Attitudes Mktg 450 Fall 2005

2 Subliminal?

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

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

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

Fall 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?

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

Fall 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

Fall 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

Fall Aromas for Young Males

Fall Attitude toward Everything?

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

Fall 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

Fall 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.

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

Fall 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.

Fall 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.

Fall 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.

Fall 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.

Fall 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.

Fall 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.

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

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

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

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

Beliefs B 1 – What is the likelihood that Crest will prevent cavities? Very Very Likely Unlikely B 2 – What is the likelihood that Crest will whiten your teeth? Very Very Likely Unlikely

Beliefs B 1 – What is the likelihood that Crest will prevent cavities? Very Very Likely Unlikely B 2 – What is the likelihood that Crest will whiten your teeth? Very Very Likely Unlikely

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

Evaluation of Beliefs a 1 – A toothpaste that prevents cavities? Very Very Good Bad a 2 – A toothpaste that whitens your teeth? Very Very Good Bad

Evaluation of Beliefs a 1 – A toothpaste that prevents cavities? Very Very Good Bad a 2 – A toothpaste that whitens your teeth? Very Very Good Bad

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

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

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

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

Attitudes B1B1 B2B2 a1a1 a2a2 Ao +3

Attitudes B1B1 B2B2 a1a1 a2a2 Ao B 1 *a 1 B 2 *a 2

Attitudes B1B1 B2B2 a1a1 a2a2 Ao

Attitudes B1B1 B2B2 a1a1 a2a2 Ao

Attitudes B1B1 B2B2 a1a1 a2a2 Ao

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

Extra Whitening Crest or Dual Whitening Crest

Fall Colgate Can Not Fall Behind

Discover Undesirable Features B 1 – What is the likelihood that Coke is caffeinated? Very Very Likely Unlikely a 1 – A caffeinated soft drink? Very Very Good Bad

Caffeine-free Coke

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

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

Fall Listerene Better Tasting

Discover Competitor’s Features are not Desirable B 1 – What is the likelihood that Starbucks is bitter? Very Very Likely Unlikely a 1 – A bitter coffee? Very Very Good Bad

Fall Cable versus Satellite CableSatellite

Fall 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

Fall Satellite TV Ad

Fall Cable TV Ad

Discover Competitive Parity B 1 – What is the likelihood that Lexus is a reliable car? Very Very Likely Unlikely B 1 – What is the likelihood that BMW is a reliable car? Very Very Likely Unlikely a 1 – A reliable car is? Very Very Good Bad

Fall

Fall Match Benefits

Fall Colgate has a Different Idea

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!

Fall Colgate Outdoes Crest

Fall Colgate Total

Fall Healthy Teeth?

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?

Fall Anyone Care?

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.

Fall Selling Compromises Features

Fall Importance-Performance Analysis

Fall 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

Fall 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

Fall Marketing Warfare

Fall 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.

Fall How Markets Divide Themselves Leader - > 30% share Challenger % share Flanker % share Nichers - 1% or less

Fall 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%

Fall 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%

Fall Coca Cola

Fall Leader Strategy

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

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

Fall Package Delivery Market

Fall UPS Strategy

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

Fall 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.

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

Fall 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

Fall Proposed Storefront Image

Fall Better Strategy

Fall FedEx-Kinkos

Challenger Strategy

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

Flanker Strategy

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

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

Nicher Strategy

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

Fall How Markets Divide Themselves Leader - > 30% share Challenger % share Flanker % share Nichers - 1% or less

Fall Marketing Warfare – Video Games

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

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

Fall Battle Field

Fall Humble Beginnings 13,614 Versus 7,727 Outlets

Fall st Wendy’s ( Columbus Ohio 1969 ) 6,000 outlets

Fall st Jack in the Box ( San Diego ) 2,000 Outlets 17 states

Fall

Fall Constant Combat

Fall A Battle of Words as Well as Food

Fall Fast Food Attitudes FAST FOOD CHAIN MENU VARIETY POPULARI TY w/ Child FOOD QUALITY PRICEOVERALL PREFER BURGER KING JACK IN THE BOX McDONALDS' WENDY’S RELATIVE IMPORTANCE WEIGHTS

Fall Overall Attitudes 3.6 = 2.9* * * *.25

Fall 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

Fall McDonalds-1

Fall Burger King -1

Fall Burger King -2

Fall Wendys

Fall Jack in the Box - 1

Fall 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 ?????

Fall McDonalds ( adults ) - 2

Fall McDonalds (dryer) - 3

Fall Wendy’s 2004

Fall McDonalds (Fries)

Fall Burger King

Fall Burger King - Ugoff

Fall Jack in the Box ( language ) - 2

Fall JBX

Fall 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

Fall Video Game Wars

Fall 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

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

Fall Leader – Video Game Units

Fall Leader – Video Game Revenue

Fall 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

Fall Challenger – Miller Lite

Fall Flanker – Wendy’s

Fall Nicher – Jones Soda

Fall To Persuasion

Fall Nicher - Taco Bell ( Think Outside the Bun )

Fall Dairy Queen ( Something Different )

Fall Project Due Date – Tuesday, December 6th For Tuesday, article on humor in the packet, pp in the text