1. Copyright © 2002 by The McGraw-Hill Companies, Inc. All rights reserved.

2. 13 Chapter Attitude Models and Consumer Decision-Making

3. Copyright © 2002 by The McGraw-Hill Companies, Inc. All rights reserved. Learning Objectives After completing this chapter, you should be able to: Explain the difference between consumer cognitions, affect, and behavior and describe their role in decision making. Discuss theories that are applied to attitudes and attitude formation, and describe the role of attitudes in consumer behavior. Talk about competing hierarchy of effects models, as they relate to attitude formation. Distinguish between awareness, knowledge, liking, preference, behavioral intentions, and behavior in consumer decision making.

4. Copyright © 2002 by The McGraw-Hill Companies, Inc. All rights reserved. Learning Objectives (continued) Describe the influence involvement in consumer choice. Explain the concept of quick choices and the difference between the central and the peripheral routes to persuasion. Outline the strengths and weaknesses of the Fishbein models of attitudes. Describe other choice models, including expected utility theory, satisficing decisions, consumer heuristics, and prospect theory.

5. Copyright © 2002 by The McGraw-Hill Companies, Inc. All rights reserved. Overview Consumers make many choices every day. Some brand choices consumers make are relatively simple; in other situations, consumers make brand choices that require extensive information search and difficult choices. The chapter discusses two broad approaches for thinking about the choices consumers make—consumer attitudes and attitude models—and understanding how individual consumers make decisions. Attitudes are key internal factors that shape individual consumer choices.

6. Copyright © 2002 by The McGraw-Hill Companies, Inc. All rights reserved. Consumer Attitudes and Attitude Models Attitude a way to summarize consumers thoughts, feelings, and actions. Attitude models provide a description of how consumer information processing, including cognitions and emotions, influence consumer choice processes.

7. Copyright © 2002 by The McGraw-Hill Companies, Inc. All rights reserved. Attitudes Attitudes reflect what consumers think and feel and can be used to explain what consumers intend to do. Attitude models help to describe how consumers make choices. Attitude is a consumer’s overall, enduring evaluation of a concept or object, such as a person, a brand, a service. Attitudes are a product of information acquisition—learned beliefs, feelings and reaction tendencies. Beliefs are thoughts linking an object to some feature or characteristic.

8. Copyright © 2002 by The McGraw-Hill Companies, Inc. All rights reserved. Why are Attitudes Formed? The functional theory of attitudes explains the role of attitudes in guiding and shaping social behavior and describes where attitudes come from by understanding the human motivation for forming attitudes. Four major functions of attitudes include utilitarian, value- expressive, ego defensive, and knowledge. Utilitarian function is based on rewards and punishments. Value-expressive function refers to a consumer’s central values or self-concept. Ego-defensive function serves to protect the person from threats or internal feelings of threat. Knowledge function refers to the need for order, meaning, and structure.

9. Copyright © 2002 by The McGraw-Hill Companies, Inc. All rights reserved. Cognition, Affect, and Behavior Cognition the beliefs a consumer has about an attitude object Affect the way a consumer feels about an attitude object Behavior the person’s intentions to do something with regard to an attitude object

10. Copyright © 2002 by The McGraw-Hill Companies, Inc. All rights reserved. Exhibit 13.1 Three Hierarchy of Effects Models

11. Copyright © 2002 by The McGraw-Hill Companies, Inc. All rights reserved. The Standard Hierarchy emphasizes a problem-solving process order of consumer responses: cognition, affect, then behavior (learn-feel-do) components of cognition: awareness and knowledge components of affect: liking and preference behavior: intention to buy and actual behavior

12. Copyright © 2002 by The McGraw-Hill Companies, Inc. All rights reserved. The Low-Involvement Hierarchy applies to low-involvement purchase situations were both motivation and received risk are low order of consumer responses: cognition, behavior, then affect (learn-do-feel) most common when the product is inexpensive Quick-Choice Model No role for emotion or affect Impulse purchases

13. Copyright © 2002 by The McGraw-Hill Companies, Inc. All rights reserved. Exhibit 13.2 Quick-Choice Model

14. Copyright © 2002 by The McGraw-Hill Companies, Inc. All rights reserved. The Experiential Hierarchy stresses the importance of consumers’ emotions applies to situations in which consumer are often highly involved in decision making order of consumer responses: Behavior, affect, then cognition (do-feel-learn)

15. Copyright © 2002 by The McGraw-Hill Companies, Inc. All rights reserved. Attitude toward the Ad and Attitude toward the Store Attitudes toward the ad are defined as a predisposition to respond in a favorable or unfavorable manner to a particular advertising stimulus during a particular exposure occasion. Positive feelings are generated by an ad and consumers experience a variety of emotional responses when they are exposed to ads. Determinants of attitudes toward the ad include attitude toward the advertiser, evaluation of the ad execution itself, the mood evoked by the ad, and the degree to which the ad affects viewers’ arousal levels. Similarly, consumers can also have attitudes toward the stores that they visit.

16. Copyright © 2002 by The McGraw-Hill Companies, Inc. All rights reserved. How Attitudes are Formed and Learned Attitudes are formed through one of three related processes Compliance Related to operant conditioning Attitudes are formed to gain reward or avoid punishment Identification Related to operant conditioning Attitudes are formed so as to allow the person to fit in or to be similar to others Internalization More complex than mere conditioning Attitudes become part of a person’s value system Attitudes are strongly held and difficult to change

17. Copyright © 2002 by The McGraw-Hill Companies, Inc. All rights reserved. Consistency and Cognitive Dissonance Cognitive consistency consumers strive to maintain harmony between their thoughts and behaviors. Cognitive dissonance results when there is a discrepancy between behavior and attitude. Self-perception theory people observe their own behavior and use these observations to shape their own attitudes. Social judgment theory people understand the world by matching up new stimuli with information that is already stored in memory.

18. Copyright © 2002 by The McGraw-Hill Companies, Inc. All rights reserved. Consistency and Cognitive Dissonance Balance theory describes how consumers evaluate elements that belong together. consumer perceptions are classified as either positive or negative. perceptions are altered to make them consistent. Element triad: a consumer and her perceptions an attitude object some other person

19. Copyright © 2002 by The McGraw-Hill Companies, Inc. All rights reserved. Exhibit 13.3 Balance Theory and Attitude Change

20. Copyright © 2002 by The McGraw-Hill Companies, Inc. All rights reserved. MultiAttribute Attitude Models MultiAttribute Attitude Models: consumers’ attitudes about brands depend on the beliefs they have about a group of brand attributes. Three important elements: attributes, characteristics of the attitude object beliefs, cognition about the specific object importance weights, reflecting the priority consumers place on the object.

21. Copyright © 2002 by The McGraw-Hill Companies, Inc. All rights reserved. The Basic Fishbein Model The Basic Fishbein Model of Consumer Choice: The model measures: salient beliefs object-attitude linkages evaluations of each of the important attributes. Attitudes are a sum of beliefs and their evaluations. Strategic applications: promotions communications influencing competitors’ belief ratings

22. Copyright © 2002 by The McGraw-Hill Companies, Inc. All rights reserved. The Extended Fishbein Model The Extended Fishbein Model is called the theory of reasoned action. Behavioral intention can be predicted from knowledge of consumers’ attitudes, social beliefs, and personal beliefs. Behavior is predicted from knowledge of behavioral intentions and the judged influence of extraneous events. The model attempts to take into account the strong influence that other people can have on a person’s behavior. Social normative beliefs attempt to capture expectations of others Motivation to comply reflects how strongly a person feels that he must comply with the wishes of others

23. Copyright © 2002 by The McGraw-Hill Companies, Inc. All rights reserved. The Elaboration Likelihood Model The Elaboration Likelihood Model (ELM) of Persuasion: Persuasion refers to an active attempt to change individual attitudes. The ELM has been proposed to explain how persuasion works The ELM describes how individual consumers process new information via different routes, depending on the personal relevance of the information message-processing involvement (high or low) argument strength (strong or weak)

24. Copyright © 2002 by The McGraw-Hill Companies, Inc. All rights reserved. Exhibit 13.4 Elaboration Likelihood Model of Persuasion

25. Copyright © 2002 by The McGraw-Hill Companies, Inc. All rights reserved. How Consumers Respond to Persuasion Attempts The Persuasion Knowledge Model: consumers develop knowledge about persuasion and use this knowledge to respond to persuasion experiences. Predicting Consumer Behavior: attitudes are predictive of behavior intentions.

26. Copyright © 2002 by The McGraw-Hill Companies, Inc. All rights reserved. Choice Models: Expected Utility Theory Expected Utility Theory consumers make choices in a manner that maximizes a utility function, subject to the constraints of time, money income, information and technology. Utility functions utility refers to the amount of happiness that a consumer derives from a product or from a product attribute. Conjoint analysis: one way is to ask consumers to rank order a series of brands, all in the same product category.

27. Copyright © 2002 by The McGraw-Hill Companies, Inc. All rights reserved. Choice Models: Constructive Choice Processes Constructive Choice Processes Consumers construct the most reasonably complex or novel choices as situations demand Consumers use constructive processes because they bring multiple goals to consumer decisions Compensatory models consumers assess the importance of each brand or product attribute and assign a subjective value to each attribute level. Then, consumers consider the alternatives multiplying each attribute’s subjective value times its importance weight and adding across these sums to obtain an overall value for each brand or product option.

28. Copyright © 2002 by The McGraw-Hill Companies, Inc. All rights reserved. Choice Models: Consumer Heuristics Consumer Heuristics: A heuristic is a general rule of thumb that consumers use to simplify a decision task. In one variety of heuristics, the non-compensatory model, a low rating on a single attribute can eliminate a brand from consideration. High ratings on other attributes do not compensate for low ratings on the first attribute Noncompensatory models are likely to be used in many simple and low-involvement decisions because they offer shortcuts and reduce cognitive effort.

29. Copyright © 2002 by The McGraw-Hill Companies, Inc. All rights reserved. Choice Models: Satisficing Decisions Satisficing Decisions: Consumers often make purchase decisions in situations in which information about some alternatives is not available. consumers choose an alternative that satisfies their most important goals. Other goals might be sacrificed. Compared to the expected utility theory, the satisficing theory is more descriptive of how consumers actually make choices.

30. Copyright © 2002 by The McGraw-Hill Companies, Inc. All rights reserved. Choice Models: Elimination by Aspects Another kind of noncompensatory consumer heuristic is to eliminate some options on the basis of single attribute. Consumers could reject alternatives by starting with the most important attribute first, but this does not have to be the case. A consumer could also start with any random attribute. Elimination is a consumer choice strategy that is adopted to deal with the information overload that exists in many markets. Conjunctive rule: eliminate any alternatives that fall outside of certain predefined boundaries.

31. Copyright © 2002 by The McGraw-Hill Companies, Inc. All rights reserved. Other Choice Models Inference Making enables consumers to make a choice without complete information by generalizing from the information they know. List Making a simplification strategy involving lists that contain products, brand names and/or attributes.

32. Copyright © 2002 by The McGraw-Hill Companies, Inc. All rights reserved. Other Choice Models Relational Heuristics compare the relative advantages and disadvantages of an option to those of other options in a particular background context. Prospect Theory builds on the notion that consumers have to give up something in order to get something back in the marketplace; proposes that people’s decisions are based on how they value the potential gains and losses that result from making choices.

33. Copyright © 2002 by The McGraw-Hill Companies, Inc. All rights reserved. Key Terms affect attention attitude attitude formation attitude models attitude strength attitude toward the ad awareness balance theory behavior expected utility theory experiential hierarchy of effects extended Fishbein model Fishbein model functional theory of attitudes heuristic identification inference making

34. Copyright © 2002 by The McGraw-Hill Companies, Inc. All rights reserved. Key Terms (continued) behavioral intentions beliefs choice models cognition cognitive consistency cognitive dissonance compensatory models compliance conjoint analysis internalized knowledge function list making low-involvement hierarchy of effects multiattribute attitude models noncompensatory models persuasion persuasion knowledge model

35. Copyright © 2002 by The McGraw-Hill Companies, Inc. All rights reserved. Key Terms (continued) conjunctive rule constructive choice processes ego-defensive function elaboration likelihood model elimination by aspects endowment effect evoked set preference relational heuristic satisficing decisions self-perception theory social judgement theory standard hierarchy of effects utilitarian function utility functions value-expressive function