P a g e | 1 Chapter 7 : Attitudes and Persuasion The power of attitudes Attitude is a lasting, general evaluation of people, objects, advertisements, or issues (Attitude object (AO). It helps to determine a number of preferences and actions. Function of Attitude - Utilitarian Function : Person forms a product attitude because of its objective benefits. - Value-expressive Function : Express consumer’s central values or self concept - Ego-defensive Function : Product ourselves either from external threats or internal feeling. - Knowledge Function : Attitudes are formed because of need for order, structure, or meaning. Attitude toward the advertisement We form attitudes toward objects other than the product that can influence our product selections. We often form product attitudes from its ads Ad: attitude toward advertiser + evaluations of ad execution + ad evoked mood + ad arousal effects on consumer + viewing context Attitude Commitment INTERNALIZATION Highest level: deep-seeded attitudes become part of consumer’s value system IDENTIFICATION Mid-level: attitudes formed in order to conform to another person or group COMPLIANCE Lowest level: consumer forms attitude because it gains rewards or avoids punishments Consistency Principle We value/seek harmony among thoughts, feelings, and behaviors We will change components to make them consistent Relates to the theory of cognitive dissonance – we take action to resolve dissonance when our attitudes and behaviors are inconsistent Self Perception Theory FOOT-IN-THE-DOOR TECHNIQUE Consumer is more likely to comply with a request if he has first agreed to comply with a smaller request MKT3530CONSUMER BEHAVIOR WANANONG K. 5313843 P a g e | 2 LOW-BALL TECHNIQUE Person is asked for a small favor and is informed after agreeing to it that it will be very costly. DOOR-IN-THE-FACE TECHNIQUE Person is first asked to do something extreme (which he refuses), then asked to do something smaller. Social Judgement Theory We assimilate new information about attitude objects in light of what we already know/feel Initial attitude = frame of reference Latitudes of acceptance and rejection Assimilation effects Contrast effects Example: “Choosy mothers choose Jif Peanut Butter” Balance Theory Considers how a person might perceive relations among different attitude objects and how he might alter attitudes to maintain consistency Triad attitude structures: Person Perception of attitude object Perception of other person/object Multiattribute Attitude Models Consumer’s attitudes toward an attitude object depend on beliefs she has about object attributes Three elements of multiattribute Attributes of Ao Beliefs about Ao Importance weights The Fishbein Model - Salient Beliefs - Object-Attribute Linkages - Evaluation Marketing Applications of the Multiattribute Model - Capitalize on Relative Advantage MKT3530CONSUMER BEHAVIOR WANANONG K. 5313843 P a g e | 3 - Strengthen Perceived Linkages - Add a New Attribute - Influence Competitor’s Ratings The Extended Fishbein Model: The Theory of Reasoned Action Intentions versus behavior: measure behavioral intentions, not just intentions Social pressure: acknowledge the power of other people in purchasing decision Attitude toward buying: measure attitude toward the act of buying, not just the product Theory of Trying How Do Marketers Change Attitudes? - Reciprocity - Liking - Scarcity - Authority - Consistency - Consensus Tactical Communications Options Who will be source of message? How should message be constructed? What media will transmit message? What target market characteristics will influence ad’s acceptance? Traditional Communication Model An Updated Communication Model MKT3530CONSUMER BEHAVIOR WANANONG K. 5313843 P a g e | 4 New Message Formats M-commerce - marketers promote goods and services via wireless devices New social media platforms Blogging Video blogging (vlogging) Podcasting Tweeting Virtual worlds Widgets The Source Source effects mean the same words by different people can have very different meanings A “source” may be chosen due to expertise, fame, attractiveness, or similarity What makes a good source? Source credibility: a source’s perceived expertise, objectivity, or trustworthiness Source attractiveness: social value Decisions to Make About the Message Should we use pictures or words? How often should message be repeated? Should it draw an explicit conclusion? Should it show both sides of argument? MKT3530CONSUMER BEHAVIOR WANANONG K. 5313843 P a g e | 5 Should it explicitly compare product to competitors? Should it arouse emotions? Should it be concrete or based on imagery? The Message Positive Effects Showing convenience of use Showing new product/improved features Casting background (i.e., people are incidental to message) Indirect comparison to other products Negative Effects Extensive information on components, ingredients, nutrition Outdoor setting (message gets lost) Large number of onscreen characters Graphic displays How Do We Structure Arguments? One-sided: supportive arguments Two-sided: both positive and negative information Refutational argument: negative issue is raised, then dismissed Positive attributes should refute presented negative attributes Effective with well-educated and not-yet-loyal audiences Comparative Advertising Comparative advertising: message compares two+ recognizable brands on specific attributes “Unlike McDonalds, all of Arby's chicken sandwiches are made with 100% allnatural chicken” Negative outcomes include source derogation Types of Message Appeals - Emotional versus Rational Appeals - Sex Appeals - Humorous Appeals - Fear Appeals Message As Art Form Advertisers use literary elements to communicate benefits and meaning Allegory: story about an abstract concept personified in a fictional character MKT3530CONSUMER BEHAVIOR WANANONG K. 5313843 P a g e | 6 Metaphor: two dissimilar objects in a close relationship (“A is B”) Simile: compares two objects (“A is like B”) Resonance: play on words with pictures Examples of Advertising Resonance Product Headline Visual Embassy Suites “This Year, We’re Unwrapping Suites by the Dozen” Chocolate kisses with hotel names underneath each Toyota auto parts “Out Lifetime Guarantee May Come as a Shock” Man holding a shock absorber Bucks filter cigarettes “Herd of These?” Cigarette pack with a picture of a stag Bounce fabric softener “Is There Something Creeping Up Woman’s dress bunched up on Behind You?” her back due to static Pepsi “This Year, Hit the Beach Topless” Pepsi bottle cap lying on the sand ASICS athletic shoes “We Believe Women Should Be Running the Country” Woman jogging in a rural setting Forms of Story Presentation Lecture: speech in which the source speaks directly to the audience Attempts to persuade Cognitive responses may occur Drama: story that draws viewers into the action Characters indirectly address the audience Interact with each other in an imaginary setting MKT3530CONSUMER BEHAVIOR WANANONG K. 5313843 P a g e | 7 Chapter Summary Attitudes are very powerful, and they are formed in several ways. People try to maintain consistency among their attitudinal components and their attitudes and behaviors. The communications model includes several important components which can be influenced by marketers to enhance the persuasiveness of the message. MKT3530CONSUMER BEHAVIOR WANANONG K. 5313843 P a g e | 8 Chapter 10 : Buying and Disposing Issues Related to Purchase and Postpurchase Activities A consumer’s choices are affected by many personal factors…and the sale doesn’t end at the time of purchase Five Perspectives on Time Time is a _____. Pressure cooker Map Mirror River Feast Temporal Factors: The Experience of Time Culture and the experience of time Linear separable time Procedural time Circular/cyclic time Queuing theory Waiting for product = good quality Too much waiting = negative feelings Reasons for Shopping Social experiences Sharing of common interests Interpersonal attraction Instant status The thrill of the hunt E-Commerce: Clicks versus Bricks Benefits: good customer service, more options, more convenient Limitations: lack of security, fraud, actual shopping experience, shipping charges MKT3530CONSUMER BEHAVIOR WANANONG K. 5313843 P a g e | 9 Retailing as Theater Landscape themes Marketscape themes Cyberspace themes Mindscape themes Store Image Store image: personality of the store Location + merchandise suitability + knowledge/congeniality of sales staff Other intangible factors affecting overall store evaluation: Interior design Types of patrons Return policies Credit availability In-Store Decision Making Spontaneous shopping Unplanned buying Impulse buying Point-of-purchase (POP) stimuli Salesperson influence Point-of-Purchase Stimuli • POP: can be an elaborate product display or demonstration, a coupon-dispensing machine, or even someone giving out free samples – Wal-Mart’s own in-store TV Network – Timex watch sitting in bottom of aquarium – Tower Records music sampler Postpurchase Satisfaction Postpurchase satisfaction or dissatisfaction is determined by attitude about a product after purchase Marketers constantly on lookout for sources of consumer dissatisfaction United Airlines’ “United Rising” campaign MKT3530CONSUMER BEHAVIOR WANANONG K. 5313843 P a g e | 10 Perceptions of Product Quality • We want quality and value in our products! • Product quality = competitive advantage • Cues for quality and reduced risk: – Brand name – Price – Advertising campaign expenditures – Product warranties – Follow-up letters from company Quality Is What We Expect It to Be Expectancy Disconfirmation Model Marketers must manage expectations Don’t overpromise When product fails, reassure customers with honesty Psychological Time • Fluidity of time (subjective experience) • Time categories relevant to marketers – Good times for ads: occasion/leisure times and time to kill – Bad times for ads: flow and deadline times • Five time perspective metaphors – Time is a pressure cooker – Time is a map – Time is a mirror – Time is a river – Time is a feast • Experience of time results from culture – Linear separable time – Procedural time – Circular/cyclic time • Queuing theory: mathematical study of waiting lines – Waiting for product = good quality – Too much waiting = negative feelings – Marketers use “tricks” to minimize psychological waiting time Antecedent States • Mood/physiological condition influences what we buy and how we evaluate product – Stress impairs info-processing and problem solving MKT3530CONSUMER BEHAVIOR WANANONG K. 5313843 P a g e | 11 • Pleasure and arousal • Mood = combination of pleasure and arousal – Happiness = high in pleasantness and moderate in arousal – Mood biases judgments of products/services – Moods are affected by store design, music, TV programs Acting on Dissatisfaction Voice response: appeal to retailer directly Private response: express dissatisfaction to friends or boycott store Third-party response: take legal action Product Disposal Strong product attachment = painful disposal process Ease of product disposal is now a key product attribute to consumers Disposal options Divesting of Unwanted Items - Iconic Transfer Ritual - Transition Place Ritual - Ritual Cleansing Chapter Summary Many factors beyond the qualities of a product influence purchase decisions. People can be influenced by store image, point-of-purchase stimuli, salespeople, and more as they make product choices. Consumers evaluate their choice after making it and this evaluation affects future choices. Disposing of products is a challenge. MKT3530CONSUMER BEHAVIOR WANANONG K. 5313843 P a g e | 12 Chapter 11 : Group GROUP: A group may be defined as two or more people who interact to accomplish either individual or mutual goals. It types are as follows: 1. Intimate Group: Two or more persons who do any task or work together whether they are interested or not. 2. Formal Group: A group of large no. of people who are learning or performing a same task because of their own interest. 3. One-Sided Grouping: It is a type of group in which an individual consumer observes the appearance or actions of others, who unknowingly serve as consumption-related role models. 4. Membership Group: It is a type of group which is classified by a membership status. It is a group to which a person either belongs or would qualify for membership. 5. Symbolic Group: It is type of group in which an individual is not likely to receive membership, despite acting like a member by adopting the group's values, attitudes, and behavior. Brand Communities and Consumer Tribes A group of consumers who share a set of social relationships based upon usage or interest in a product Consumer tribes share emotions, moral beliefs, styles of life, and affiliated product Brandfests celebrated by community Membership versus Aspirational Reference Groups Membership reference groups People the consumer actually knows Advertisers use “ordinary people” Aspirational reference groups People the consumer doesn’t know but admire Advertisers use celebrity spokespeople Factors Predicting Reference Group Membership - Propinquity - Mere exposure MKT3530CONSUMER BEHAVIOR WANANONG K. 5313843 P a g e | 13 - Group cohesiveness Positive versus Negative Reference Groups Avoidance groups: motivation to distance oneself from other people/groups Antibrand communities: coalesce around a celebrity, store, or brand—but in this case they’re united by their disdain for it Consumers Do It in Groups Deindividuation: individual identities become submerged within a group Social loafing: people don’t devote as much to a task when their contribution is part of a larger group Risky shift: group members show a greater willingness to consider riskier alternatives following group discussion than if members made their own decisions Factors Influencing Conformity Cultural pressures Fear of deviance Commitment Group characteristics unanimity size expertise Susceptibility to interpersonal influence Opinion Leadership Opinion leaders influence others’ attitudes and behaviors Experts Unbiased evaluation Socially active Similar to the consumer Among the first to buy Opinion Leaders Is there a generalized opinion leader whose recommendations we seek for all types of purchases? Experts may be monomorphic or polymorphic MKT3530CONSUMER BEHAVIOR WANANONG K. 5313843 P a g e | 14 The Market Maven Market maven: actively involved in transmitting marketplace information of all types Just into shopping and aware of what’s happening in the marketplace Overall knowledge of how and where to get products The Surrogate Consumer Surrogate consumer: a marketing intermediary hired to provide input into purchase decisions Interior decorators, stockbrokers, professional shoppers, college consultants Consumer relinquishes control over decision-making functions Marketers should not overlook influence of surrogates! How Do We Find Opinion Leaders? The self-designating method Simply ask individuals whether they consider themselves to be opinion leaders Easy to apply to large group of potential opinion leaders Inflation or unawareness of own importance/influence Key informant method Key informants identify opinion leaders Sociometric Methods Sociometric methods: trace communication patterns among group members Systematic map of group interactions Most precise method of identifying product-information sources, but is very difficult/expensive to implement Network analysis Referral behavior/network, tie strength Bridging function, strength of weak ties Word-of-Mouth Communication MKT3530CONSUMER BEHAVIOR WANANONG K. 5313843 P a g e | 15 WOM is product information transmitted by individuals to individuals More reliable form of marketing Social pressure to conform Influences two-thirds of all sales We rely upon WOM in later stages of product adoption Powerful when we are unfamiliar with product category Negative WOM and Power of Rumors We weigh negative WOM more heavily than we do positive comments! Negative WOM is easy to spread, especially online Determined detractors Information/rumor distortion There are 3 themes to complaint Web sites Injustice Identity Agency Cutting-Edge WOM Influences - Social Networking - Crowd Power - Guerilla Marketing - Viral Marketing MKT3530CONSUMER BEHAVIOR WANANONG K. 5313843 P a g e | 16 Chapter 12 : Income and Social Class Discretionary Income The money available to a household over and above what it requires to have a comfortable standard of living How we spend varies based in part on our attitudes toward money Tightwads Spendthrifts Consumer Confidence Behavioral economics Consumer confidence Factors affecting the overall savings rate: Pessimism/optimism about personal circumstances World events Cultural differences in attitudes toward savings Social Class Structure “Haves” versus “have-nots” Social class is determined by income, family background, and occupation Universal pecking order: relative standing in society Social class affects access to resources Social Mobility - Horizontal Mobility - Upward Mobility - Downward Mobility Components of Social Class Occupational prestige Is stable over time and similar across cultures Single best indicator of social class Income Wealth not distributed evenly across classes (top fifth controls 75% of all assets) How money is spent is more influential on class than income MKT3530CONSUMER BEHAVIOR WANANONG K. 5313843 P a g e | 17 Predicting Consumer Behavior Whether social class or income is a better predictor of a consumer’s behavior depends on the type of product: Social class is better predictor of lower to moderately priced symbolic purchases Income is better predictor of major nonstatus/nonsymbolic expenditures Need both social class and income to predict expensive, symbolic products Status Symbols What matters is having more wealth/fame than others Status-seeking: motivation to obtain products that will let others know that you have “made it” Invidious distinctions: the use of status symbols to inspire envy in others through display of wealth or power. Conspicuous consumption: the purchase and prominent display of luxury goods to provide evidence of a consumer’s ability to afford them. MKT3530CONSUMER BEHAVIOR WANANONG K. 5313843 P a g e | 18 Chapter 13 : Ethnic, Racial, and Religious subcultures Subcultures, Microcultures, and Consumer Identity Consumers’ lifestyles are affected by group membership within the society-at-large Subcultures of age, race/ethnicity, place of residence Microcultures share a strong identification with an activity or art form Have own unique set of norms, vocabulary, and product insignias Ethnic and Racial Subcultures An ethnic subculture is a self-perpetuating group of consumers who share common cultural or genetic ties where both its members and others recognize it as a distinct category. In countries like Japan, ethnicity is synonymous with the dominant culture because most citizens claim the same cultural ties. Ethnicity and Marketing Strategies Subcultural memberships help shape people’s needs/wants Minorities find an advertising spokesperson from their own group more trustworthy Ethnic subculture affects level/type of media exposure, food/apparel preferences, political behavior, leisure activities, willingness to try new products Is Ethnicity a Moving Target? Defining/targeting an ethnic group is not always so easy (“melting pot” society) Deethnicization occurs when a product we associate with a specific ethnic group detaches itself from its roots and appeals to other groups as well Example: bagels Religious Subcultures and Product Demand Religious themes can spill over into everyday consumption “Cult products” Marketing opportunity among religious subcultures due to dress and food requirements MKT3530CONSUMER BEHAVIOR WANANONG K. 5313843 P a g e | 19 Chapter 14 : Age Subcultures Age and Consumer Identity A consumer’s age exerts a significant influence on his/her identity Age cohort (“my generation”) Marketers target specific age cohorts Feelings of nostalgia Our possessions let us identify with others of a certain age/life stage Generational Categories The Interbellum Generation The Silent Generation The War Baby Generation The Baby Boom Generation Generation X Generation Y Generation Z The Youth Market “Teenage” first used to describe youth generation in 1950s Youth market often represents rebellion $100 billion in spending power Getting to Know Gen Y “Echo Boomers” = “millennials” = Gen Yers Make up one-third of U.S. population Spend $170 billion a year First to grow up with computers in their homes, in a 500-channel TV universe Tweens Children ages 8 to 14 Spend $14 billion a year on clothes, CDs, movies (“feel-good” products) Exhibit characteristics of both children and adolescents Victoria Secret’s Pink lingerie line for younger girls (“Team Pink”) MKT3530CONSUMER BEHAVIOR WANANONG K. 5313843 P a g e | 20 Big (Wo)Man on Campus College market is attractive Many students have extra cash/free time Undeveloped brand loyalty College students are hard to reach via conventional media Online advertising is very effective Sampler boxes Wall media Spring break beach promotions Researching the Youth Market Research firms come up with innovative ways to tap teen desires Coolhunters: kids in major markets who roam urban streets and report back on cutting-edge trends Teens as “consumers-in-training” Brand loyalty develops during adolescence Teen influence of family purchase decisions Baby Busters: “Generation X” Consumers born between 1966 and 1976 Today’s Gen Xer is both values-oriented and value-oriented Desire stable families, save portion of income, and view home as expression of individuality Baby Boomers Consumers born between 1946 and 1965 Active and physically fit Currently in peak earning years Food, apparel, and retirement programs “Midlife crisis” products MKT3530CONSUMER BEHAVIOR WANANONG K. 5313843 P a g e | 21 The Gray Market Traditionally neglected by marketers People are now living longer/healthier lives “Zoomers” = active, interested in life, enthusiastic consumers with buying power Fastest growing group of Internet users Perceived Age: You’re Only as Old as You Feel Age is more a state of mind than of body Perceived age: how old a person feels as opposed to his or her chronological age “Feel-age” “Look-age” The older we get, the younger we feel relative to actual age Values of Older Adults Autonomy: want to be self-sufficient Connectedness: value bonds with friends and family Altruism: want to give something back to the world Segmenting Seniors Segmented by: Specific ages (50s, 60s, 70s) Marital status Health and outlook on life Social aging theories: try to understand how society assigns people to different roles across life span MKT3530CONSUMER BEHAVIOR WANANONG K. 5313843 P a g e | 22 MKT3530CONSUMER BEHAVIOR WANANONG K. 5313843 P a g e | 23 Chapter 16 : Global Consumer Culture Where Does Culture Come From? Influence of inner-city teens Hip-hop/black urban culture Outsider heroes, anti-oppression messages, and alienation of blacks “Flavor” on the streets The Movement of Meaning MKT3530CONSUMER BEHAVIOR WANANONG K. 5313843 P a g e | 24 Cultural Production Process Culture Production System A culture production system is the set of individuals and organizations that create and market a cultural product It has three major subsystems Creative Managerial Communications Cultural Gatekeepers Cultural gatekeepers are responsible for filtering the overflow of information and materials intended for customers Tastemakers Throughput sector MKT3530CONSUMER BEHAVIOR WANANONG K. 5313843 P a g e | 25 High Culture and Popular Culture An art product is an object we admire for its beauty and our emotional response A craft product is admired because of the beauty with which it forms a function Mass culture creates products for a mass market Cultural Formulae in Public Art Forms Art Form/Genre Western Family Sitcom Time 1800s Anytime Location Edge of civilization Suburbs Protagonist Cowboy Father Heroine Schoolmarm Mother Villain Outlaws Boss, neighbor Secondary charactersTown folk Kids, dogs Plot Restore law and orderSolve problem Theme Justice Chaos and confusion Costume Cowboy hat, boots Regular clothes Locomotion Horse Station wagon, SUV Weaponry Rifle Insults Reality Engineering Many consumer environments have images/characters spawned by marketing campaigns or are “retreads” Marketers use pop culture as promotional vehicles “New vintage” (e.g., “used jeans”) Elements used are both sensory and spatial Product Placement and Branded Entertainment Insertion of specific products and use of brand names in movie/TV scripts Directors incorporate branded props for realism Is product placement a positive or negative when it comes to consumer decisionmaking? MKT3530CONSUMER BEHAVIOR WANANONG K. 5313843 P a g e | 26 Advergaming Advergaming refers to online games merged with interactive advertisements Advertisers gain many benefits with advergames Plinking is the act of embedding a product in a video The Diffusion of Innovations Innovation: any product that consumers perceive to be new New manufacturing technique New product variation New way to deliver product New way to package product Diffusion of innovation Successful innovations spread through the population at various rates Types of Adopters MKT3530CONSUMER BEHAVIOR WANANONG K. 5313843 P a g e | 27 Behavioral Demands of Innovations Three major types of innovations (amount of disruption/change they bring to our lives): Continuous innovation Evolutionary rather than revolutionary Dynamically continuous innovation More pronounced change to existing product Discontinuous innovation Creates major changes in the way we live The Fashion System The fashion system includes all those people and organizations involved in creating symbolic meanings and transferring these meanings to cultural goods Fashion is code Fashion is context-dependent Fashion is undercoded Behavioral Science Perspective and Models of Fashion Psychological Economic Sociological Medical Motives and Psychological Models of Fashion Conformity Desire for variety seeking Need to express personal creativity Sexual attraction Fashion Life Cycle Example Introduction stage: small number of music innovators hear a song Acceptance stage: song enjoys increased visibility Regression stage: song reaches stage of social saturation as it becomes overplayed MKT3530CONSUMER BEHAVIOR WANANONG K. 5313843 P a g e | 28 How Might We Know if a Trend is a Fad? Does it fit with basic lifestyle changes? Are there benefits? Can we personalize it? Is it a trend or a side effect? Is it a carryover effect? Who adopted the change? Cultural Differences and Marketing People around the world develop their own unique preferences Marketers must be aware of a culture’s norms and manage the relationship between brand and culture strategically Think Globally, Act Locally Adopt a standardized strategy Adopt a localized strategy Consumers and Global Brands - Global citizens - Global dreamers - Antiglobals - Global agnostics Emerging Consumer Cultures in Transitional Economies Creolization occurs when foreign influences integrate with local meanings Peruvian boys carry rocks painted like radios Chivas Regal wrappers on drums in highland Papua New Guinea Japanese use Western words for anything new and exciting “I feel Coke and sound special” MKT3530CONSUMER BEHAVIOR WANANONG K. 5313843 P a g e | 29 MKT3530CONSUMER BEHAVIOR WANANONG K. 5313843