1. Consumer Attitudes

2. Attitudes –Expressions of inner feelings that reflect whether a person is favorably or unfavorably predisposed to some object; –in marketing, “object” can be a brand, a brand name, a service, a service provider, a retail store, a company, an advertisement, in essence, any marketing stimuli. –Opinions What is an attitude?

3. Attitudes  attitudes are acquired, we are not born with them  attitudes can be positive or negative  attitudes may be complex and contradictory  attitudes are functional for an individual's lifestyle  attitudes have different intensities  attitudes fit our central values,  attitudes are unique to each individual  attitudes can be modified and influenced by persuasion  attitudes are assumed to be linked to behaviour (e.g purchasing)

4. Why, From a Marketer’s point of view, is it important to know about Attitudes? If a consumer is favorably disposed towards your product or service then you want to keep them so disposed If they are unfavorably disposed then you want to change their attitude.

5. Therefore we need to know How Consumers Change Their Attitudes? (Attitude Change and Persuasion) Why Consumers Form Attitudes? (The Functions of Attitudes) How Consumers Form Attitudes? (Attitude Formation) How to Measure Consumers Attitudes (The Functions of Attitudes)

6. Development of Attitudes –personality of the individual –family –peers –experience –education –culture –subculture, nationality Attitudes are learned predispositions; therefore, their development is influenced by

7. Functions of Attitudes  Utilitarian: Do the products provide some benefit or reward? Any attitude adopted in a person’s own self- interest

8.  Value-expressive: Does the product say something about who I am or would like to be? Is it self- expressive.

9.  Ego-defensive: Does the product protect my self-esteem Does it help overcome any self doubts Edna's plight: Bad breath. A Listerine ad from the 1920s. “If it’s bad you won’t be welcome… Play safe….use listerine”

10.  Knowledge function: does the product help me to organize the information – does the product meet the needs for order and structure Rooibos ad provides reassurance that product is organic and caffeine free

11. Which is more likely to be affective in forming a positive attitude toward a particular brand of coffee? Copy that said the coffee was flavourful Copy that said the person was discriminating What type of function do each of the above appeal to?

12. The ABCs of attitudes:  The Affective Component (feelings) I feel good about myself when I drive a BMW  The Behavioral Component (action toward object) I will buy a BMW next time  The Cognitive Component (beliefs) I think BMWs are quality cars Three Components of Attitudes

13. Attitudes and the High- Involvement Decision Process Need arousal Information search Evaluation of Alternatives –Beliefs –Feelings –Intention to Act Purchase Post-Purchase behaviour Hierarchy of Effects

14. Hierarchy of Effects: The Three Components of Attitude Gets its name from advertising –The effects which advertisers seek to generate from mass advertising appeals - reinforce positive beliefs/ lessen negative ones, create positive feelings, stimulate intention to purchase –Beliefs - cognitive component –Feelings - affective component –Intention - behavioural component

15. Fishbein’s Multi-attribute Theory  Fishbein’s model argues that consumers’ attitudes towards a brand derive from their beliefs about the attributes of the brand and their evaluations of those attributes  Three factors influence attitude formation: 1.salient attributes for an object/product 2.extent to which consumer believes product contains these salient attributes 3.Importance of the attribute to the consumer

16. Fishbein’s Multiattribute Theory  Step One: List of Attributes  Step Two: Obtain the relative importance of them (weights). The more important the higher the weight  Step Three: Obtain the evaluation of each brand with respect to each attribute.  (6=Excellent, 5=Very Good, 4=Good, 3=Bad, 2=Very Bad, 1=Poor)  Step Four: Obtain the mathematical solution, applying Fishbein’s Formula.

17. Fishbein’s Multi-attribute Theory A ijk =  (B ijk x I ik ) : where –A = Attitude toward brand/product/etc.; –i = attribute –j = brand –k = consumer –I = Importance weighting –B = Extent to which the brand is believed to possess the attribute

18. Example Application of Fishbein’s Multi-attribute Theory  In Crowfoot, there are 3 banks: TD, CIBC, Royal.  We would like to know the overall or general attitude clients have to each  Step One: List of Attributes: quickness in service, office hours, locality, parking facilities, etc  Step Two: Obtain the relative importance of them (weights). Service 1, Parking 2 Locality 3, Hours 4  Step Three: Obtain the evaluation of each bank with respect to each attribute. (6= Excellent, 5=Very Good, 4=Good, 3=Bad, 2=Very Bad, 1=Poor)  Step Four: Obtain the mathematical solution, applying Fishbein’s Model.

19. Example Application of Fishbein’s Multi-attribute Theory Importance Royal TD CIBC Service 1 4 3 1 Hours 4 5 3 4 Locality 3 4 3 3 Parking 2 2 2 5 ___ ___ ___ Total 40 28 36 Which Bank does the customer have the best attitude toward? Which the worst attitude? What would you do if you were responsible for TD?

20. Implications of Attitude Research for Marketing Strategy  Product positioning and repositioning  Shows which attribute has a competitive advantage and which a disadvantage  Advertising-focus on certain attributes/benefits  Marketing research  Segmentation  Distribution: select outlets for which consumers have favorable attitudes

21.  Measure of Attitude not equal to Behaviour  Does not address situational factors e.g.  Not all attitudes are equal - some strongly held others weakly (conviction)  Does not consider social factors e.g. influence of friends and family ‘my family think I should buy X’  Assumes that we have been able to specify adequately all the relevant attributes (e.g. interest rates) Problems with Fishbein’s Model

22. Fishbein’s Theory of Reasoned Action  A refinement of his multi-attribute model  Now considers conviction with which attitude held - more of a behavioral intention model  Introduces ideas of importance of opinions of significant others (subjective norms) and a consumer’s motivation to comply with the opinions of these significant others.

23. Attitude-Behavior Consistency  Consumer Characteristics  Resources, experience, degree of conviction with which attitude is held  Situational Characteristics  Intervening time, unforeseen events, social influences, message repetition  Measurement Characteristics –timing of measurement, reliability of measurement

24. Attitude-Behavior Consistency  A positive attitude toward a product does not necessarily mean that the consumer will buy  Attitude-behavior consistency, the extent to which attitudes lead to purchase, is determined by a variety of consumer, situational, and measurement factors

25. Consumers can also have attitudes towards the act of buying

26. Attitudes can also apply to ads? Most people hate pop-up ads How do the ads influence attitudes towards the brand?

27. Attitude-Toward-the-Ad Model A model that proposes that a consumer forms various feelings (affects) and judgments (cognitions) as the result of exposure to an advertisement, which, in turn, affect the consumer’s attitude toward the ad and attitude toward the brand.

29. Measuring Attitudes  Ideally one would measure –consumers’ beliefs towards a product class and a brand –consumers’ feelings towards the product class and owning or using the brand –consumers’ intentions towards purchasing the brand  In practice most measures focus on measuring beliefs and feelings

30. ATTITUDE MEASUREMENT  Likert scale  Semantic differential scale  Rank-order scales

31. Modern Store Low prices Unfriendly staff Narrow product range Sophisticated customers Old- fashioned store High prices Friendly staff Wide product range Unsophisticated customers Semantic Differential Scale For each statement tick ( X ) the box that best describes your feelings about K-Mart.

32. Likert scale Strongly agree disagreeNeither agree nor disagree agreeStrongly agree Cost is the most important consideration when buying a new car 12345 AGREEMENT IMPORTANCE FREQUENCY QUALITY LIKELIHOOD

33. Rank the following soft-drinks from 1 (best) to 5 (worst) according to your taste preference: Coca-Cola _____ 7-Up _____ Dr. Pepper _____ Pepsi-Cola _____ Mountain Dew _____ Rank-Order Scales –Top and bottom rank choices are ‘easy’ –Middle ranks are usually most ‘difficult’

34. General Strategy e.g. general attitude towards buying a car 1.elicit important attributes. E.g. reliability, security, economy, cost, style, acceleration. 2.quantify the beliefs and feelings about these attributes by ranking the attributes according to some scale (e.g.. Likert) 3.Compare brands on various attributes

35. Attitudes and Marketing Strategy  Market research to track changes in attitude over time and for brand comparison  In new product development - focus on preferred attributes  In segmentation - focus on those attributes which particular segments favour  In helping tailor promotional strategies and in measuring the effectiveness of promotions

36. Attitude Change

37.  Deep seated attitudes are internalised and become part of the person's value system  Attitudes are difficult to change because they are so important to the individual – e.g. New Coke The Marketer’s Challenge

38. What is this ad trying to do?

39. Branding America

40. Persuasion - the active attempt to change attitudes Marketing messages are designed to persuade consumers to change brands The effort to persuade will influence how to market/advertise  Who will be depicted using the product in the ad  How the message should be constructed  What media to use  Where to advertise

41. Strategies of Attitude Change  Changing the Basic Motivational Function.  Associating the Product With an Admired Group or Event.  Resolving Two Conflicting Attitudes.  Altering Components of the Multi-attribute Mode.  Changing Beliefs About Competitors’ Brands.

42. Interactive Communications

43. Source Message Medium Receiver Feedback Encoding Transmission Decoding THE ELEMENTS OF COMMUNICATION

44. THE SOURCE  Who is delivering the message can have a big impact on whether it will be accepted. source credibility  a credible source can be particularly persuasive Expertise Trustworthiness Objectivity Attractiveness

45. Source Credibility Credibility can be enhanced if the source’s qualifications are perceived as relevant to the product being endorsed. If they are seen as experts.

46.  Awareness Due to their fame and high profile celebrity endorsers enable messages to stand out and break through the media clutter.  hold the viewer's attention a consumer is more likely to keep the television on the channel showing a commercial with Wayne Gretzky than a commercial with an unknown actor.  provide testimony for a product or service, especially effective when the product has contributed to their celebrity eg. consumers may be more likely to try a motor oil endorsed by Al Unser, Jr. This relationship can increase a consumer's belief and trust in the product and its benefits.  Instant credibility when consumers see a credible celebrity endorsing a product, consumers think that the product must be at least ‘OK’ Celebrities as Credible Sources

47.  PR coverage: celebrities are topical and create high PR coverage. Celebrity-company marriages are covered by most media  To create positive attitudes towards products and generate sales EG for sports figures, people know they are not going to be as good as these athletes, but having their equipment makes them feel better. Approximately 20% of all television commercials feature a famous person from the world of sport, television, movies or musical entertainment

48.  The goal of this campaign has been to reverse the 30- year decline in milk consumption by increasing consumers’ awareness of the nutritional value of milk and changing their attitudes toward the product.  Terrell Davis is an appropriate endorser for a product such as milk.  Davis drew attention to the ad since he is a highly recognizable athlete and he fits well with the message that milk can help build muscle.

49. Drawbacks of using Celebrities $ Pepsi Shaquille O'Neal$25 million Nike Tiger Woods $40 million ReebokVenus Williams $40 million Reebok Allen Iverson $100 million (lifetime) ShickAndre Agassi$19 million NikeMichael Jordan$40 million

50. Drawbacks of using Celebrities

52. Consumer cynicism People know celebrities get paid a lot of money for endorsements and this knowledge leads them to cynicism about celebrity endorsements.

53. There has to be a link between product and celebrity Sainsbury’s used Catherine Zeta Jones for its recipe advertisements when she was caught shopping in Tesco (UK grocery stores) Cybill Shepherd was endorsing beef industry when said she did not eat meat.

54. Guidelines For selecting a spokesperson (FRED) Familiarity: The target market must recognize the celebrity, and perceive the person as friendly, likeable, and trustworthy. The more familiar an endorser, the more likely consumers are to buy the endorsed product Relevance For credibility there should be some link between the celebrity and the product, and between the celebrity and the audience. It is important for audience to identify with the celebrity. E.g. older consumers feel a tie to Arnold Palmer. If consumers can associate with the endorser, they will feel more comfortable accepting and buying the product or service. Esteem: Consumers must respect celebrity for the commercial credibility. Differentiation: The public must see the endorser as different from all the rest. Michael Jordan is an example of a celebrity that stands apart from the normal athlete, one of the contributing factors to his success as an endorser.

55. Source Attractiveness Beautiful people are used in advertising because  consumer's pay more attention to ads containing attractive models  degree of attractiveness influences consumer's product evaluation - the more attractive the higher we evaluate the product.

56. Trustworthiness

57.  stress a unique attribute or benefit of the product - USP  showing convenience of use  showing new product or improved features  people incidental to the message  indirect comparison with other products  demonstration of the product in use  demonstration of tangible results  no principal character - i.e. more time is devoted to the product The Message What makes a marketing message persuasive?

58. Words Versus Pictures Words Versus Pictures Argument Message as Metaphor Message as Metaphor Vividness Type of Appeal Type of Appeal Repetition Factors Affecting Persuasiveness Factors Affecting Persuasiveness

59. Words or Pictures Which conveys the message best? Visual  affects aesthetic evaluations  stress on creativity  don't convey factual information well Verbal  Take more time for consumer to process  Better suited to high involvement medium - eg print  harder to remember therefore more repetition needed verbal elements are more effective when reinforced by an accompanying picture

60. Bloomingdales 1898 Corn Flakes, 1933Cosmopolitan, 2003Puerto Rican Rum, 1974 Throughout the 20th century pictures have gradually replaced words. Early advertising tried to persuade the reader with a series of facts about the product contained in the ad.

61. Small Print: "MAD AS A WET HEN? That's natural when little annoyances ruffle you. But the psychological fact is: pleasure helps your disposition. That's why everyday pleasures, like smoking for instance, are important. If you're a smoker, you're wise to choose the cigarette that gives the most pleasure. And that's a Camel!" "Gene Nelson, screen and stage star, says: 'I've tried 'em all. It's Camels for me!' " 1950s

62. VIVIDNESS  precise descriptions or vivid graphics  command attention  remembered more than vague messages Companies that focused attention on the culture kept employee turnover to just 6.2% compared to 20% for industry at large. Vs Companies that focused attention on the culture kept employee turnover lower than for the industry at large. according to industry sources three out of every four watch breakdowns are due to water getting into the case Vs according to industry sources, many watch breakdowns are due to water getting into the case

63. Repetition  is the mother of teachers  increases familiarity and brand awareness  The idea behind the use of repetition in advertising is that we, like Pavlov's dog, will become conditioned to behave in a certain manner; namely, we will respond by buying the product  Not only are ads repeated, but repetition is also used within the ads or commercials themselves  too much repetition leads to habituation -- consumer ignores stimulus because of boredom.

64. boredom can be eliminated by slightly varying the content of ads around a common theme

65. Constructing the Argument One-Versus two-sided arguments One-sided arguments  persuasive messages that support one side of an issue or one product - stress on attributes and benefits  cannot address questions  usually more persuasive with audiences who have little or no comprehension of an issue..

66. two-sided arguments  provide information about both positive and negative attributes of a product or service  Negative attributes trivialised or refuted  Help to differentiate the product  works well when receivers are not already loyal to the product

67. Why would a marketer want to draw attention to the negative aspects of their product?  audience may pay more attention to it. By presenting the opposing side, the advertiser causes its audience to question the product or service. By questioning it, the individuals are made to think about the attributes. The more these attributes are considered...the longer the product or service is in the mind of the consumer.  When topics are made more interesting or involving messages are processed more thoroughly. Consumers think more highly of products, brands, and services which make them think. The process is viewed as novel and pleasant.  more credible than one-sided ads because they admit that the advertised brands have shortcomings.

68.  those exposed to the two-sided messages were more likely to have a more favourable attitude after the exposure. That is: the negative aspects of the message can yield a positive, desired attitude after exposure  provides a built-in counter claim, or opposing message. By providing only mild negative information to the consumer, the consumer is prevented from concocting potentially worse negative images on their own. Thus, it leads the consumer to perceive that the positive attributes presented are the stronger attributes.

69.  type of two-sided message  includes positive attributes about a product or service and some negative aspects of its competitor's product product A is better than product B.” Comparative advertisement

70. Can be direct or indirect.

71.  the negative inclusions may lead a consumer to believe that there are more positive attributes to associated with the product or service when it admits that it has competitors.  often works in priced- based advertising in print media, where competitors' prices are compared side-by-side. This ad positions Savin against Xerox. The X is obviously in reference to Xerox. Canon and Mita are also mentioned in the ad

72. Pitfalls of Comparative Advertising  Confusing  Every mention of a competitor's name or product in an advertisement increases the probability that the audience will think the ad is for that competitor.  audience may also doubt the credibility of the biased ad  Free exposure for the compared brand

73. Pitfalls of Comparative Advertising false or misleading statements could lead to litigation. Eg. 1992 Ad for Maytag dishwasher said that "Nobody, But Nobody Cleans Better than Maytag or Holds More Dishes!" supported by results of a proprietary test. Whirlpool argued that its dishwasher cleaned better based on independent tests.

74. Comparative Advertising The FTC considers comparative advertising deceptive unless: 1.The comparisons are based on fact. 2.The differences advertised are statistically significant. 3.The comparisons involve meaningful issues. 4.The comparisons are to meaningful competitors.

75. Types of Message Appeals Emotional Versus Rational Humourous FearSex

76. EMOTIONAL APPEALS  emotional versus rational appeals to head or heart  depends on the product and the type of relationship the consumers have with it. - ads for cars focus on emotion  recall for ad contents tends to be better for thinking ads than for feeling ads  Products are sold today through the use of emotional appeals and identifications.

77. images and text in this ad are designed to have the maximum emotional effect for one purpose: to persuade the reader to make an act of charity

78. Heart or Head?

79. Humorous appeals

80. Effective humour surprises the audience, and at the same time, speaks some sort of truth. The goal in using humour in advertising is to make the audience laugh, and, more importantly, have them walk away thinking "this company understands me"

81.  Effective at catching people's attention.  Recognition scores high for humorous ads  Inhibit consumer from counter arguing which increases the likelihood of message acceptance  more effective when brand is clearly identified – creates a positive attitude  subtle humour usually best  Humor enhances liking. Advantages of Humorous Appeals

82. Brands will be remembered more if they are intimately entwined in the humour

83.  Humor is more appropriate for low-involvement products and feeling- oriented products than for high-involvement products.  1996 advertisers spent $10 billion on humorous ads out of the total $100 billion spent on all ads  72 percent of the 100 Best Commercials of All Time use humor to reach the target audience

84.  funny material can dominate the message and thus the product recognition is lost  Culturally relative  Reduces Comprehension  a punch line that doesn't pay off – can backfire Pitfalls of Humorous Appeals

85. Fear Factor  Highlight the risk or negative consequences of not using the advertised brand or of engaging in unsafe behaviour  Fear of social physical harm or social disapproval  Fear stimulates message involvement  common factor for public-policy issues e.g. stop smoking  Fear appeals are usually most effective when only a moderate amount of fear is induced increasing levels of fear do no result in increased change  Pitfall - distract customer from focal product (ie. dwell on the fearful event rather than the proposed solution)

86. ATTITUDES Ads with fear appeals are also effective in capturing people’s attention. However, self-defense mechanisms (distraction and counter arguing) may decrease its evaluative effects

87. Which ad is more effective?

88. a solution to the problem should be presented. otherwise consumers will tune out the ad since they can do nothing it solve the problem

89. Sex Appeal

90. Resonance  a literary device that employs a play on words (a double meaning) to communicate a product benefit.  puns are used as “attention- grabbers