1. Cognitive Approaches to Persuasion
Theories of comparative judgment
Adaptation level theory
Social judgment theory
Perspective theory
Influencing consumers’ reference points
Attribution theories
Self-perception theory
Attribution theory 1 & 2, Kelley’s covariation principles and causal schemata

7. Adaptation Level Theory
1. All objects can be arranged in some meaningful order.
2. All Dimension have a subjective neutral point called the adaptation level.
3. Adaptation level is the weighted geometric average of all stimuli considered at the time of judgment.

8. Acceptance Neutral Rejection
Attitude change due to persuasive communication
High
Low
Acceptance Neutral Rejection
(non-commitment)

11. Product Ranking
Product Ranking
Advertising Claim Extremity

12. Perspective Theory J - L U - L R = f R = Rating on a scale
J = The “true” underlying judgment
U = Interpretation of the upper end point
L = Interpretation of the lower end point

16. Pricing Strategy Penetration pricing Price signaling
Price skimming or creaming
Penetration pricing
Price signaling
Experience curve pricing
Customary pricing

17. Price Promotion
Advantages: 1. Price promotion costs are variable costs (i.e., pay-as-you-go costs) which are easier to manage than fixed costs.
2. Consumers are more sensitive to changes in list prices than to changes in price deals.
3. Price deals induce consumer trial of new products and reduce the retailer’s risk in stocking new brands.
4. Price deals simplify consumer decision making and make shopping for mundane products more fun.
Disadvantages: 1. Decreasing brand loyalty
2. Increasing price sensitivity
3. Short-term focus
4. Leakage across segments

18. Price promotion and brand switching
Probability of switching
Margarine Flour
Coupons Cents-off No Deal
Deals Control
Coupons Cents-off No Deal
Deals Control

19. Price promotion and decreasing brand loyalty
Probability of repeat purchase given deal retraction
Margarine Flour
Coupons Cents-off No Deal
Deals Control
Coupons Cents-off No Deal
Deals Control

27. Attributional Approach
Wood and Eagly (1981) Why does a communicator advocate a particular position? Knowledge Bias - the communicator may not know any better
Reporting Bias - the communicator may not report what he or she really believes
Expectancy Expectancy
Confirmed Disconfirmed Control
Attribution of message to
communicator’s background
Attribution of message to factual evidence
Communicator bias
Message comprehension
Attitude change