CHAPTER 7 ATTITUDES AND ATTITUDE CHANGE WHAT DO YOU THINK POLLING QUESTION It’s pretty hard to change my attitude about products that I dislike. Strongly disagree 1 2 3 4 5 6 7 Strongly agree Have students access www.cengagebrain.com to answer the polling questions for each chapter of CB. Ask them to take the online poll to see how their answers compare with other students taking a consumer behavior course across the country. Then turn to the last page of the chapter to find the What Others Have Thought box feature. This graph is a snapshot of how other consumer behavior students have answered this polling question thus far. LEARNING OUTCOMES After studying this chapter, the student should be able to: L01 Define attitudes and describe attitude components. L02 Describe the functions of attitudes. L03 Understand how the hierarchy of effects concept applies to attitude theory. L04 Comprehend the major consumer attitude models. L05 Describe attitude change theories and their role in persuasion. L06 Understand how message and source effects influence persuasion. SUGGESTED LECTURE OPENER Marketers know that consumers’ attitudes and beliefs can play a strong role in their buying behaviors. In this country, one of the most powerful of these is the ever elusive American Dream. While difficult to define, most people would include owning their own home as part of their idea of “making it.” And this seems to be holding true, even in this current economic downturn. What developers and marketers need to respond to here, is not the belief that home ownership is a powerful testament to success, but to American’s changing attitudes about what they need and are willing to spend when purchasing a home. The years of maxing out qualification budgets and flipping houses into luxury palaces are no longer present. According to a recent Coldwell Banker Real Estate survey, 68% of buyers paid less for a home than the amount for which they qualified, while 53% reported that they purchased a home because it was more economical than renting. [Source: Michael Lerner, “Buying Home Still American Dream,” The Washington Times, July 22, 2010, http://www.washingtontimes.com.] ©2012 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 1 LECTURE OUTLINE WITH POWERPOINT® SLIDES Slide 1 Slide 2 LO1. Define attitudes and describe attitude components. Attitudes and Attitude Components Slide 3 Attitudes are relatively enduring overall evaluations of objects, products, services, issues, or people. It is therefore not surprising that the attitude concept is one of the most researched topics in the entire field of consumer research. Slide 4 Components of Attitudes Attitudes possess three important components, as evidenced in the ABC approach to attitudes: 1. Affect “I really like my iPad.” 2. Behavior “I always buy Apple products.” 3. Cognitions (or beliefs) “My iPad helps me to study.” ©2012 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 2 Slide 5 Q: Ask students to provide another example besides the iPad to illustrate the ABC concept of attitudes. A: Answers will vary. It might be easier for students to use their favorite products such as cell phones, makeup, and brands of clothing. LO2. Describe the functions of attitudes. Functions of Attitudes Slide 6 According to the functional theory of attitudes, attitudes perform four functions. The four types of functions are summarized in Exhibit 7.1. 1. Utilitarian Based on the concept of reward and punishment. 2. Knowledge Allows consumers to simplify their decision-making processes. 3. Value-expressive Found in a number of consumer settings and enable consumers to express their core values, self-concept, and beliefs to others. 4. Ego-defensive Works as a defense mechanism for consumers. There are several ways in which this function works. First, the ego-defensive function enables consumers to protect themselves from information that may be threatening. Another example is when consumers develop positive attitudes toward products that enhance their self-image. ©2012 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 3 Slide 7 Have students provide examples of each of the four functions of attitudes. Exhibit 7.1 is a source of examples, but push students to come up with new examples while working in pairs. LO3. Understand how the hierarchy of effects concept applies to attitude theory. Hierarchy of Effects Slide 8 The attitude approach that suggests that affect, behavior, and cognitions form in a sequential order is known as the hierarchy of effects approach. They may form in one of the following four levels or “hierarchies.” These hierarchies are presented in Exhibit 7.2. 1. High-Involvement Hierarchy This “standard learning” hierarchy of effects occurs when a consumer faces a high-involvement decision, such as purchasing a new gaming system like Wii or Xbox. 2. Low-Involvement Hierarchy Many purchases can be considered routine, even boring. Popular examples include items found on a grocery list, such as paper towels. 3. Experiential Hierarchy Consumers purchase products or perform behaviors simply because it “feels good” or “feels right.” For example, when a waiter brings around the dessert tray, many people are tempted to purchase the item on impulse. 4. Behavioral Influence Hierarchy This hierarchy suggests that consumer behavior can occur without either beliefs or affect being strongly formed beforehand. An example is that people are influenced to relax at a restaurant by listening to the soft, slow music playing. Restaurant managers hope it entices them to buy more drinks. ©2012 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 4 Slide 9 Have students pay attention to the music playing in their favorite store or restaurant. Do they usually hear it? What does it influence them to do? The right choice of music can be a critical factor in retail success. LO4. Comprehend the major consumer attitude models. Consumer Attitude Models Slide 10 Attitude-Toward-the-Object Model In this section, some of the major approaches to measuring consumer attitudes are presented; beginning with a well-known approach advanced by Martin Fishbein and Icek Azjen named the attitude-toward-the-object (ATO) model. This model proposes that three key elements must be assessed to understand and predict a consumer’s attitude. 1. Beliefs Consumers have beliefs about the attributes or features that a product or choice possesses. 2. Strength of the belief How strongly does a person feel that a certain brand does indeed have the desired feature? 3. Evaluation of the attribute in question These elements are combined to form the overall attitude toward the object (referred to as “Ao”, or “attitude toward the object”). ©2012 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 5 Slide 11 Using the ATO Approach To understand this model, first consider how the various elements are measured. To begin, note that belief ratings can be measured on a 10-point scale, such as the following: How likely is it that the Sony television will give you a clear picture? 1 2 3 4 5 6 Extremely unlikely 7 8 9 10 Extremely likely An example may help to clarify the use of this formula. Think of the situation that Brooke is facing concerning the selection of a fitness center. How could you predict her attitude? This information is presented in Exhibit 7.3. Slide 12 Q: Have students think about a health club that they want to join, but in this scenario, they are the marketer for the club. How do members of their target segment feel about the amenities offered in health clubs? How do they feel about circuit training? How do they feel about the variety of class offerings? A: Answers will vary. If managers were to discover that the target segment does not realize the degree of variety offered in the club, this information would be something to emphasize in advertising campaigns. The focus of this exercise is to bring the discussion to a close about the ATO approach. ©2012 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 6 The ATO approach is known as a compensatory model. With compensatory models, attitudes are formed holistically across a number of attributes, with poor ratings on one attribute being compensated for by higher ratings on another attribute. Implications of the ATO Approach Information obtained from this model has important marketing implications. First, note that attitude research is most often performed on entire market segments rather than on individuals. Overall, the attitude-toward-the-object model has value from both an academic and practical viewpoint. Do Attitudes Always Predict Behavior? Just because a consumer has a positive attitude toward a product does not mean that this consumer will always purchase the product. Attitude-behavior consistency refers to the extent to which a strong relationship exists between attitudes and actual behavior. Because attitudes don’t always predict behavior, other approaches have been developed to improve upon the ATO approach, such as the behavioral intentions model. Behavioral Intentions Model The behavioral intentions model, sometimes referred to as the theory of reasoned action, has been offered as an improvement over the attitude-toward-the-object model. This model differs from the ATO model in a number of important ways: 1. Rather than focusing explicitly on attitudes, the model focuses on intentions to act in some way. 2. The model adds a component that assesses the consumer’s perceptions of what other people think they should do. 3. The model explicitly focuses on the consumer’s attitude toward the behavior of buying rather than the attitude toward the object. The aspects of the behavioral intentions model are presented in Exhibit 7.4. Slide 13 Factors That Weaken Attitude–Behavior Relationship Although attitude models are very popular in consumer research, researchers note that a number of factors can detract from the accuracy of this approach. Strong environmental pressures can also keep consumers from performing intended behaviors. For example, when ©2012 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 7 consumers feel rushed, decisions are often made in haste. Finally, attitude–behavior models tend to not perform very well in impulse-buying situations. 1. Time – As the length of time between attitude measurement and overt behavior grows, the predictive ability of attitudinal models weakens. 2. Specificity of attitude measured – Has an impact on accuracy. 3. Environment – Strong environmental pressures can keep consumers from performing intended behaviors. 4. Impulse situations – Attitude–behavior models tend to not perform very well in impulsebuying situations. Slide 14 Alternative Approaches to Attitude The theory of planned action expands upon the behavioral intentions model by including a perceived control component. Slide 15 Expanding the Attitude Object Research has shown that there is generally a positive relationship between a consumer’s attitude toward an advertisement and their attitude toward a particular product. Another area of growing research interest has also focused on a consumer’s attitude toward the company. The study of consumer beliefs toward companies (typically referred to as corporate associations) is therefore gaining considerable attention from consumer researchers. A specific area of interest is the corporate social responsibility of companies. ©2012 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 8 Have students compile a list of companies that would fit the example of alternative approaches to attitude. Examples might include Southwest Airlines, Patagonia, and Google. Attitude Tracking Attitude tracking refers to the extent to which a company actively monitors their customers’ attitudes over time. While attitudes are relatively enduring evaluations of objects, products, services, issues, or people, these attitudes should be monitored over time to gauge changes that may occur. LO5. Describe attitude change theories and their role in persuasion. Attitude Change Theories and Persuasion Slide 16 An important issue in the study of consumer behavior is how attitudes are changed. The term persuasion refers to specific attempts to change attitudes. There are many different persuasive techniques, and the following discussion presents the theoretical mechanisms through which persuasion may occur. Slide 17 Attitude-Toward-the-Object Approach To change attitudes according to this approach, marketers can attempt to change beliefs, create new beliefs about product features, or change evaluations of product attributes. ©2012 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 9 Changing Beliefs – As discussed in our fitness center example, marketers may attempt to change consumers’ beliefs. Adding Beliefs about New Attributes – Another strategy for changing attitudes under the ATO approach is adding a salient attribute to the product or service, which may require a physical change to the product itself. Changing Evaluations – The marketer would try to convince consumers that an attribute is not as positive (or negative) as they may think. For example, a fitness center may attempt to convince consumers that location is not always a positive thing. Slide 18 Behavioral Influence Approach Another strategy commonly applied by marketers is to directly change behaviors without first attempting to change either beliefs or attitudes. For example, changing a retail store’s design or atmospherics can have a direct influence on behavior. The U.S. government wanted to change the way residents thought about the census and make sure people responded to the survey so they created the 2010 Census campaign, “We Can’t Move Forward Until You Mail it Back.” Creating more positive consumer attitudes toward the census was an important first step in collecting the information. Slide 19 Q: Ask students how much they heard about the U.S. Census campaign. Did they fill out a form themselves or with their families? Do they think the government changed people’s attitudes toward the census? Did they learn anything they didn’t know through the census campaign? ©2012 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 10 A: Answers will vary. Changing Schema-Based Affect From an attitude perspective, this means that a schema contains affective and/or emotional meanings. If the affect found in a schema can be changed, then the attitude toward a brand or product will change as well. Slide 20 The Elaboration Likelihood Model The elaboration likelihood model (ELM) illustrates how attitudes are changed based on differing levels of consumer involvement. According to the ELM, a consumer begins to process a message as soon as it is received (see Exhibit 7.5). The Central Route If consumers find that the incoming message is particularly relevant to their situation (thus making them highly involved), then they will likely expend considerable effort in comprehending the message. Contradicting thoughts are known as counter arguments, and thoughts that support the main argument presented are known as support arguments. In the central route, the consumers rely on central cues. Central cues refer specifically to information found in the message that pertains directly to the product, its attributes, its advantages, or the consequences of its use. The Peripheral Route If consumers are not involved with a message or they lack either the motivation or the ability to process information, the peripheral route to persuasion will be followed. In this route, consumers are unlikely to develop cognitive responses to the message (either supporting arguments or counter arguments). They are instead more likely to pay attention to the attractiveness of the person delivering the message, the number of arguments presented, the expertise of the spokesperson, and the imagery or music presented along with the message. These elements of the message (that is, nonproduct-related information) are referred to as peripheral cues. A popular ad campaign for Corona beer illustrates peripheral processing. The campaign includes a series of advertisements that show a man and woman relaxing on a beach. ©2012 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 11 Slide 21 Low-Involvement Processing in the Consumer Environment It is important to note that the vast majority of advertisements to which consumers are exposed are processed with low-involvement processing. Balance Theory The balance theory approach was introduced by social psychologist Fritz Heider. The basic premise of balance theory is that consumers are motivated to maintain perceived consistency in the relations found in mental systems. This approach is based on the consistency principle, which states that human beings prefer consistency among their beliefs, attitudes, and behaviors. An example is shown in Exhibit 7.6. Slide 22 Social Judgment Theory This theory proposes that consumers compare incoming information with their existing attitudes about a particular object or issue. These aspects of the theory are presented in Exhibit 7.7. Slide 23 ©2012 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 12 LO6. Understand how message and source effects influence persuasion. Message and Source Effects and Persuasion Slide 24 An important part of understanding persuasion is comprehending the many ways in which communication occurs. For this reason, it is important to consider the roles of message effects and source effects in persuasion. A message effect is a term used to describe how the appeal of a message and its construction affects persuasion. Source effects refer to the characteristics of the person or character delivering a message that influence persuasion. To understand how message and source effects work, we can follow the basic communication model in Exhibit 7.8. Slide 25 A basic communication model is also referred to as a “one-to-many” approach because it illustrates how a marketer may attempt to communicate with numerous consumers. The six areas of a communication model are as follows: 1. Source – The source encodes a message and delivers the message through some medium. 2. Message – The message is the advertisement. 3. Medium – The medium could be personal (one consumer talks to another or a salesperson speaks with a customer) or impersonal (a company places an ad on television, radio, or a web page). 4. Receiver – The consumer decodes the message and responds to it in some way. 5. Feedback – Feedback consists of the responses that the receiver sends back to the source. 6. Noise – Noise represents all of the stimuli that are present in the environment that disrupts the communication process. ©2012 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 13 Slide 26 Interactive Communications Interactive communications—including the Internet, cell phones, text messaging, e-commerce, and smartphones—have radically changed the communication paradigm. Twentyseven percent of the world’s population is using the Internet (more than 1.8 billion consumers). The interactivity that the Internet provides creates major changes for the traditional communication conceptualization. A newer conceptualization is presented in Exhibit 7.9. Slide 27 Message Appeal A number of appeals are used by advertisers to impact the persuasiveness of an advertisement. 1. Sex Appeals Use of sexual imagery in advertisements certainly is popular in many parts of the world. 2. Humor Appeals – Humor attracts attention, creates a positive mood, and enhances the credibility of a source. However, the overall effectiveness of a humorous ad depends on the individual consumer. 3. Fear Appeals – Fear appeals evoke some level of fear in the target audience as a means of changing attitudes and behaviors. Popular examples include the truth campaigns aimed at teenagers. Fear appeals appear to be effective when they: a. Introduce the severity of a threat. b. Present the probability of occurrence. c. Explain the effectiveness of a coping strategy. d. Show how easy it is to implement the desired response. ©2012 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 14 Message Construction Advertisers must consider a number of issues when constructing a message. Potential questions to consider include the following: Should an ad present a conclusion, or should the consumer be allowed to reach his own conclusion? Should comparative ads that directly compare one brand against another be developed? Where should important information be placed? Should the message be straightforward and simple, or complex? Slide 28 Source Effects The source of a message also influences consumer attitudes. 1. Source Credibility – Plays an important role in advertising effectiveness. In general, credible sources tend to be more persuasive than less credible sources. 2. Source Attractiveness – Another quality that has received a great deal of attention. 3. Source Likeability – Also affects a spokesperson’s effectiveness. Likeable sources tend to be persuasive. 4. Source Meaningfulness – Refers to matching product characteristics to the dominant characteristics of a source. Slide 29 Q: Have students name celebrities that would be credible, attractive, and likeable. What products should they represent? Why? What products should they avoid? ©2012 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 15 A: The instructor may want to mention past celebrity blunders to spark the conversation. Examples could include Tiger Woods, LeBron James, Charlie Sheen, and Lindsey Lohan. VIDEO CLIP PowerPoint Clip from Southwest Airlines Run time 1:41 minutes Slide 30 Founded on the basic principle of simple, no-fuss flying with a high-level of staff positive attitude, Southwest Airlines (SWA) remains one of this country’s highest rated businesses in terms of both work culture and customer service. However, in the current economic downturn, and the particularly negative effect it has had on the commuter industry, SWA has to carefully consider the implications of its marketing and pricing efforts. While most airlines are increasing fees and cutting services in order to protect revenues, SWA has responded by keeping a oneprice per flight experience policy. This concept is intended to reinforce consumer’s positive attitudes towards the airlines customer service and product delivery. Ask your students: 1. How does SWAs approach to no-fee flying (offering the entire flight experience for one price) reinforce consumers’ positive attitudes towards the airline? Answer: While many airlines are unbundling their product and charging fees for traditionally free or included services in an effort to raise revenues, SWAs approach of a single price—even if it is higher than previously—avoids leaving consumers with a sense of being “nickled and dimed.” 2. How does the Business Select option specifically accomplish this goal? Answer: For a higher price than the same non-Business Select flight, but without fees, consumers gain extra services they feel are important enough to pay for, such as early boarding and extra mileage points. ©2012 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 16 END OF CHAPTER MATERIAL PART 2 CASE ANSWERS Case 2-1 Are Three Wheels Better than Two?: The Can-Am Spyder Questions: 1. Do purchasers of the Can-Am Spyder have utilitarian motivations? Hedonics ones? Both? As with other forms of transportation, the Spyder provides satisfaction of a basic utilitarian motivation to be able to travel with ease, getting from point A to point B. However, it is likely that most purchasers do so primarily to satisfy hedonic motivations. ‘Weekend warrior’-types are likely to consider this vehicle a ‘toy’ that they use mostly for excitement and personal gratification. 2. BRS states that it delivers “paradigm-shifting vehicles that push the envelope”.1 Considering a prospective customer’s existing product schema for a motorbike, discuss the implications for cognitive organization, comprehension and acceptance of this vehicle by motorcycle enthusiasts. A typical motorcycle owner may have a schema about a bike that includes concepts such as “two-wheeled”, “exciting”, “cool” and even maybe “risky”. The Spyder is not considered a true member of the motorcycle class, probably because it does not share all of these characteristics in the minds of the consumer. This may make it harder for the consumer to automatically accept this new vehicle, and makes its introduction more risky for BRS. It may make interpretation and comprehension of the Spyder difficult initially, resulting in an accommodation or even a contrast reaction during attempts to categorize it. BRS is counting on the fact that incongruencies are just enough to induce curiosity but not dislike. 3. At introduction of this vehicle, would an attitude change strategy be necessary to convert the curious into customers? If so, what might be effective? Those who are intrigued by the Spyder may still have misconceptions about it. Among motorcycle riders, it may be important to change existing beliefs that the thrill of the ride can exist even with enhanced stability factors, or that safety is of more importance now in their lives. In the ELM method, potential customers are likely to spend much effort in comprehending messages about the vehicle, so the central route to persuasion is likely to be activated. Central cues will be effective, including arguments about various safety and styling attributes. 1 BRP adds a Touring model to its Can-Am Spyder Roadster line-up. (2009, September 2). PR Newswire, pNA. ©2012 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 17 4. Visit the website spyder.brp.com as if you were a potential customer for this product. Is the typical site visitor likely to learn about the product intentionally or unintentionally? Do you think the website has been created to maximize the learning that can occur there? Learning will be especially important for BRS’s Can-Am Spyder since it is so unique. Consumers often learn about products unintentionally through personal contacts, experiences and even advertising. The vehicle is still relatively new, distribution is limited and advertising has been minimal, meaning that the website may be of relative importance for the education of the customer. Website visitors are likely to be learning intentionally there, through their own effort and cognitive processes, as they seek specific information about the Spyder. The site has a great deal of information about the models, gear and accessories, as well as dealerships and the online community. But nothing is likely to replace the learning that would occur through experience, such as a test drive. A major function of the site is to drive customers to local events where that is possible. Case 2- 2 Shanghai Advertisements Questions: 1. What function or functions does Mei Li’s attitude toward the advertisements that line the street where she lives play? First of all, her attitude adopted from her father—that the ads will corrupt her education and family responsibility—plays a utilitarian function in that maximizes familial rewards and minimizes any punishment. It keeps her in good favor with her father. In some ways, it also acts as an ego-defensive function. The attitude protects Mei Li from any of the potential problems associated with the ads in terms of self-concept and self-esteem. However, the last ad, Mei Li’s favorite, may actually serve a value-expressive function for the girl. She believes the makeup is glamorous and sophisticated, something that she wants to be, and her attitude toward the brand expresses that set of values. 2. Using the psychoanalytic approach to motivation, how does Mei Li deal with the advertisements that surround her? Psychoanalytically speaking, the personality consists of the id, ego, and superego. The id is all-about “if it feels good, do it” in the sense that it acts under the pleasure principle. The superego matches societal norms and expectations as a “civilizing” element. Both of these are managed by the ego which resolves conflicts between the two. The ads are attempting to work on Mei Li’s id, urging her to be herself and the like. But she has her father’s voice in her head, the superego, that is telling her to ignore the ads and their corruptive influence. Her ego, on the other hand, is resolving that conflict, particularly with the last ad concerning the make-up. It’s here ego, most likely, that has told her to ©2012 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 18 wait until she was old enough to purchase make-up that allows her to manage the ad as part of her everyday scenery. 3. What effect do these Western ads appear to be having on the self-concept of Chinese consumers? The self-concept involves all the thoughts and feelings that one has about him or herself which plays a huge part in self-esteem. The more positive one feels about him or herself, the higher or more positive the self-esteem. When individuals are subjected to a myriad of advertisements that feature glamour and sophistication in the form of someone who looks different than the self, this could potentially lead someone to begin to think negatively about the self. Instead of a Chinese girl like Mei Li2 comparing herself to other Chinese girls that she looks like, she may now be comparing herself to Western models who she does not look like. Since they are glamorous and, by contrast, she may think she is not, then the way to look like the Western model is to get the plastic surgery, modifying her look so that she is now comparable. 4. What part does the perception process play in Mei Li’s reaction to the make-up advertisement? First of all, she has to sense the ad to be able to make sense of it, which she does each time she leaves her apartment. Then, she has to organize the image into meaningful and recognizable categories. She does so by breaking the ad down to glamorous woman, evening dress, cute guy, checking out, and make-up. In doing so, she begins to comprehend or interpret the meaning of the ad through an act of assimilation. She readily recognizes the different parts and what they mean when put together into the advertisement. Finally, she reacts by liking the ad and vowing to buy the brand when she is allowed to purchase and wear make-up. Case 2-3 Thrill-Seekers Unite Questions: 1. Develop a psychographic profile of a consumer who identifies himself/herself as a “thrill seeker”. Identify three personality traits that you think would be associated with a consumer who would attend the ESPN Summer or Winter X Games. How might consumers with differing amounts of thrill seeking (very low versus very high) have different attitudes about a reverse mortgage? Students may answer this question individually or in teams. Students should compile a list the personality traits of a “thrill-seeker”. Examples of personality traits include but 2 By the way, Mei Li means “beautiful” in Chinese ©2012 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 19 are not limited to; extroversion, innovativeness, self-consciousness, need for excitement, competitiveness, and impulsiveness. Students may also reference VALS in their answer. Instructors may generate class discussion by asking students to explain the various ways psychographic profiles may be used by marketers. Consumers use a reverse mortgage to get access to other things – this it offers high utilitarian value. The other things – like extreme supports for retired consumers – provide hedonic value. But, a consumer low in thrill seeking may not see so much value in a reverse mortgage because they are likely to see it as more risky. 2. Choose an extreme sports event and describe its brand personality. Answers to this question will vary depending on the choice of the sporting event. Students should be allowed to review the definition of brand personality. Instructors may facilitate class discussion by asking students to comment on whether or not they think brand personality is related to product positioning. Instructors wishing to offer more guidance to students may provide student teams with examples of extreme sports products (i.e. Burton snowboards or a Gary Fisher mountain bike). Teams could then be instructed to research these products online and describe their brand personalities to the rest of the class. This question may also be useful to demonstrate to students how individual student personality traits may impact the overall group’s description of their product’s brand personality. 3. Describe three ways you think the personality of an extreme sports consumer affects their shopping decisions. How does your personality have an impact on the product/services you purchase? Answers to this question will vary. An extreme sports consumer will most likely be highly involved and require central routes to persuasion. This consumer would also be very knowledgeable about alternative brands. Students should state whether or not they feel the personality traits of thrill-seekers correlate with their purchases. To facilitate class discussion, the instructor may also explain the concept of self-product congruence. Case 2-4 Do zipped commercials influence you? Questions: 1. Why do you think zipped commercials can still impact a viewer? The most common explanation is perceptual fluency and the mere exposure effect. The more you are exposed to a stimulus, be it a person, object, etc. the more familiar it will seen to you and the most a person will like it. Although people may not recall zipped commercials, they have been exposed to certain brand names. These brand names may be or at least seem, more familiar and thus, the viewer will like/prefer them over others. ©2012 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 20 2. How should once judge the effectiveness of television commercials? Is recognition and recall of the brand name enough? What other measures would you suggest? Using both explicit (recall and recognition) and implicit measures (see reference 7 for an in depth discussion) would be prudent to help measure the effectiveness of zipped commercials. 3. What are ways advertisers could counteract the effects of zipping? How could you encourage consumers to watch commercials in real time? There are many possible answers students may come up with. One technique advertisers can use is to hire actors from the show one is watching. Zippers may confuse the commercial for the actual show and play it in real time. Although this could lead to mixed attitudes toward the commercial that in effect, tricked the viewer into playing it. In 2006, Sprite have inserted messages into ads and explicitly told viewers that if they used their DVRs to slow down the commercial they could see special messages one would not otherwise be able to see. ONLINE CASE ANSWERS Visit www.login.cengage.com to access the online case studies for CB. 1. If you are in charge of the marketing strategy for Coca-Cola BlãK in America, who should be your target consumers? Why? Answer: It all depends. One of the target age ranges could be 18-25. This group really enjoys caffeinated beverages. Because Coca-Cola has such a great reputation, a low-calorie beverage (45 calories/serving) that offers the great taste of Coca-Cola and coffee all in one (Coca-Cola BlãK, 2007) may be appealing. 2. What kinds of advertising messages would appeal to the target consumer to cause an attitude change toward Coca-Cola BlãK? Answer: While acknowledging the classic aspect of Coca-Cola, it is also very important to show that the company is being innovative. Focusing on the innovative idea of combining coffee with the classic cola beverage will appeal to a wider range of the market, not just Starbucks consumers. Packaging can be a means to accomplish the task of overcoming the price justification issue. Coke bottles BlãK in glass bottles, thus giving the perception of value a boost. The shape of the bottle is sleek, slightly shaped like the contours of a woman’s body, thereby adding sex appeal. Also, the lettering is gold against the dark bottle color, adding to the sophisticated look of BlãK. Promotion is another way that Coca-Cola can add to the perceived value to overcome the issue of price justification. The advertisements for BlãK use slow, jazzy music and dark muted colors. The imagery includes snapshots of the bottle with “sweat” beads clinging onto its contours, again adding to its sex appeal. Also, the wording cues use terms such as “sophisticated” to convey the mature, chic perception of BlãK. All of these promotional elements should add to the perception of value to shift consumer attitudes favorably toward BlãK and allow Coca-Cola access to a part of the coffee beverage market. ©2012 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 21 3. Compared to ordinary Coca-Cola, Coca-Cola BlãK is expensive ($1.99). How should Coca-Cola BlãK be positioned? Answer: If Coca-Cola BlãK positions itself with the other soft drinks, it will not succeed because most soft drinks are priced at or under $1.00 for a bottle of the same size. By placing Coca-Cola BlãK in the category with specialty coffee and energy drinks, Coca-Cola will create the value needed to sell their product at that price. Comparing the $1.99 cost of Coca-Cola BlãK with the $4.39 that is spent on a Starbucks beverage, consumers could get very close to the same taste and energy for less money—a better value. REVIEW QUESTIONS (*) Indicates material on prep cards. 1. [LO1] Define consumer attitudes. Answer: Consumer attitudes are relatively enduring overall evaluations of objects, products, services, issues, or people. 2. *[LO1] What are the various components to attitude? How are they different from each other? Answer: According to the ABC approach, attitudes have three components: affect, behavior, and cognition. Affect refers to the feelings that a consumer has about an object. Behavior encompasses how a consumer acts or intends to act toward particular objects. Cognition refers to the beliefs that a consumer has about a particular object. The three components are distinct in that they refer to different elements. 3. [LO2] Using your own examples, explain the four functions of attitudes that are presented in this chapter. Answer: There are many ways in which students may answer this question. The utilitarian function is based on the concept of reward and punishment. As the text indicates, attitudes can be used to gain acceptance from others. Perhaps a student has expressed a liking for a particular rock band in order to appear more favorable to another person. The knowledge function allows consumers to simplify decision-making processes. Perhaps a student doesn’t like to drink alcohol. If she hears about an upcoming big campus party, she may decide not to attend simply because she doesn’t like being in situations where drinking will be encouraged. The value-expressive function enables the consumer to use attitudes as expressions of their true values. In the political season, consumers often express their support for a candidate because of deeply held values. The ego-defensive function serves as a defensive mechanism. Perhaps a student chooses to ignore warnings about drinking and driving because they have positive attitudes about drinking. 4. [LO2] Do you think you have personally used each of the four functions of attitudes? Provide examples of the ways in which you have used each function. Answer: Responses here will generally match those found in Question #3. ©2012 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 22 5. [LO3] What is meant by the hierarchy of effects? Differentiate between the highinvolvement, low-involvement, experiential, and behavioral influence hierarchies. In what situations are you most likely to observe each hierarchy at work? Answer: The hierarchy of effects suggests that there is a sequential ordering to how beliefs, affect, and behavior are formed. The purchase context influences which hierarchy will come into play. The high-involvement (or standard learning) hierarchy occurs when consumers first develop thoughts about a product, followed by affect, and then by behavior. This hierarchy generally works in situations in which products under consideration involve some kind of risk. The low-involvement hierarchy is at work when the purchase context does not involve significant risk. Here, behavior simply follows beliefs that the consumer has about a product. Any affect that is developed toward the product generally occurs after behavior has occurred. The experiential hierarchy is at work when a consumer acts on strong feelings toward some product. Impulse purchases are often based on the experiential hierarchy. Finally, the behavioral influence hierarchy comes into play when strong environmental forces influence behavior in the absence of any strong feelings or thoughts. Consumers are conditioned to act in various ways in different contexts. For example, fast food restaurants often play pop music that encourages consumers to hurry through their meal and be on their way. 6. [LO3] Describe ways in which you think the hierarchy of effects approach applies to recent purchases you have made. Answer: Responses to this question will vary. The focus here is to prompt students to consider how the different hierarchies relate to their everyday lives. If the student gives this question any thought, they should be able to come up with several examples of how the hierarchies apply to their lives. 7. *[LO4] What are the components of the attitude-toward-the-object model? What are the components of the theory of reasoned action? Answer: There are three components in the attitude-toward-the-object model. These include beliefs about relevant attributes, the strength of the beliefs that a focal product possesses these attributes, and evaluation of the attributes in question. The theory of reasoned action includes attitudes toward performing some behavior and subjective norms. 8. [LO4] How does the theory of reasoned action approach differ from the attitude-towardthe-object approach? Answer: There are several ways in which these approaches differ. The theory of reasoned action focuses on behavioral intentions and attitudes toward behaviors. The attitude-towardthe-behavior approach includes beliefs about the consequences of performing a behavior as well as feelings about the consequences. It also includes normative pressures from others. 9. [LO4] Think of a recent high-involvement purchase that you have made such as buying a car, buying a television, or selecting an apartment. How did the attitude-toward-the-object model apply? Answer: Responses to this question will vary. It should not be difficult for students to come up with ways to apply the attitude-toward-the-object approach to their daily lives. The ©2012 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 23 examples provided in the question (cars, television, apartments) apply very well to this approach. The important issue here is to ensure that students can list relevant attributes, discuss how they believe each alternative rates on the attributes of the product, and provide their overall evaluation of the attributes. Of course, it is also important to ensure that students can combine all of this information according to the model when arriving at an overall attitude score. 10. [LO5] What are the major attitude change theories? Answer: Marketers can focus on the various elements of the ATO approach (relevant attributes, strength of beliefs, evaluation of attributes) when attempting to change consumer attitudes toward their products. By focusing on the environment and the “servicescape,” managers can attempt to change behaviors through the behavioral influence approach. The schema-based affect approach suggests that managers can attempt to add a positive affect to the product schemas that consumers hold about products and product categories. The Elaboration Likelihood Model suggests that attitude change will occur either through a central or peripheral route depending on the consumer’s attention, comprehension, and involvement. The Balance Theory approach suggests that marketers should pay close attention to how well celebrity endorsers are liked by their target markets. The Social Judgment Theory approach suggests that managers should have knowledge of how consumers feel about their products when they develop marketing messages. To persuade consumers, messages should fall within the latitude of acceptance and avoid the latitude of rejection. 11. [LO5] In what ways do you think the Elaboration Likelihood Model applies to a recent ad that you have seen? If you are highly involved with a particular product, do you care about the expertise of who is delivering a message? Would you have the same attitude if you are not involved with the product? What elements of the message are most persuasive then? Answer: Student responses to this question will vary. Just because consumers are highly involved does not mean that they do not care about the expertise of the person delivering a message. Rather, they are more likely to be impacted by the message itself. If they are not involved with the product, however, they are more likely to pay attention to the expertise of the person delivering the message. They are also more likely to be impacted by other peripheral cues that are presented. The focus of this question is to prompt students to think about the differences between central and peripheral routes to persuasion and how these routes are present in their daily lives. 12. [LO6] Summarize the major types of message appeals and source effects. Describe products that are often advertised using the various message appeals. Answer: Message appeals include sex appeals, fear appeals, and humor appeals. Intimate apparel is often promoted with a degree of sex appeal. Promoting the idea of “Don’t Drink and Drive” often follows fear appeals. Humor appeals are used when promoting all types of products and services. In fact, humor appeals are often used to increase the involvement of consumers with otherwise mundane products. Many examples may apply here. Source effects include issues such as credibility, attractiveness, likeability, and source meaningfulness. ©2012 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 24 13. *[LO6] Q-score ratings are used to describe the favorableness of celebrity endorsers. Who are your favorite celebrities? What products do you think they would be most effective in endorsing? What source characteristics do they possess? Answer: Students responses will vary. Athletes are commonly thought of when determining favorite celebrities, and they often promote sports-related products. Actors are also commonly cited, and they promote all types of products. The focus here is to prompt students to focus on source meaningfulness. INTERACTIVE/APPLICATION EXERCISES 14. During an evening of television viewing, write down all of the advertisements you see. Which ones did you like? Which ones did you dislike? Does your attitude toward the advertisements affect your attitudes toward the products being advertised? Answer: Student responses to this question will vary greatly, and there are many things that can be assessed here. Why did the student like or dislike a certain commercial? Also, this is a good way to consider the attitude-toward-the-object/attitude-toward-the-advertisement relationship. Students are likely to report that these two issues are not strongly related. However, some students may report that their attitudes about advertisements do influence how they feel about products. 15. On another occasion, make a record of all of the advertisements that you see when watching television, but this time note how many ads can be classified as fear appeals, sex appeals, or humor appeals. Of these ads that you have classified, which ones do you think are most persuasive? Why? Answer: What is being assessed here is how much impact students think can be found in the various message appeals. Responses will vary. This activity can lead to some very good classroom discussion. 16. While visiting one of your favorite social networking sites (like Facebook, for example), keep a log of the number of products that you see being discussed. In what ways do these discussions influence you? Answer: Student responses will vary. The point of this question is to get students thinking about how their attitudes are influenced by social networking sites. 17. *Consider all of the Facebook groups that you belong to, or the tweets that you follow on Twitter. How do/does this behavior(s) say anything about your attitudes towards brands or products? Answer: Responses will once again vary. Students join groups and follow tweets of people/brands/products that they like, or dislike. 18. Perform an Internet search of one of your favorite celebrities. Focus on finding the number of products that he or she endorses. Do you think that these endorsements make sense? What makes you think that your celebrity would be a good endorser for these items? ©2012 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 25 Answer: This activity focuses on source meaningfulness and assesses the degree to which students understand this important concept. Do the endorsements simply “make sense,” and why? 19. Do a Google search on a product that you really like (e.g., an automobile). How many hits do you find? How many of these hits would you actually read? How many of them would impact your attitudes? Why? Answer: Student responses will vary. There are two reasons for this question. One, the question allows students to clearly see how much information is available on products that they may not consider. Also, it helps students to rationalize the types of websites that they consider to be credible and not credible (or, biased and unbiased). 20. Find a website that promotes one of your favorite products or hobbies. In what way does the content of the website influence your attitude toward the product? Does your attitude toward the website influence your attitude toward the brand? Answer: Many different hobbies will likely be reported. Do “cool” websites influence how students feel about the products being advertised? In some cases, they might. In other cases, they won’t. It would be nice to compare responses across different hobbies and see how these relationships work. Perhaps snowboarding websites greatly influence product attitudes, while cooking websites do not. There are many comparisons that can be made with this activity. 21. Develop a survey that follows the ATO approach to attitudes. Focus on fellow students’ attitudes toward three popular restaurants in your town. Distribute the survey to a group of friends. What are your findings? Does the model accurately reflect their attitudes toward the restaurants? Answer: This activity not only provides students with experience in using the ATO approach, but it also allows students to see how the approach is used by others. Students can also comment on the validity of the approach by assessing how well the model predicts overall attitudes toward the restaurants. GROUP ACTIVITY *Based on the opening vignette of the chapter, conduct a discussion about attitudes toward brands. In the opening story, Keiton purchased an Apple iPad. This is a discussion that tends to appeal to both sexes in the class. Visit www.google.com, and copy the images of the top ten brands. (I’ve used Sean John, GE, my university logo, Baskin Robbins, KFC, McDonalds, Tony the Tiger, Betty Crocker, Marlboro, and the Pillsbury Doughboy). Put the images on a PowerPoint slide show, and project them to the class. This activity can also be completed on a sheet of paper. See how many students can name all ten of the top brands. The first student to name all ten correctly can be awarded extra credit points for participation or on an exam. This activity can then prompt a discussion about how we shape attitudes and the role that marketers play. You can refer back to Keiton and his iPad. Why did he buy it? Did his parents own iPads? Did he do research about it? Did he get advice from family and friends? ©2012 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 26 CHAPTER VIDEO CASE To view the video case Targeting and Positioning at Numi Tea, go to the CB companion website login.cengage.com to select this video.3 Numi Tea founders, siblings Ahmed and Reem Rahim, immigrated to the United States when they were young children and grew up in Cleveland, Ohio. Reem became a biomedical engineer, and Ahmed traveled the world as a photographer, settling for a time in Prague where he opened two teashops. In 1999, the two reconnected in Oakland, California, and started Numi Tea in Reem’s apartment. In recent years, demand for organic and ethically produced products has exploded. At the same time, economic influences have driven affluent and natural foods consumers to large discounters, grocery chains, warehouse clubs, and online shops. “In the positioning of our brand we wanted to target a certain type of customer base, from natural health food stores to fine dining and hotels, to universities and coffee shops,” says Ahmed, Numi’s CEO. “But what I’ve been most surprised about in our growth is the mass market consumer.” According to Jennifer Mullin, vice president of marketing for Numi, the average Numi consumer is college educated, female, and buys two to three boxes of tea per month—usually green tea. She also buys organic products whenever possible. Until Mullin joined the team, Numi had assumed its customers fit the same profile as its young staff. Mullin’s findings proved that the company needed to put additional energy toward older customers and moms as well as its target college market. To reach younger consumers, Numi boosts product awareness on college campuses, where people are more inclined to be interested in issues of sustainability, fair-trade, and organics. The big hurdle there is price. Because Numi teas are a premium product, they have a higher price point than conventionally produced teas. And since college students have limited cash, Numi determined that it could access college customers best by getting university food service departments to serve tea as part of prepaid meal plans. The strategy has been a success. Not only do these food service contracts represent huge accounts for Numi, but they also encourage trial by students. Sampling is Numi’s most successful marketing activity for attracting new users, and now students can drink Numi teas essentially for free. For many organics consumers, the most compelling reason for drinking Numi tea is its health benefits. But while Numi is organic, the company rarely advertises this aspect of its business. Some analysts feel that if “organic” and “natural” become mere marketing buzzwords, a lack of trust may arise among consumers, as some products will inevitably fail to live up to marketers’ claims. With this in mind, Numi believes it is best to educate consumers about the product. “We have an in-house PR team that works with editors of women’s magazines to educate consumers on tea and make sure they understand the healthy properties of tea,” says Jennifer. The team always follows up by sampling at Whole Foods stores, or at events targeted toward environmentally conscious customers. While Numi is still fairly new, the company is expanding rapidly in the U.S. and enjoying success overseas as well. Whatever the marketing and PR teams do to promote the tea products—store sampling, environmental events, or partnerships with like-minded companies 3 From Boone & Kurtz. Targeting & Positioning at Numi Tea from Contemporary Marketing 14e, pg. VC-9. Copyright (c) 2010 SouthWestern, a part of Cengage Learning, Inc. Reproduced by permission. www.cengage.com/permissions ©2012 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 27 such as Clif Bar—they always keep an eye on the demographic and psychographic profiles of their consumers. Ask your students: 1. Which of the four common bases for segmenting consumer markets does Numi use to divide up the overall market tea products? Answer: Many marketers use a combination of the four bases for segmenting markets. In the video, Numi is shown to segment the market using the following approaches: Demographic segmentation, including age (Generation X), gender (female), education (college educated), family lifecycle (moms); Psychographic segmentation, including principle-motivated altruists (eco-mom movement, green consumers, and cause-driven consumers); and Product-related segmentation (tea drinkers, and healthful benefits of herbal tea). 2. Would you classify Numi Tea’s marketing strategy as “concentrated”? If so, what are the plusses and minuses of using such a strategy in today’s market? Answer: Numi uses a concentrated marketing strategy. The company offers premium organic tea products to a single market segment: tea lovers. The primary advantage of a concentrated marketing strategy is that a small or highly specialized company can successfully satisfy a niche and expect very little competition from larger companies. The disadvantage of a concentrated marketing strategy is that companies using this approach suffer deeply if other small or specialized competitors enter the market and appeal successfully to the same niche. 3. How does Numi position its tea products against those of its competitors? Answer: Numi is a premium organic fair-traded tea made of organic leaves and high quality ingredients. It is a high price, high quality tea product—not a commodity tea like other teas. Numi teas are sold primarily through fine dining establishments, luxury hotels, natural foods stores, and other premium accounts. PART 2 VIDEO CASE To view the Part 2 video case, go to the CB companion website login.cengage.com to select this video. Shopping for a New Apartment Time: This video is between 5-7 minutes long. Concepts Illustrated in the Video Consumer perception process Comprehension Message source Expectations Consumer motivations ©2012 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 28 Consumer involvement Personality Self-concept Attitudes Synopsis Jim works in the finance industry and is getting ready to start school full-time. He’s working with Linda, a real estate agent and broker to find a new apartment. He has a variety of lifestyle needs in selecting the right apartment such as location to the library, bus line, work, and most importantly aesthetics is a major concern. After some time, Linda and Jim struggle to agree on what’s the right fit for Jim. Jim finally admits that he wasn’t up front about his situation and his company is paying for his living expenses while going back to school. Finally, Linda gets Jim to agree to view the smaller studio apartment. After some deliberation, Jim agrees to move forward with the smaller apartment. Linda points out that her role in this negotiation is to figure out unrealistic expectations from her clients. However, after thirty years in the business, she always asks for the order! Teaching Objectives for the Video Case Understand the concept of comprehension and the factors that influence what gets comprehended Be able to apply the concept of a cognitive “schema,” including exemplars and prototypes, to understand how consumers react to new products Understand consumer motivations Have students explore why lifestyles and psychographics are important in the field of consumer behavior Understand the attitude toward object model Critical Thinking Questions – Suggested Answers 1. What were Jim’s motivations in the video? Answer: Jim’s motivations for a new apartment were based on his age, lifestyle, living within his means, outward appearances, and internal motivations. 2. Define perception. What were Jim’s perceptions about the one bedroom apartment versus the studio apartment? Answer: Perception refers to a consumer’s awareness and interpretation of reality. In this case, perception simply doesn’t always match reality. Jim’s perception about the one bedroom was prestige and that he had made something out of himself though all of his hard work. The perception of the studio apartment was he hadn’t made it yet and was settling after working for 10 years in the financial industry and possessing a good credit record while living within his means. ©2012 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 29 3. Using the general hierarchy of motivation (Maslow’s hierarchy of needs), where would Jim’s new apartment fall on the hierarchy? Explain. Answer: Jim’s new apartment goes beyond physiological, the basic needs for survival including shelter. In the video example, Jim is trying to meet his esteem needs. The esteem needs are classified as being recognized as a person of self-worth. Jim used words such as Hitachi flat screen TV, the leather furniture, and being able to entertain your friends in a nice place that cued the real estate agent as to his needs. 4. Based on Jim’s personality, describe his traits. Would you consider Jim to possess value consciousness, materialism, innovativeness, complaint proneness, and competitiveness? Explain your answer. Answer: Students’ answers will vary depending on how they perceive Jim. Some will see Jim as materialistic. The textbook describes these people who are highly materialistic as consumers who tend to be possessive, non-generous, and envious of other’s possessions. Other students will see that Jim was actually value consciousness by the end of the video. The textbook describes these people as consumers who can expect to pay close attention to the resources that they devote to transactions and to the benefits that they receive. ©2012 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 30