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Attitudes,

Attitude Change and


Consumer Decision-making
Process
Learning Outcomes
 Define attitudes and describe attitude components.

 Describe the functions of attitudes.

 Understand how the hierarchy of effects concept applies to


attitude theory.

 Comprehend the major consumer attitude models.

 Describe attitude change theories and their role in


persuasion.

 Comprehend consumer decision-making process and


learn its application
▮ Define attitudes and describe attitude
components.
Attitudes

Relatively enduring overall evaluations of products,


services, issues, or people
Components of Attitude
▮ ABC approach to attitudes - Attitudes
possess three components
• Affect - Feelings about an object
• Behavior - Overt behavior that
consumers exhibit as well as their
intentions to behave
• Cognitions - Beliefs the consumer has
about the object
▮ Describe the functions of attitudes.
Functions of Attitude
▮ Functional theory of attitudes -
Attitudes perform four functions
• Utilitarian function
• Knowledge function
• Value-expressive function
• Ego-defensive function
Knowledge Function - Example
▮ A consumer refuses to buy from a
particular store because she knows
that other stores provide more offers
and products
• Here, the knowledge function of attitude
is at play
Functions of Consumers Attitudes
▮ Understand how the hierarchy of effects
concept applies to attitude theory.
Hierarchy of Effects
▮ High-involvement hierarchy
• Occurs when a consumer addresses a
significant problem
▮ Low-involvement hierarchy
• Consumers have some basic beliefs
about products without necessarily
having strong feelings toward them
Hierarchy of Effects
▮ Experiential hierarchy
• Purchases are motivated by feelings
▮ Behavioral influence hierarchy
• Some behaviors occur without either
beliefs or affect being strongly formed
beforehand
Hierarchy of Effects
High-involvement Hierarchy - Example
▮ Mohan is in the process of buying a
new house
• This is a high-involvement decision
because it involves risk
THE HIERARCHY MODELS

The AIDA model


The hierarchy-of-effects model
The innovation-adoption model

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Models of the Response Process
Models
Stages AIDA Hierarchy of Innovation Information
model effects model adoption Processing

Attention Awareness Awareness Presentation


Cognitive Attention
Knowledge Comprehension

Interest Liking Interest Yielding


Affective Preference
Desire Conviction Evaluation Retention

Trial
Behavioral
Action Purchase Adoption Behavior
Hierarchy-of-effects model

Unaware Sales

Awareness
Hierarchy-of-effects

Unaware Sales

Knowledge

Awareness
Hierarchy-of-effects

Sales

Unaware

Liking

Knowledge

Awareness
Hierarchy-of-effects

Unaware Preference

Liking

Knowledge

Awareness
Hierarchy-of-effects

Conviction Sales

Preference

Unaware Liking

Knowledge

Awareness
EFFECTIVENESS MEASURES FOR CONSUMER STAGES
Consumer Representative Statement Measures of Effectiveness
Stage

Awareness “I know that the product or brand exists.” Recall


Unaided recall/awareness
Aided recall/awareness
Recognition

Interest “The product or brand is relevant to me” Advertising recall


Attitudes
Brand Equity
Inquires (via website, store or
telephone)

Desire “I would like to buy the product or brand.” Preferences Intentions to buy

Action “I have bought the product or brand.” Trial


Purchase or repurchase
Market Share
Sales or share growth
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An Alternative Response Hierarchy
Topical Involvement
High Low
Learning Model Low Involvement
Model
Perceived product

High
differentiation
Cognitive
Cognitive
Affective
Conative

Dissonance/ Conative
Attribution Model
Low

Conative
Affective Affective
Cognitive
Foote, Cone & Belding Grid
Thinking Feeling

Involvement
High 1 2
Informative Affective
The Thinker The Feeler
Involvement

3 4
Low

Habit Self-
Formation Satisfaction
The Doer The Reactor
Foote, Cone & Belding Grid
Thinking

1
Informative
Involvement The Thinker
Car-computer-house-new products
High

Model: Learn-feel-do (economic?)

Possible implications

???
Foote, Cone & Belding Grid
Feeling

2
Affective
Involvement The Feeler
cosmetics-fashion accessories
Model: Feel-learn -do (psychological?)
High

Possible implications

???
Foote, Cone & Belding Grid
Thinking

3
Habit formation
The Doer
Involvement
Food-household items
Model: Do-learn-feel (responsive?)
Low

Possible implications

???
Foote, Cone & Belding Grid
Feeling

4
Self-satisfaction
Involvement The Reactor
Matchbox, paper clip, Cigarettes, candy
Model: Do-feel-learn (social?)
Low

Possible implications

???
Attitude-Toward-the-Object (ATO) Model
▮ ATO Model - Fishbein model
• Proposes that three key elements be
assessed to understand and predict
consumer behavior
 Consumer beliefs about salient attributes
 Strength of the consumer belief
 Evaluation of the attribute
▮ ATO formula
Attitude-Toward-the-Object Model
Applied to Apartments Complexes
Compensatory Rules

▮ Simple additive
▮ Weighted additive

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Compensatory Rules
Evaluative Criteria Importance BSNL Vodafone Airtel
Weight (I) E EI E EI E EI

Monthly fee 9 6 54 7 63 7 63
Cost per minute 10 8 80 7 70 7 70
Optional vanity Number 8 10 80 4 32 7 58
Caller paid option 8 8 64 4 32 4 32
Remote call – 6 8 48 8 48 5 30
forwarding option
Unique Permanent 5 9 45 5 25 7 35
Number
Personalised PIN 4 6 25 5 20 4 16
55 396 40 290 41 302
Non compensatory Decision Rules
i. Conjunctive Rules: The consumer fixes a cut off point
for each criterion. If a brand falls below the cut off
point on any one criterion, the brand is eliminated
from further consideration. This may result in more
than one alternatives. In such cases, we have to apply
an additional decision rule to arrive at a final selection.
E.g. to accept the first satisfactory brand.
ii. Disjunctive Rule : Cut off point for each attribute should
be fixed. The decision rule then selects the brand that
meets one of the minimum standards/ cut-off points.
Non compensatory Decision Rules

Lexicographic Rule: The consumer first ranks the


attributes in terms of perceived relevance or importance.
Then he compares the various brand alternatives in
terms of the single attribute that is considered most
important.
Elimination-by-aspects Rule (EBA):Minimum cut-off
points are fixed for the attributes. Beginning with the
most important attributes, options get eliminated that
don’t meet the cut-off point. This is then repeated with
the next most important attribute. This is repeated
further till the consumer reaches the final decision.
Heuristics

People are not willing to go the whole hog to


evaluate the alternatives. They want to expend
least effort. That is why, we are called cognitive
misers.
Heuristics is the simple decision making rule we
often use to make inferences or draw conclusions
quickly and easily.
Implications of the ATO Approach
▮ Attitude research is most often
performed on entire market segments
▮ Important for managers to know if
consumers believe that complexes
offer relevant attributes
▮ Researchers are interested in how
attitudes are formed
Attitude–behavior consistency
• Refers to the extent to which a strong relationship exists
between attitudes and actual behavior
Factors That Weaken Attitude-Behavior Relationship

▮ Length of time between attitude


measurement and overt behavior
▮ Specificity with which attitudes are
measured
▮ Strong environmental pressures
▮ Impulse-buying situations
Behavioral Intentions Model (The Theory of Reasoned
Action)
Alternative Approaches to Attitude
▮ Theory of planned action
• Expands upon the behavioral intentions
model by including a perceived control
component
The Theory of Planned Behavior
Attitude towards
act
(Aact)

Subjective Intention Action


norm (SN) I A

Perceived behavioral
control (PBC)

41
Expanding the Attitude Object
▮ Attitude toward the advertisement
• Positive relationship exists between a
consumer’s attitude toward an ad and his
or her attitude toward a particular product
▮ Attitude toward the company
• What consumers know or believe about a
company can influence the attitude they
have toward its product
Attitude tracking
• Refers to the extent to which a company actively
monitors its customers’ attitudes over time
▮ Describe attitude change theories and their
role in persuasion.
Persuasion
▮ Specific attempts to change attitudes
▮ Persuasive techniques
• ATO approach
• Behavioral influence approach
• Changing schema-based affect
• Elaboration likelihood model
• Balance theory approach
• Social judgment theory approach
Attitude-Toward-the-Object Approach
▮ Changing beliefs
▮ Adding beliefs about new attributes
▮ Changing evaluations
Behavioral Influence Approach

▮ Directly changing behaviors without


first attempting to change either
beliefs or feelings
▮ Behavior change can precede belief
and attitude change
Changing Schema-Based Affect
▮ Schema-based affect refers to the
idea that schemas contain affective
and emotional meanings
▮ If the affect found in a schema can be
changed, then attitude toward a brand
or product will change as well
The Elaboration Likelihood Model
Focuses on the way consumers respond to
persuasive messages based on the amount
and nature of elaboration or processing of
information

Routes to attitude change


 Central route to persuasion – ability and motivation to
process a message is high and close attention is paid to
message content

 Peripheral route to persuasion – ability and motivation to


process a message is low and receiver focuses more on
peripheral cues rather than message content
ELABORATION LIKELIHOOD
MODEL (ELM)
They can cognitively know and
understand it.
They can affectively, or emotionally, feel
a response about it.
They can exhibit behavior toward it.

50
Why Two Processing Options ?
• Motivation

• Ability

51
Concepts in Varying Elaboration
• Consumer’s Thought Process

• Involvement with the Purchase

52
THE ELABORATION LIKELIHOOD MODEL
Retain
PERSUASIVE COMMUNICATION Original
Attitude

No
MOTIVATION & ABILITY TO No PERSUASION CUE
PROCESS COMMUNICATION PRESENT?

Yes
HIGH ELABORATION
Favorable Unfavorable Neither or Yes
Thoughts Thoughts Neutral Thoughts
Predominate Predominate
Yes
Enduring Enduring Temporary
Positive Negative Attitude
Attitude Attitude Change
Change Change
PERPHERAL ROUTE
CENTRAL ROUTE
THE CENTRAL ROUTE
• High Elaboration

• Logical, reasoned persuasion

• Cognitively focused

54
THE PERIPHERAL ROUTE
• More affectively based

• Peripheral cues

• Showing (versus arguing) product features,


sometimes

55
The Elaboration Likelihood Model
Balance Theory
Social Judgement Theory
Consumer Decision Process Model
Need Recognition

Search for Information

Pre-purchase Evaluation of Alternatives

Purchase

Consumption

Post-consumption Evaluation

Divestment
Application of CDP

Profiling the Decision-makers


Decision-making Roles and
Specific Action Objectives
Role Action Objective
Initiator Propose brand
Influencer Recommend brand
Decider Choose brand
Purchaser Buy brand
User Use/Consume brand
Behavioral Sequence Model
Major Need Info. Purchase Usage
Stages: Arousal Search Decision
and
Evaluation
Decision Initiator ( ?) Influencer Decider User (?)
Roles Decider (?) Purchaser(?)

Location Home, Media Adv, Pre- Private,


Store,… WOM, … purchase, Social,
POP,… Business, …
Timing t1 t2 t3 t4
Additional Target Audience Var.
Profile Variables Advertising Applications
Media Exposure Media Selection ( dir. matching)
Media Scheduling( dir. matching)
Demographics Media Selection( demo matching)
Message Content (visual & verbal)
Psychographics Media Vehicle Selection
Message Content
Personality Traits Message Content (verbal)
Media Scheduling (repetition)
Personality States Media Vehicle Selection
Message Content ( verbal)
Need Recognition
An individual senses a difference
between what he or she perceives to
be the ideal versus the actual state
of affairs
CDP Model Need Recognition

Internal
Search
Search
Environ-
Exposure mental
Influences
Attention M
Stimuli
E
Comprehension Individual
M Differences
O
Acceptance R
Y
Retention
Search for Information
•Internal search: retrieving know-
ledge from memory

•External search: collecting informa-


tion from peers, family, and the
marketplace
Search for Information

• passive

• active

• ongoing
Search: Sources of Information
Marketer Dominated
Non-Marketer Dominated Stimuli
Search: Sources of Information
Marketer Dominated
- Advertising
- Salespeople
- Infomercials
- Websites
- Point-of-sales materials
Search: Sources of Information
Non-Marketer Dominated Stimuli
- Friends
- Family
- Opinion leaders
- Media
Information Processing
As a consumer is exposed to
information from external search,
they begin to process the stimuli
Information Processing

Exposure

Stimuli: Attention
M
- Marketer E
Dominated
Comprehension M
- Nonmarketer
Dominated
O
Acceptance R
Y
Retention
Search: Information Processing

Exposure

Attention

Comprehension

Acceptance

Retention
Pre-purchase Evaluation of
Alternatives
The process of evaluating
alternatives identified from search,
which leads to a product or brand
selection most likely to satisfy the
consumer
Pre-purchase Evaluation of
Alternatives
Can use new or preexisting
evaluations stored in memory
Evaluative criteria: standards and
specifications used to compare
different products and brands
salient or determinant
Pre-purchase Evaluation of
Alternatives
Salient attributes such as price and
reliability are important to the
consumer
Determinant attributes such as a
interior of flat and style usually
determine which brand or store
consumers choose
Evaluation Process:

Evaluation criteria
Evaluation of Decision
Importance of the criteria
alternatives

Decision Rules
Evaluation Criteria:
Evaluative criteria are product features or attributes
associated with either benefits desired by consumers
or costs they incur.

Criteria can be : tangible – cost, performance, features


: Intangible – style, task, prestige, brand
image

Importance of Criteria
CONSIDERATION SET

Evoked Set:
Inept Set:
Inert Set: All Brands

Known Brands Unknown Brands

Evoked Set Inept Set Inert Set


(acceptable) (unacceptable) (indifferent)

Brands not
Purchased
purchased
Brands
Consumer Decision Process Model
Need Recognition

Search for Information

Pre-purchase Evaluation of Alternatives

Purchase
CDP Model Need Recognition

Internal
Search
Search
Environ-
Exposure Pre-purchase
mental
Evaluation of
Influences
Attention Alternatives
Stimuli M
E
Comprehension Purchase Individual
M Differences
O
Acceptance R
Y
Retention
Purchase
Acquisition of the product that
involves choosing a specific
retailer, and in-store choices
Purchase
Acquisition of the product that involves
choosing a specific retailer, and in-store
choices

Purchase intention can change


during the purchase stage—it can
be influenced by factors such as
in-store promotions, discounts,
salespeople, failure to find the
product, or lack of financial
resources
Consumer Decision Process Model
Need Recognition

Search for Information

Pre-purchase Evaluation of Alternatives

Purchase

Consumption
Consumption
The process of using the product or
service purchased
Consumption can either occur
immediately or be delayed
Consumption
The process of using the product or
service purchased
Consumption can either occur
immediately or be delayed
How consumers use a product
affects satisfaction with product
How carefully consumers use or
maintain a product also determines
how long it will last before another
purchase is needed
Consumer Decision Process Model
Need Recognition

Search for Information

Pre-purchase Evaluation of Alternatives

Purchase

Consumption

Post-consumption Evaluation
CDP Model Need Recognition
Internal
Search
Search
Environ-
Exposure Pre-purchase
mental
Evaluation of
Influences
Attention Alternatives
Stimuli M
E
Comprehension Purchase Individual
M Differences
O
Acceptance Consumption
R
Y
Retention Post-consumption
Evaluation

External
Dissatisfaction Satisfaction
Search
Post-consumption Evaluation
Consumption is an important
determinant of satisfaction
Satisfaction: when consumers’
expectations are matched by
perceived performance
Dissatisfaction: when experiences
and performance fall short of
expectations
Post-Consumption Evaluation
Cognitive dissonance: questioning
the purchase decision (post-
purchase regret)
Usually, the higher the price, the
higher the level of cognitive
dissonance
Emotion strongly affects the
evaluation of a product or
transaction
Differences in Extensive, Limited, and Routinized Problem – Solving Models

DECISION STAGE
WHEN NEED INFORMATION EVALUATIO PURCHASE POST –
PRODECT WHEN AROUSAL SEARCH N BEHAVIOR DECISION PURCHASE
CLASS IS: BRAND IS EVALUATION

EXTENSIVE
CAREFUL
PROBLEM NEW NEW EXTENSIVE
SOLVING

LIMITED
FAMILIAR NEW LIMITED
PROBLEM CASUAL
SOLVING

ROUTINIZED NONE
FAMILIAR BY
RESPONSE FAMILIAR
EXCEPTION

AWARENESS INTEREST DESIRE ACTION


KNOW FEEL DO

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