Attitudes, Intentions, and Behavior MKT 750 Dr. West Agenda Understanding attitudes & behavior Building brands Preparing for Tivo case Answer Key # Yellow Green # Yellow Green 1 C E 11 any any 2 D A 12 B C 3 E A 13 B E 4 E E 14 E C 5 E A 15 B or E B 6 B E 16 E B or D 7 A C 17 B D 8 E E 18 B B 9 B or D C or D 19 B A 10 D C 20 A C Overview Models & Managerial Implications Need/Opportunity Recognition Search Awareness & Availability Evaluation Choice Decision Rules Post Choice Satisfaction & Retention Overview Models & Managerial Implications Prior Need/Opportunity Beliefs Recognition Search Fishbein Attitude Model Awareness & Availability Evaluation Choice Decision Rules Post Choice Satisfaction & Retention What’s to come? How knowledge is acquired and used Attitude Formation & Change Information Processing Memory (storage & retrieval) Managerial Implications Brand building & maintenance Communication (advertising) Predicting Behavior Attitudes Preferences Intentions Social Norms Behavior Consumer Attitudes Attitudes: represent what we like and dislike Preferences: represent attitudes toward one object in relation to another Consumer Attitudes Just because consumers prefer brand X doesn’t mean they will necessarily buy brand X Attitude toward the object: How do you feel about Dell computers? Coding Options: (-3, -2, -1, 0,1, 2, 3) Dislike very much Like very much Unfavorabl e Attitude Neutral Point Favorable Attitude Measuring Attitudes Cognitive Component: Measuring Beliefs about Specific Attributes Using the Semantic Differential Scale Diet Coke Strong taste —— —— —— —— —— —— —— Mild taste Low priced —— —— —— —— —— —— —— High priced Caffeine free —— —— —— —— —— —— —— High in caffeine Distinctive in taste —— —— —— —— —— —— —— Similar in taste to most Measuring Attitudes Affective Component (Measuring Feelings about Specific Attributes Using Likert Scales) Neither Agree Strongly nor Agree Agree Disagree Disagree Strongly Disagree I like the taste of Diet Coke. —— —— —— —— —— Diet Coke is overpriced. —— —— —— —— —— Caffeine is bad for your health. —— —— —— —— —— I like Diet Coke. —— —— —— —— —— Measuring Attitudes Behavioral Component (Measuring Actions or Intended Actions) The last soft drink I consumed was a ___________________. I usually drink________________soft drinks a week. What is the likelihood you will buy Diet Coke the next time you purchase a soft drink? Definitely will buy Probably will buy Might buy Probably will not buy Definitely will not buy Attitude Objects: Ao Product Company Retailer Product attributes Brand associations (logo, symbol) Advertising and spokespersons Antecedents Consequences Acompany Abrand Aproduct Astore Aad Aattributes Intention Behavior Elements of Attitudes Beliefs are subjective judgments about the relationship between two or more things e.g. Product Quality, Reliability, Nutritional Value Beliefs about a product’s attributes and their evaluation determine the favorability of one’s attitude toward the product Theory of Reasoned Action: A Multi-Attribute Model (ei) (bi) Evaluation of Product Attributes Brand Beliefs (Ao) (BI) Overall Product Evaluation Intention to Buy (B) Behavior Social Norms n Ao = S bi ei + SN i =1 (Fishbein & Azjen) Running Shoes Beliefs (bi) Attribute Brand Brand Brand Evaluation (ei) A B C Shock absorbent +2 +2 +1 -1 Price less than $50 -1 -3 -1 +3 Durability +3 +3 +1 -1 Comfort +3 +2 +3 +1 Desired color +1 +1 +3 +3 Arch support +2 +3 +1 -2 Total score Running Shoes Beliefs (bi) Attribute Brand Brand Brand Evaluation (ei) A B C Durability +3 +3 (9) +1 (3) -1 (-3) Comfort +3 +2 (6) +3 (9) +1 (3) Shock absorbent +2 +2 (4) +1 (2) -1 (-2) Arch support +2 +3 (6) +1 (2) -2 (-4) Desired color +1 +1 (1) +3 (3) +3 (3) Price less than $50 -1 -3 (3) -1 (3) +3 (-3) Total score +29 +22 -6 Stimulus Importance-Performance Grid Attribute Our Importance Performance Competitor’s Performance Simultaneous Result Poor Neglected Opportunity POOR Good Competitive Disadvantage GOOD Poor Competitive Advantage Good Head-to-head competition Poor Null Opportunity POOR Good False Alarm GOOD Poor False Advantage Good False Competition HIGH LOW Benefits of Multi-attribute Model Diagnostic power-- examines WHY consumers like/dislike your product Segmentation based on attribute importance Competitive analysis Forecasting sales, new product development, persuasion strategies Implications for Attitude Change Changing beliefs (bi) Cadillac (Heritage Reborn) Changing attribute importance (ei) Airbags & Safety Antibacterial soap Implications for Attitude Change Add a new attribute Carbohydrates in beer? Influencing Consumer Attitudes: Beliefs (bi) are easier to change than desired benefits (ei). Attitudes are easier to change when Involvement with the product category is low because attitudes are held with less confidence and commitment They are based on subjective or second hand information rather than personal experience The rest of the story… What’s missing from Fishbein’s “Theory of Reasoned Action” Attitudes = F(Beliefs, Evaluations, Social Norms) Where do our attitudes come from? Friends and family Personal experience Observation Media & Advertising Product Life Cycle Decelerating Growth: Sales new segments, brand extensions Accelerating Growth: control costs, increase efficiency, monitor competitors and trends Profit awareness and induce trial harvest or rejuvenate Maturity: build share, WOM Emergence: create Decline: Time Product Adoption Process 13½% Early Adopters 2½% Innovators 34% 34% 16% Early Majority Late Majority Laggards Types of Consumers Factors Affecting Adoption: The ACCORD Model Advantage – the degree to which the product appears superior Compatibility – matches the values and experiences of users Complexity – ease of understanding and usage Observability – the benefits of use observable and describable to others Riskiness – negative outcomes can be foreseen Divisibility – can the product be tried on a limited basis Launching TiVo Analyze the situation from the consumer standpoint. What is TiVo? What factors facilitate or inhibit TiVo’s adoption? Who is TiVo best suited for? Segmentation and targeting Launching TiVo Analyze the situation from the networks, the advertisers, and the cable/satellite companies perspective: What do these stakeholders want TiVo to be? Launching TiVo Think about the competition What are Microsoft’s potential strengths and weaknesses in this market? Evaluate Tivo’s action plan as given at the end of the case? Assignment Read Chapter 7 Write-up the Tivo case