who, because of special skills, knowledge, personality, or other characteristics, exert influence on others.

Family members can strongly influence buyer behavior.
Marketers are interested in the roles and influences of the husband, wife, and children on the purchase of different products and services. Husband–wife involvement varies widely by product categories and by stage in the buying process. A person belongs to many groups–family, clubs, organizations. The person’s position in each group can be defined in terms of both role and status. A role consists of the activities people are expected to perform according to the persons around them. Each role carries a status reflecting the general esteem given to it by society.

Personal Factors Tastes in food, clothes, furniture, and recreation are often age related. Buying is also shaped by the stage of the family life cycle – the stages through which families might pass as they mature over time. Traditional family life-cycle stages include young singles and married couples with children. Marketers try to identify the occupational groups that have an above-average interest in their products and services. Computer software companies will design different products for brand managers, accountants, engineers, lawyers and doc.

A person’s economic situation will effect product choice.
Marketers of income-sensitive goods watch trends in personal income, savings, and interest rates. People coming from the same subculture, social class, and occupation may have quite different lifestyles. Lifestyle is a person’s pattern of living as expressed in his or her psychographics. It involves measuring consumers’ major AIO dimensions – activities (work, hobbies, shopping, sports, social events), interests (food, fashion, family, recreation), and opinions (about themselves, social issues, business, products).

Several research firms have developed lifestyle classifications
Several research firms have developed lifestyle classifications. The most widely used is SRI Consulting’s Values and Lifestyles (VALS) typology. VALS classifies people according to how they spend their time and money. It divides consumers into eight groups based on two major dimensions: self-orientation and resources. Personality refers to the unique psychological characteristics that lead to relatively consistent and lasting responses to one’s own environment. Personality is usually described in terms of traits such as self- confidence, dominance, sociability, autonomy, defensiveness, adaptability, and aggressiveness. e.g. coffee & sociability. The basic self-concept premise is that people’s possessions contribute to and reflect their identities; that is, “we are what we have.”

Psychological Factors
A motive (or drive) is a need that is sufficiently pressing to direct the person to seek satisfaction. Sigmund Freud assumed that people are largely unconscious about the real psychological forces shaping their behavior. He saw the person as growing up and repressing many urges. These urges are never eliminated or under perfect control, they emerge inn dreams, in slips of the tongue, in neurotic and obsessive behavior, or ultimately in psychoses. Thus, Freud suggested that a person does not fully understand his or her motivation.

Maslow’s hierarchy of needs
Self- actualization needs Self development and realization Esteem needs Self-esteem, recognition, status Social needs Sense of belonging, love Safety needs Security, protection Physiological needs Hunger, thirst

Marketing implications of Maslow
For a brand to be considered it must satisfy some need Hierarchical: lower needs met before upper needs Countries, cultures, segments can differ in focus on needs

Marketing implications of Maslow’s hierarchy(text: Table 8.1)
PHYSIOLOGICAL NEEDS Products Vitamins, herbal supplements, medicines, low-fat foods, exercise equipment, fitness clubs Marketing approaches Quaker Oatmeal--”Oh, what those oats can do!” Boost nutritional drink--”Your body will thank you.” Kaiser-Permanente--”More people turn to us for good health.” Ginkoba ginseng--”The thinking person’s supplement.” Advil--”Advanced medicine for pain.”

SAFETY NEEDS Products Car accessories, burglar alarm systems, retirement investments, insurance, smoke and carbon monoxide detectors Marketing approaches Allstate Insurance--”You’re in good hands with Allstate.” Ford Motor Company--”Only your mother is more obsessed with your safety.” Lysol Basin Tub & Tile Cleaner--”This is no place for germs.” Merrill Lynch--”A tradition of trust.”

BELONGINGNESS NEEDS Products Beauty aids, entertainment, clothing
Marketing approaches Carnival Cruise Lines--”The most popular cruise line in the world.” Sears Mainframe Junior Dept.--”Got to have the clothes.” Lady Foot Locker--”One store. Every woman.”

ESTEEM NEEDS Products Clothing, cars, jewelry, liquors, hobbies, beauty spa services Marketing approaches Jeep--”There’s only one.” Movado Museum Watch--”The making of a legendary classic.” Bombay Sapphire Dry Gin--”Pour something priceless.” BMW--”The ultimate driving machine.”

SELF-ACTUALIZATION NEEDS
Products Education, cultural events, sports, hobbies Marketing approaches Nike--”If you let me play, I will like myself more.” Outward Bound Schools--”The adventure lasts a lifetime.” Danskin--”Not just for dancing.”

A motivated person is ready to act
A motivated person is ready to act. How the person acts is influenced by his or her own perception of the situation. All of us learn by the flow of information through our five senses: sight, hearing, smell, touch, and taste. Perception is the process by which people select, organize, and interpret information to form a meaningful picture of the world. People can form different perceptions of the same stimulus because of three perceptual processes: selective attention, selective distortion, and selective retention. Selective attention – the tendency for people to screen out most of the information to which they are exposed – means that marketers have to work especially hard to attract the consumer's attention. Selective distortion – the tendency of people to interpret information in a way that will support what they already believe. Selective retention – people tend to retain information that supports their attitudes and beliefs.

Learning describes changes in an individual’s behavior arising from experience.
Learning occurs through the interplay of drives, stimuli, cue, responses, and reinforcement. A drive is strong internal stimulus that calls for action. Drive becomes a motive when it is directed toward a particular stimulus object. Cues are minor stimuli that determine when, where, and how the person responds. After buying if the experience is rewarding than consumer response to the selected good will be reinforced.

Through doing and learning, people acquire beliefs and attitudes.
A belief is a descriptive thought that a person has about something. Beliefs may be based on real knowledge, opinion, or faith, and may or may not carry an emotional charge. Marketers are interested in the beliefs that people formulate about specific products and services, because these beliefs make up product and brand images that affect buying behavior. Attitude describes a person’s relatively consistent evaluations, feelings, and tendencies toward an object or idea. Attitude are difficult to change. A person’s attitudes fit into a pattern, and to change one attitude may require difficult adjustments in many others.

Buyer Decision Process
Need recognition Information search Evaluation of alternatives Purchase decision Postpurchase behavior

Need Recognition & Information Search
The need can be triggered by internal stimuli when one of the person’s normal needs – hunger, thirst, sex – rises to a level high enough to become a drive. A need can also be triggered by external stimuli. e.g. word-of-mouth, advertisements. The consumer can obtain information from any of several sources. These include personal sources, commercial sources, public sources and experiential sources. Commercial sources normally inform the buyer, but personal sources legitimize or evaluate products for the buyer.

Evaluation of Alternatives & Purchase Decision
The consumer arrives at attitudes toward different brands through some evaluation procedure. How consumer go about evaluating purchase alternatives depends on the individual consumer and the specific buying situation. In some cases, consumers use careful calculations and logical thinking. At other times, the same consumers do little or no evaluating; instead they buy on impulse and rely on intuition. Two factors that affects the consumer’s purchase decision. Attitudes of others. Unexpected situational factors.

Postpurchase Behavior
The answer to whether the buyer is satisfied or dissatisfied with a purchase lies in the relationship between the consumer’s expectations and the product’s perceived performance. Almost all major purchases result in cognitive dissonance, or discomfort caused by postpurchase conflict. Company’s sales come from two basic groups – new customers and retained customers. A satisfied customer tell 3 people about a good product experience, a dissatisfied customer gripes to 11 people. Some 96 percent of unhappy customers never tell the company about their problem.

The Buyer Decision Process For New Products
A good, service or idea that is perceived by some potential customers as new. Adoption process – the mental process through which an individual passes from first hearing about an innovation to final adoption. Consumers go through five stages in the process of adopting a new product: Awareness Interest Evaluation Trial Adoption

Individual Differences in Innovativeness
34% Late majority 34% Early majority 2.5% Innovators . 13.5% Early adopters 16% Laggards X – 2a X – a X X + 2a Time of adoption of innovation

Influence of Product Characteristics on Rate of Adoption
Five characteristics are especially important in influencing an innovation’s rate of adoption. For example, consider the characteristics of HDTV (High-definition television) in relation to the rate of adoption. Relative advantage (superior to existing products) Compatibility (fits the values and experiences of potential customers) Complexity (difficult to understand or use) Divisibility (tried on a limited basis but still very expensive) Communicability (results of using can be observed or described to others)

Business Markets The business market is huge.
Many sets of business purchases were made for only one set of consumer purchases. The main differences between business markets and consumer markets are following. Market structure and demand (derived demand) Far fewer but far larger buyers; more geographically concentrated Nature of the buying unit More decision participants; more professional purchasing effort Types of decisions and the decision process More complex; more formalized; more dependent.

Business Buyer Behavior
The Environment Marketing Stimuli Other Product Price Place Promotion Economic Technological Political Cultural Competitive

Major Types of Buying Situation
Straight rebuy – a business buying situation in which the buyer routinely reorders something without any modifications. Modified rebuy – a business buying situation in which the buyer wants to modify product specifications, prices, terms, or suppliers. New task – a business buying situation in which the buyer purchases a product or service for the first time.

Stages of the Business Buying Process
Problem recognition General need description Product specification Supplier search Proposal solicitation Supplier selection Order-routine specification Performance review

Stages in the Adoption Process
Awareness Stages in the Adoption Process Stages in the Adoption Process This CTR relates to the material on p. 157. Interest Evaluation Trial Stages in the Adoption Process The new product adoption process parallels the buyer decision process but focuses more on the interaction of consumer needs with product adoption. The new product adoption process may work best to explain how regularly used products requiring re-purchase are considered for inclusion in the consumer's consumptive behavior patterns but may also apply to some durables as well. Awareness. In this stage the consumer is aware of the new product but lacks further information about it. Interest. The consumer is motivated to seek information about the new product. Evaluation. The consumer determines whether or not to try the new product. Trial. The consumer tries the new product on a small scale to test its efficacy in meeting his or her needs. Trial can be imagined use of the product in some cases. Adoption. The consumer decides to make use of the product on a regular basis. Adoption

Adoption of Innovations
This CTR corresponds to Figure 5-7 on p. 157 and relates to the material on pp Adoption of Innovations Early Majority Late Majority Individual Differences in Innovativeness Innovators. Innovators include the first 2.5% of buyers who adopt a new product idea. Innovators help get the product exposure but are not often perceived by the majority of potential buyers as typical consumers. Innovators like risk taking and enjoy buying new products. Innovators may purchase at skimming prices. Discussion Note: You might discuss the ethical implications of skimming. Is it fair? Also, are there cost considerations associated with new product development that make skimming to recover high start up costs more ethical than it may seem? Early Adopters. Early Adopters comprise about 13.5% of the buyers who adopt new products. This group serves as opinion leaders to the rest of the market and their product usage outcomes serve as motivation to later buyers to get the product. Early Majority. Early Majority are some 34% of buyers adopting the product. They are deliberate consumers who adopt new ideas before the average person but seldom lead the market. Late Majority. Late Majority comprise another 34% of buyers adopting the product. This group is skeptical of new products and only buys after the majority of the market has tried it. Laggards. Laggards are the final 16% of adopters and are tradition-bound. They are suspicious of change and only adopt innovation that have already become something of a tradition. Percentage of Adopters Early Adopters Innovators Laggards 34% 34% 13.5% 16% 2.5% Time of Adoption Early Late

Influences on the Rate of Adoption of New Products
This CTR relates to the material on pp Teaching Tip: The adoption of innovations may be initially confusing to students but they will usually become involved in discussion when new products of importance to them are used as examples. Influences on the Rate of Adoption of New Products Communicability Can results be easily observed or described to others? Relative Advantage Is the innovation superior to existing products? Product Characteristics Influences Relative Advantage. This refers to the degree to which the innovation appears superior to existing products. The greater the perceived relative advantage, the sooner the innovation will be adopted. Compatibility. This refers to the degree to which the innovation fits the values and experiences of the potential consumers. Increased compatibility will accelerate adoption of the innovation. Complexity. This refers to the degree to which the innovation is difficult to understand or use. Greater complexity will slow the rate of adoption of the innovation. Divisibility. This refers to the degree to which the innovation can be tried on a limited basis. Greater divisibility will help increase the rate of adoption of the innovation. Communicability. This refers to the degree to which the results of using the innovation can be observed or described to others. Greater communicability will increase the rate of adoption of innovation. Product Characteristics Compatibility Does the innovation fit the values and experience of the target market? Divisibility Can the innovation be used on a trial basis? Complexity Is the innovation difficult to understand or use?

Albert Bandura’s Social Cognitive Theory (SCT): His Agentic Perspective

Intellectual Developments
The point: humans can learn by observing and modeling others, especially those that they identify with. His most famous experimental research studies at the time were his “Bobo doll” studies which showed observational learning and the impact it can have on violent behavior in children.

Bandura’s Theory Human beings have specific abilities related to learning that sets them apart from other species. Social cognitive theory states that there are three characteristics that are unique to humans: Vicarious consequences (Model and imitate others) Self–efficacy (self reflection) Performance standards and moral conduct (Ability to regulate one’s own behavior) (Albert Bandura: Biographical Sketch, n.d.) (Isom, 1998)

Bandura’s Theory (cont)
Bandura believed that a person’s level of motivation is an affective state and actions are based more on what they believe. Bandura believed that motives included: past reinforcement or more traditional behaviorism the promise of reinforcement or incentives and also vicarious reinforcement or modeling. These beliefs define what is learned. According to Bandura, in order to learn, one must pay attention be able to retain or remember have the ability to reproduce the behavior. (Albert Bandura, Francis Marion University, n.d.)

Bobo doll experiment During the 1960s and 1970s, Bandura called his theory observational learning or social learning theory.

The Bobo Doll Study Albert Bandura’s Bobo doll study in 1961 was a classic study that demonstrates the social learning theory. The study showed that after viewing adults strike and kick a Bobo doll, children would imitate the behavior in another environment. This was important, as it suggests that the violence could be imitated by viewers. Results showed 88% of the children imitated aggressive behavior following the viewing of the tape of adults acting aggressively toward the doll. 8 months later 40% of the same children reproduced the violent behavior observed in the Bobo doll experiment. (Peebles, 2003)

The Bobo Doll Study (cont.)
The children were shown three different endings to the video. The video first showed that the adults were praised for their aggressive behavior. The second group the adult was told to sit in a corner. The third group showed the adult walk out of the room. While controversial, Bandura maintained that his experiment demonstrated that children are influenced by witnessing or modeling of aggression in others. (Albert Bandura: Biographical Sketch, n.d.)

Beliefs Bandura believed that psychological research should be conducted in a laboratory to control factors that determined behavior. (Isom, 1998)

Beliefs (cont.) Albert Bandura believed that aggression reinforced by family members was the most prominent source of behavior modeling. He reports that children use the same aggressive tactics that their parents illustrate when dealing with others. In order to control aggression, Bandura stated that the problem should be diagnosed and treated during one’s childhood. Children learn to act aggressive when they model their behavior after violent acts of adults, especially family members. (Isom, 1998)

Beliefs (cont.) There are four component processes influenced by the observer’s behavior following exposure to models. These components include: attention; retention; motor reproduction; and motivation. He believes that people acquire behaviors through the observation of others, then imitate what they have observed. Several studies involving television commercials and videos containing violent scenes have supported this theory of modeling. Albert Bandura believed television was a source of behavior modeling. (Isom, 1998)

Observational Learning
Bandura’s earlier work on observational learning set the stage for his work in social cognition. Observational (or social) learning proposed two primary modes of learning: Modeling Imitation

Bandura hypothesized a four-step pattern that combined a cognitive and operant view of learning. Attention notices something in the environment Retention remembers what was noticed produces an action that is a copy of what was noticed Motor Reproduction consequence changes the probability the behavior will be emitted again Motivation

Four key processes or steps to observational learning:
Attention Symbolic representation and retention Transformation to action or production Motivation

Four core features of human agency:
Intentionality. Forethought. Self-Reactiveness. Self-Reflectiveness.

In a set of well-known experiments, called the "Bobo doll" studies, Bandura showed that children (ages 3 to 6) would change their behavior by simply watching others. He observed three different groups of children: One group of children saw the child praised for aggressive behavior

In a set of well-known experiments, called the "Bobo doll" studies, Bandura showed that children (ages 3 to 6) would change their behavior by simply watching others. He observed three different groups of children: A second group saw the child told to go sit down in a corner and was not allowed to play with the toys.

In a set of well-known experiments, called the "Bobo doll" studies, Bandura showed that children (ages 3 to 6) would change their behavior by simply watching others. He observed three different groups of children: A third group group saw a film with the child simply walking out of the room.

Bandura and his colleagues also demonstrated that viewing aggression by cartoon characters produces more aggressive behavior than viewing live or filmed aggressive behavior by adults. Additionally, they demonstrated that having children view prosocial behavior can reduce displays of aggressive behavior.

Bandura landmarks One of many landmark works of Bandura’s is his book entitled Social Foundations of Thought and Action: A Social Cognitive Theory. In this book Bandura formally broadened social learning theory into a fuller theory of human behavior (not just learning). He also presented his triadic reciprocality model.

Triadic Reciprocality Model

Triadic Reciprocality Model (cont.)
Here is a depiction of his triadic reciprocality model of social and person causes.

Triadic Reciprocality Model (cont.)
three bi-directional arrows depicts a dynamic reality Within this system, self efficacy helps determine what people decide to do (based on their capability beliefs) and self-regulation helps them to set, monitor, and control their goals and motivation. What is implicit is Bandura’s agentic perspective of human behavior.

Social Cognition Bandura believes that human beings have specific abilities and that only reciprocal determinism can explain their operation and interaction: Model and imitate Self-reflect Regulate own behavior

Motivation Bandura integrates many different theories of motivation into his SCT, but what is most prominent in his theory is the agentic perspective which involves personal goal setting, self-reflection, self-regulation, and self- development. His idea of collective agency also is important (where social groups and cultures also set goals, monitor, and attempt to develop).

Fortuity Fortuity or chance plays an important role in Bandura’s model of human behavior Bandura points out, however, that agency even plays a role in fortuity. He is fond of the quote by Pasteur: “Chance favors only the prepared mind.”

Key Concept in SCT: Self-Efficacy
Self-efficacy, as a refined construct, came relatively late in Bandura’s thinking. Bandura’s noticed a characteristic of successful people in all phases of life. It was various self-efficacy beliefs that let to their successes. “Self-efficacy is a person’s belief in their ability to produce desired results by their own actions.” Successful people usually have high self-efficacy.

Self-Efficacy Self-reflection is a second human quality and is expressed in the concept of self-efficacy. “Self-efficacy is the belief in one’s capabilities to organize and execute the sources of action required to manage prospective situations.” (Bandura, 1986)

Self-Efficacy Self-efficacy impacts: The choices we make
The effort we put forth How long we persist when we confront obstacles (especially in the face of failure) How we feel about ourselves, others, the task, etc.

Self-Efficacy Versus Other Constructs
“Self-efficacy as a judgment of personal capability is not self-esteem, which is a judgment of self-worth, nor is it locus of control, which is a belief about whether outcomes flow from behavior or from extraneous forces” (2005)

Personal efficacy beliefs
Teaching efficacy, Learning efficacy, Writing efficacy Parenting efficacy I can quit smoking. (You can start naming them) I can learn Spanish I can get over my phobias

Collective efficacy beliefs
Sports team members’ collective or team efficacy Our COE can produce good teachers Our organization can make a profit in a competitive and changing environment

Ways that self-efficacy beliefs are developed:
Enactive mastery. Social modeling or vicarious experience. Social persuasion. Physical and emotional states.

“There is much talk about the validity of theories, but surprisingly little attention is developed to their social utility…Theories are predictive and operative tools. In the final analysis, the evaluation of a scientific enterprise in the social sciences will rest heavily on its social utility.” (2005)

Attitude Formation and Change

What is an attitude? A learned predisposition to respond to an object or a class of objects in a consistently favorable or unfavorable way. Attitudes are relatively enduring. Attitudes are situation-related.

What Are Attitudes? In a consumer behavior context, they are learned predispositions to behave in a consistently favorable or unfavorable way with respect to a given object (e.g., people, places, products, services or events) Attitudes are not observable; thus attitude research is important for marketers OK, so what do we know about attitudes? (next slide)

Attitudes are Learned We are not born with attitudes
Attitudes relative to purchase behavior are formed as a result of direct experience with the product word-of-mouth exposure to mass media advertising, the internet, and direct marketing Attitudes are not synonymous with behavior Attitudes may result from behavior Where do we learn attitudes relative to purchase behavior? Are attitudes and behavior the same thing?

Attitudes Have Consistency
Attitudes are not permanent and can and do change Once attitudes develop, they are not always easy to change Often the goal of marketing is to change attitudes about a product or company Circumstances sometimes preclude consistency between attitudes and behavior Does this mean attitudes don’t change? But are they easily changed? How does that relate to marketing? Example: attitude towards American cars A fact marketers need to be aware of is that (#4) Example: Consumer may prefer Swedish cars to Korean, but may have to buy Korean cars due to price May want to drive a Beamer, but have to buy a minivan because he’s got 3 kids

Attitudes Occur Within a Situation
How attitudes affect behavior depends on the situation in which the behavior occurs Thus a specific situation may cause consumers to behave in ways that are inconsistent with their attitudes From a marketer’s perspective, it is important to consider the situation in which the behavior takes place, or one might misinterpret the relationship between attitude and behavior What on earth does that mean? For example: Jon Doe may dislike McDonald’s—because of the solid waste pollution, because it’s a multinational corporation, or because he doesn’t feel the food is healthy. But if John Doe is running late for an evening meeting and has little time to eat, he may decide to eat at McDonald’s, even though that’s inconsistent with his attitude. Has he changed his attitude? No. What does this mean for marketers? Another example: Jane Doe may buy a different shampoo each time she shops. This might reflect dissatisfaction with the brands she has used in the past. Or it may reflect that she is trying to save money and is buying the least expensive brand each time.

How do we form attitudes?
Three different paths to attitude formation: Attitudes are created by first creating beliefs. Consumer beliefs are the knowledge that a consumer has about objects, their attributes, and the benefits provided by the objects. Consumer beliefs are created by processing information--cognitive learning.

Forming Attitudes, continued
Attitudes are created directly. Behavioral learning Mere exposure Attitudes are created by first creating behaviors. Consumers respond to strong situational or environmental forces, and after engaging in the behavior, form attitudes about the experience.

Three Major Influences on Attitude Formation
Sources of Attitudes Three Major Influences on Attitude Formation Personal experience Influence of family and friends Exposure to direct marketing and mass-media How do people form their initial general attitudes towards things? How do they decide whether to buy Lee or Levi’s jeans? How do they decide whether to shop at Sears, Penney’s or Costco? Land’s End or LL Bean?

1. Personal Experience The primary basis on which attitudes towards goods and services are formed Free products, cents-off promotions, etc. Marketer’s goal is to get consumers to try a product and, hopefully, develop a positive attitude towards it So, what does this mean for marketers? Get people to try their products! (1) (2) How might marketers stimulate trial of their products? Ever happen to you? Entertainment Book (for restaurants, at least) based on this theory

2. Influence of Family & Friends
Family and friends are a major influence on our values, beliefs and attitudes We carry over into adulthood many of the attitudes we developed as children Our peer and social groups also influence our attitudes Family examples: attitudes towards food (e.g., junk food, ethnic food), restaurants (2) Examples (#3)?: the car we drive (minivan vs. BMW), tattoos, pierces, etc. Does the age of the consumer determine which group (family vs. friends) has more influence? Sure, and we’ll see this in more depth later.

3. Direct Marketing & Mass Media
Direct marketers are able to use new technologies to target smaller and smaller market segments As a result, many solicitations are highly personalized and have the capacity to create favorable attitudes towards their products Television, radio, newspapers and magazines provide marketers with unlimited opportunities to create positive attitudes towards their products (3)…and negative ones as well! Cause marketing serves this purpose

The Functions of Attitudes
Attitudes can be classified into four functions: Utilitarian Function Ego-defensive Function Value-expressive Function Knowledge Function

1. Utilitarian Function We have a favorable attitude towards a product because it has been useful in the past Marketers may stress the utilitarian feature or may suggest uses of the product that may not be obvious What does it mean? (2) Example? Charcoal that does not require lighter fluid Cell phone that can send or take pictures

2. Ego-defensive Function
Products that we purchase to protect our self-images, to replace our sense of insecurity with personal confidence What is it? (1) Examples: Cosmetics and personal care products (e.g., deodorant, acne cream, wrinkle creams, contact lenses, tooth whiteners, etc.)

3. Value-expressive Function
We often express our personal values through the brands we purchase and own Marketers often attempt to identify their brands with these values What is it? (1) Examples? Patriotic Americans try to buy goods made in the US and/or buy flags Environmentally conscious drivers might buy electric or hybrid vehicles Honda Civic vs. Hummer (Good story on 60 minutes March 2, 2002 about how nothing expresses our self-image more than an automobile, which is why so many people living in New York City or Los Angeles are driving huge SUV’s) What about wearing Birkenstocks? (2) Examples? Volvo vs. Cadillac BMWs vs. SUV’s McGraw’s “Consumers” (p. 545) gives example of African youth using western clothing to show identification with modern ways and marketers take advantage of this in ads to other countries

4. Knowledge Function Consumers generally have a strong need to know and understand the people and things they come in contact with Many product and brand positioning strategies are based on an attempt to satisfy this “need to know” What is it? Examples? Explaining the difference between their product and the competition’s product

Relation Between Attitude and Behavior
It is fair to say that attitudes at least sometimes guide behavior Thus it is important for marketers to understand the role of attitudes in purchase situations Is there always a direct link between attitude and behavior? No, but… (1)

Structural Models of Attitudes
In order to understand the link between attitude and behavior, psychologists have developed models to help understand attitude The focus has been on specifying the composition of an attitude to better explain or predict behavior. They have identified the following attitude models: The traditional/tricomponent model The multi-attribute model The theory of reasoned action (TORA)

Tricomponent Model According to this model, attitude consists of three components: Cognitive component The knowledge and perceptions that are acquired by a combination of direct experience with the attitude object and related information from various sources. Affective component The emotions or feelings associate with a particular product or brand. Conative component The likelihood or tendency that an individual will undertake a specific action or behave in a particular way with regard to the attitude object.

1. Cognitive Component The knowledge and perceptions we have about the object Based on personal experience with the object and information from various sources (e.g., opinions of others, ads, articles, etc.) This knowledge and perceptions commonly take the form of beliefs Example: I’ve done a lot of research on cars. I know, from reading Consumer Reports, etc. that the best car on the road is a Mercedes. it is well-made, very safe, highly reliable. People I know who own it are very happy with it.

2. Affective Component A consumer’s emotions or feelings about a particular product or brand Generally a reaction to the cognitive aspect of the attitude Our emotional state may amplify positive or negative experiences, which then have an effect on our attitude Based on what I know about the Mercedes, particularly the safety aspect, I have a positive reaction to/feeling about the Mercedes

3. Behavioral/Conative Component
Is concerned with the likelihood or tendency that a consumer will undertake a specific action or behave in a particular way regarding the attitude object Frequently treated as a consumer’s intention to buy Positive feelings about the product will then generally lead to an expression of intent to buy the product and then the purchase of the product

Implications for Marketing Strategy
When marketers use the traditional model to create or change attitudes, they use the various components as follows: At the cognitive level with information At the affective level with emotionally toned messages At the behavioral level with incentives (samples, coupons, rebates) What are the implications?

The Multi-Attribute Model of Attitudes
There are many variations on this model They include: The attitude toward the object model The attitude toward the behavior model The theory of reasoned action model Another model that addresses the issue of how attitude affects consumers’ behavior is…

1. Attitude toward the object model
Model is especially suitable for measuring attitudes toward a product or service category or specific brands Holds that a consumer’s attitude towards a product or brands of a product is a function of the presence (or absence), and an evaluation of, certain product-specific beliefs or attributes

Consumers generally have favorable attitudes toward brands they believe have an adequate level of attributes they evaluate as positive Consumers have negative attitudes toward brands they feel do not have an adequate level of desired attributes or have too many negative or undesired attributes In plain English, this means that…(1) (2) Examples? Computer shopping—Apple emphasizes simplicity of use in current/recent ads, relative to Windows systems In our Mercedes shopping, we wanted a car that had front and side airbags SUV owners talk about safety, riding higher, being able to drive in bad weather, etc.

2. Attitude toward behavior model
A person’s attitude toward behaving or acting with respect to an object, rather than toward the object itself Not uncommon for consumers to have a positive attitude toward an object but a negative attitude toward purchasing it What does this mean? (1) In other words, can a consumer like a product but not something about buying it? Examples? Cars— may have positive attitude towards expensive German cars, but choose not to purchase one for a number of reasons: many older Americans still resent Germany; desire not to put too much money into a car, etc. SUV’s are becoming socially unacceptable (recall “axle of evil”)

3. The Theory of Reasoned Action (TORA)
According to this model, behavior is determined by a person’s intention to behave To understand intention, we also need to measure the subjective norms that influence an individual’s intention to act A subjective norm can be measured directly by assessing a consumer’s feelings as to what relevant others (family, friends, co-workers) would think of the action contemplated What is it? (1) (2) For example, if a person was going to purchase a new Porsche, he or she would stop to think about what his friends, family, girlfriend, etc. would think about the decision. Is it really selfish and impractical? See figure 8-3 on p. 207 of Kanuk

Attitude-toward-the-Ad Model
Very specific to understanding the impact of advertising on consumer attitudes about a particular product or brand. Exposure to advertising affects attitude-toward-the ad and attitude-toward-the brand.

Attitude-toward-the-Ad Model
Very specific to understanding the impact of advertising on consumer attitudes about a particular product or brand. Exposure to advertising directly affects beliefs about the ad and brand, and feelings about the ad. Exposure to advertising indirectly affects attitude toward the brand and attitude toward the ad.

Exposure to ad Judgments about the ad (cognition) Feelings from the ad (affect) Beliefs about the brand Attitude toward the ad Attitude toward the brand

Attitude Change Attitude change is an issue for every marketer
New entrants into the market need to change the attitude of consumers that support purchases from market leaders Market leaders need to strengthen the positive attitudes of their customers to retain their market share OK, now let’s turn to the process of…

Attitude change strategies
Competitors can try to change the attitudes of the market leaders’ customers in several ways: Comparative advertising Emphasizing brand attributes Adding new attributes Providing knowledge of alternatives Changing the relative value of attributes How do marketers go about trying to change consumers’ attitudes? (1) These are somewhat different from what’s in your book

1. Comparative Advertising
Identifying a major competitor and explaining why your product is superior in one or more ways What is it? (1) Examples? Lots of car ads using Honda/Toyota for comparison (e.g., Hyundai using length of warranty) Current (Dec. 2002) battle going on between Campbell’s Soup and Progresso Mac vs. Windows again (2002) Problem? Have to be careful about misrepresenting the competitor’s product (e.g. McD’s vs. BK)

2. Emphasizing Brand Attributes
Identifies and highlights features of the product that consumers may not be familiar with or that may be new or innovative (1) Examples? Recent (2002) ads for a cell phone that plays games and take pictures Minivans with televisions Problem? Recall Campbell’s Soup case; promoted good for heart cuz low in fat, but high in sodium Sometimes claimed innovations or changes may be minimal and thus misleading

3. Adding attributes Can involve
Stressing an attribute that has been ignored; or Adding an attribute that represents an improvement or technological innovation Examples? Yogurt is higher in potassium than bananas; can be used to improve attitude of health conscious consumers Cell phones that are combined with PDA’s or digital cameras

4. Providing knowledge of alternatives or consequences
Providing consumers with evidence, facts or figures enable them to make informed choices between competing brands This is more likely to be used in print ads, since television and radio are not good vehicles for providing a great deal of information

5. Changing the relative value of attributes
Often a market for a particular type of product is divided so that different market segments are offered different brands, each with different features or benefits When this occurs, marketers have an opportunity to persuade consumers to “cross over” to their brand (1) E.g., with headache remedies, a brand like Tylenol stresses gentleness on the stomach, no aspirin, etc., while a brand like Aleve stresses potency and anti-inflammatory qualities (2) E.g., sugarless gum and regular gum have different features that appeal to different market segments. By improving flavor, a marketer of sugarless gum has an opportunity to change the attitudes of regular gum chewers

How Can Marketers Change Attitudes?
Alter components of multiattribute model Increase belief ratings for the brand Increase the importance of a key attribute Decrease the importance of a weak attribute Add an entirely new attribute Decrease belief ratings for competitive brands

Changing attitudes…. Change beliefs and attitudes through persuasion
Elaboration likelihood model of persuasion (ELM)

Motivation to Elaborate Ability to Elaborate Amount of Elaboration High Low Central Route to Persuasion Peripheral Route to Persuasion Message Arguments Determine persuasion Peripheral Cues Determine persuasion

High-involvement processing Cognitive responses Belief and attitude change Behavior change Central route Communication (source,message, channel) Attention and comprehension Peripheral route Low-involvement processing Belief change Behavior change Attitude change

Family How does the family affect consumer behavior? (consumer socialization) Family Life Cycle Who is the Decision Maker (Husband dominant, wife dominant, and joint decision making)

Differences between families and other groups
Family Formation by marriage or birth More permanent relationship More interpersonal relations-oriented More intrinsic value seeking Group-oriented (co-operative) Other groups Formation by job or task More contractual relationship More goal-oriented More rational-oriented ties Self-oriented (competitive)

Family functions Socialization (imparting to children the basic values and modes of behaviour consistent with the culture) Consumer socialization (the process by which children acquire the skills, knowledge and attitudes necessary to function as consumers) Intergenerational brand transfer – specific brand preferences for products like peanut butter, coffee and ketchup are frequently “passed on” from one generation to another Economic well-being (e.g. life insurance) Emotional support (e.g. Mother’s day cards) Suitable family lifestyles (e.g. the allocation of time)

Family life cycle Young single Newly Married Full Nest Empty Nest
Solitary Survivor

Traditional Family Life Cycle
Stage I: Bachelorhood – Young single adult living apart from parents Stage II: Honeymooners – Young married couple Stage III: Parenthood – Married couple with at least one child living at home Stage IV: Postparenthood – An older married couple with no children living at home Stage V: Dissolution – One surviving spouse

Non-traditional Family Life Cycle
Family households Childless couples Couples who marry later in life Single parents Extended family Non-family households Unmarried couples Divorced persons Single persons Widowed persons

Roles in the family decision-making process (Instrumental, expressive and decision roles)
Influencers Gatekeepers Deciders Buyers Preparers Users Maintainers Disposers

Roles That Household Members Play
The Roles of Spouses Husband-Dominant Decision Wife-Dominant Decision Autonomic Decision Syncratic Decision

Examining family purchasing decisions
Four perspectives Role structure Instrumental and expressive roles Power structure Patriarchal, matriarchal and equalitarian family Child-centered family Stage in the decision-making process In some purchases, the wives are involved more in the initiation, information-seeking and purchasing stages Family-specific characteristics Culture Social class Stage in life cycle

Marketing Implications
Development of ads and personal selling messages Wives are often the purchasers of their husband’s clothing Ads for products in which are children are significantly involved in the purchase decision Depending on the target market, portraying women as decorative or equal partner or “successful and dominant” is appropriate Development of products Working women place a premium on youthful appearance and on the “maintenance of self” Distinction between men’s and women’s work in the home has blurred, forcing many appliances to take on a unisex image Smaller cars are the big sellers, with emphasis on styling and hedonic options (Porsche estimated that in a recent year, 50% of their cars were bought by singles) Pricing implications Price for some products may become less important than convenience, availability, service and time savings Channel implications Longer store hours and weekend shopping Establish and promote children’s sections ( as well as supervised play areas) Dual roles, role-switching (cross-sex marketing) and role-blending

More examples Age-friendly shopping environment with easier-to-read labels, well-lighted parking lots, comfortable seating throughout the store, … 41% of the primary decision makers for interior design are women. Glidden introduced Dulux paints with more colourful and stylish packaging to attract this market BMW directly targeted professional women by running ads in Martha Stewart’s Living, along with a mail-in card for a test drive and free video Cause marketing, which focuses on critical women’s issues (such as breast cancer and AIDS) is a particularly effective way to reach women Hallmark has developed greeting cards that deal with a variety of step- relationships (e.g. “Happy birthday step-father” In England, Shell Oil sponsored women’s workshops to teach women how to perform routine maintenance on their cars Because of dual-career families, the need for child care services has been rapidly on the increase

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