Consumer Behaviour Chapter 6 PDF

Introduction (A TU DE X Figure 6.1. 1 Winston Church...

Introduction (A TU DE X Figure 6.1. 1 Winston Churchill once said, "Attitude is a little thing that makes a big difference." As far as understanding consumer behavior goes, he was absolutely right. Attitudes are widely regarded as one of the most important drivers of purchase behavior, so it's no surprise that savvy marketers strive to understand and influence their target customers' attitudes. In the interconnected landscape in which our consumers live, work, and play, this includes not only understanding and influencing attitudes toward marketers' own products, but also attitudes toward the category, competitors' products, influencers, and any other elements surrounding a purchase decision. What exactly are attitudes? Attitudes reflect either favorable or unfavorable evaluations of an "attitude object." In the context of marketing and consumer behavior, an "object" can be a product, brand, service, price, package, advertisement, or any other aspect of consumption. Ultimately, attitudes motivate consumers to either buy or not buy particular products or brands. Understanding attitudes begins with understanding the consumer behavior theory that underlies attitude formation and change. While psychologists differ in their findings regarding attitudes, there is general alignment on the following : Consumers learn attitudes from a variety of sources rang ing from direct experience to word of mouth to marketing. A consumer's personality is one of the most critical drivers of attitudes. Given the ind ividual nature of personality, attitudes, too, are highly ind ividualistic and differ greatly from one consumer to the next. Though attitudes are consistent with behaviors, they are often situational. For example, while we may not have a positive attitude toward our local hospital system, in times of dire need, we may choose to seek treatment at that hospital if the situation warrants it. Section 1: Three Models of Attitudes Marketers seek to understand attitudes so that they can persuade consumers to form positive attitudes toward their products and services. Fortunately, as marketers, we're not starting from scratch; we lean on several models developed by psychologists to understand how consumers' attitudes are formed. The three models we'll study in this chapter are The elaboration likelihood model (ELM) The tri-component attitude model The multi-attribute model The Elaboration Likelihood Model (ELM) I ELABORATION LIKELIHOOD MODEL I I Elaboration Low High ! ! Route Peripheral Central ! ! Processing Not Careful Careful ! ! Attitude Change Depends on cues Depends on information Figure 6. 1. 1 The elaboration likelihood model (ELM), developed by John Cacioppo and Richard Petty, seeks to explain how humans process stimuli (for example, marketing materials) and how doing so may lead to effective attitude change. The ELM posits that people react to stimuli in one of two ways: the central or peripheral route to persuasion. The Central Route to Persuasion When presented with information. users scrutinize that information. spending time considering the merits of and analyzing the information before them. They form attitudes or change existing attitudes based on the careful consideration and analysis of the stimuli presented. The Peripheral Route to Persuasion When presented w ith information, users make simple inferences about the merits of t he information based on a variety of factors such as the attractiveness or production quality of the messages. The users spend minimal time processing and evaluating the message based on the contents of the message itself. As a marketer, it's important to understand in which situations, and for wh ich types of products, the central and the peripheral routes wi ll be followed, as well as which route :is more predictive of future behavior. Cacioppo and Petty suggest that persuasion wil l occur via the central route when a person is both motivated and able to process information about the attitude object. The comment about motivation is important - if someone isn't truly interested in the information at hand, he or she may choose to not process it, making the Central Route less effective. Cacioppo and Petty also determined that persuasion via t he central route is both more enduring and more predictive of a future purchase decision. In contrast, persuasion will occur via the peripheral route when either or both of the previous conditions are not met - when someone is not motivated or able to process information (or both). The Ponds Acne Clear commercial below is a great example of using the central route to persuasion in an advertisement because it contains information about the product's technology and formula, citing how the product works to clear consumers' pores. Ponds Acne Clear commercial In contrast, the print ad that can be seen here relies on the peripheral route to persuasion as it focuses on visual imagery, as opposed to product information, to advertise Slack. The ELM has strong implications for marketers. It would be reasonable to assume stimuli that is processed via the central route is both more enduring and more predictive of future purchase decisions, so a marketer might jump to the conclusion that he or she should always create communications that appeal to the central route. But we shouldn't discount the value of the peripheral route, and the impact stimuli processed through it can have on awareness, consideration, and, ultimately, purchase decisions. When creating ads, marketers should assess the consumer's motivation to process information, ability to process information, and the media being used before deciding if an ad should appeal to the central or peripheral route. MOTIVATION TO PROCESS INFORMATION Remember, persuasion via the central route occurs when a consumer is both motivated and able to process information. There are a whole host of products, primarily low-involvement products like a pack of gum or a #2 pencil, for which consumers are unlikely to be motivated to process information, and, therefore, advertisements that use the peripheral route are more appropriate. ABILITY TO PROCESS INFORMATION Some consumers may not be able to process information in certain situations, making communications that use the peripheral route to persuasion the better choice. For example, a mother of three driving a car pool every morning may not be able to fully process a detailed radio advertisement about a new car she is considering due to the clamoring of the children in the car. Here, an advertise-ment that appeals more to the peripheral route may be preferable because it will still drive brand awareness, and may be more memorable. CHOICE OF MEDIA Even if your consumer has the motivation and the ability to process information, the central route may not be the best option for your marketing materials. Some highly effective forms of media simply lend themselves better to more visual, emotionally compelling advertisements that consumers process through the peripheral route. Consider lnstagram, which may not lend itself to advertisements that consumers process via the central route given the limited ability to explain product or service features or to compare to the competition. Creating multichannel marketing campaigns with advertisements that favor both the central and peripheral routes is good practice. This means, as a marketer, you should consider creating advertisements that appeal to both the central and peripheral route. Launching these campaigns with a purposeful eye toward attitude change may enable you to persuade your consumers to form more favorable attitudes toward your products and services. The Tri-Component Attitude Model According to the tri-component attitude model, there are three factors that integrate to form an attitude a person adopts toward a product or service: The cognitive component The affective component The conative component I TRI-COMPONENTATTITUDEMODEL Figure 6. 1.2 The Cognitive Component The cognitive component consists of a person's knowledge and perceptions of the features of a product or service. Consumers acquire this knowledge either from direct experience with the product or service or through information from various sources like friends and family, product trials, or even marketing communications. Once a consumer has acquired this knowledge, he or she typica lly express it as a belief (e.g., "I read that Nitro Cold Brew has two times the caffeine than regular coffee"). The Affective Component The affective component represents the consumer's emotions and feelings regarding the product or service in question. These emotions and feelings are also considered evaluations of the product or service because they capture a consumer's assessment of the product or service (e.g., "I love Nitro Cold Brew because I finally feel awake and energized when I dri nk it in the morning"). When the product or service in question is an experience, emotionally charged experiences that evoke real feelings in consumers - happiness, sadness, shame, disgust, anger, distress, guilt, or other emotions - often create st ronger, more memorable experiences. That's why experiential marketers strive to create affect-laden experiences that skew toward positive emotions. The Conative Component The conative component reflects behavior, or the likelihood that an individual will take a specific action regarding the product or service in question. In consumer research, the conative component of the tri-component attitude model is the customer's likelihood to make a purchase. In order to better understand the conative component, purchase intention scales are used to assess the likelihood of a consumer purchasing a product or behaving in a certain way. Interestingly, consumers who are asked to respond to an fi ntention-to-buy question appear to be more likely to actually make a purchase in cases when they indicated in: research they would do so. This suggests that simply asking the consumers about their purchase intentions creates a comm itment in their minds, which may shape the conative component. Just how do marketers use the tri-component attitude model? Typically, marketers regard the tri-component attitude model as a way to understand consumer attitudes and then work to alter or guide consumers to create favorable attitudes toward their products or services. In fact, marketers of leading brands have goals to strengthen and maintain the existing positive attitudes of customers so that they will not fall behind challenger brands' special offers designed to win over customers. In contrast, in product categories, marketers who work for those challenger brands often try to change the strong and positive attitudes consumers have toward the market leaders in an attempt to get consumers to switch brands. But changing attitudes about products is no easy feat, as consumers often resist evidence that challenges their existing attitudes or beliefs. So, marketers use the tri-component attitude model to understand how attitudes are formed and the best way to appeal to and alter these attitudes. Specifically, marketers need to understand the order in which the factors of the tri-component attitude model influence the decision-making process. For example, if cognitive factors drive the consumer decision-making process for a particular product or service, marketers need to consider providing as much rational product information up front, in the places consumers are likely to search. Student loans are a great example of this as consumers ,consider the cognitive components before the affective or conative because these loans are a complex financial services product with many competing product options. To choose the right loan, consumers often try to compare interest rates being offered, the service level they get from various brands, and many other product attributes that appeal to a consumer's sense of cognition. Since cognition is the "first factor· in a consumers' decision-making process for student loans, marketers of this product should focus on creating advertisements that appeal to a consumer's need for cognition. Alternatively, if affective factors drive the decision-making process, marketers should focus on appealing to consumers' emotions by helping them see how their products are going to impact the consumers' lives in a very emotional way. Lastly, if conative factors drive the decision-making process, marketers need to enable people to act (try before they buy) if possible - because for these types of products, people want to understand how using the product will impact t hem. Here are a few examples of the product types discussed above: Cognitive: Credit cards Affective: Romantic getaway Conative: Medication The Multi-Attribute Model The multi-attribute model portray consumers' attitudes as a function of their assessments of the attributes a product has (or doesn't have). There are several types of multi-attribute models, but we'll focus on two in this chapter: The attitude toward object model The attitude toward behavior model The Attitude Toward Object Model According to the attitude toward object model. a consumer's attitude toward a product is a function of one, the extent to which the product has or doesn't have each of a set of attributes, and two, the consumer's perception of the importance of each attribute. Put simply, the attitude toward object model enables us to understand that consumers develop favorable attitudes toward brands that we believe perform better on the attributes that we believe are most important. Marketers use this model to develop advertisements that ,change or shape perceptions. Just how do they do this? By adding new product attributes, changing consumers' perceptions of existing attributes, and developing new products after researching consumer preferences. Let's discuss each of these options in detail: Adding New Product Attributes Marketers don't highlight every product attribute in their advertisements. In fact, typically, they are forced to choose what they believe are the most important attributes and only promote those. However, if marketers find that their advertisements are not connecting with customers, they may consider adding an attribute that exists as part of the current product or creating a new attribute (e.g., updating ,or innovating the product) and publicizing that new attribute. In May 2021, in response to Senator Elizabeth Warren's ca II for banks and federal regulators to limit overdraft fees, companies like Huntington Bank stepped up to the plate. They added the "Safety Zone" feature to protect consumers from overdraft fees if they overdraw their bank accounts by more than $50. Huntington went on to advertise that new feature, aggressively using broadcast media to get the message out. It's important to note that advertising new attributes, whether existing or truly new. will likely only resonate with certain types of customers. For example, the Huntington advertisement is specifically targeted toward people who have the propensity to overdraft. This feature may not resonate with all Huntington customers, so the company should be careful to whom it markets this new attribute. Changing the Perceived Importance of Product Attributes Marketers of various brands build their value propositions around different product attributes, sometimes differentiating their brands through narrowly defined benefits to gain market share in a cluttered environment. A prime example of this is Colgate's toothpaste lines. Colgate markets several toothpaste products, and they have thoughtfully carved out and differentiated the benefits of each. For example: Colgate Total fights germs for up to 12 hours Colgate Max Fresh eliminates bad breath Colgate Sensitive Pro-Relief helps people who have sensitive gums But, what if one of these attributes becomes less important to consumers over time? In that case, companies will need to focus on advertising a new product attribute to communicate a product's value proposition. One example of a company doing this is Dole, who realized that customers valued the packaging of fruit in 100% juice, something Dole did but many of their competitors did not. The company used that discovery to change perceptions, highlighting the importance of that attribute and using it to differentiate from the competition. One advertisement, for example, asked, "Wouldn't you rather have your fruit in 100% fruit juice?" and contrasted an image of juice pouring into Dole's fruit cup with an image of syrup pouring into "other cups." Figure 6. 1.3 Developing New Products Marketers often use the attitude toward object model in developing new products. Consider this hypothetical example: your favorite orange juice manufacturer plans to add a new juice product to its line. In research, the company identifies three attributes that shape consumer s' attitude toward juices: Flavor Color Packaging The manufacturer, in turn, focuses the new product along these dimensions. In addition, the company decides to conduct further research to understand the degree to which each attribute matters to consumers in order to properly position the product upon launch. Using the attitude toward object model can help marketers truly understand which attributes are critical to consumers so they can design and build new products and solutions based on those needs. The Attitude Toward Behavior Model I THEORY OF REASONED ACTION Attitudes Behavioral Behavior Intention Subjective Norms Figure 6. 1.4 The attitude toward behavior model captures an individual's attitude toward taking action as it pertains to a specific product, not simply the person's attitude about the product itself. Often, this may be more useful to marketers as they will be able to gauge a consumer's purchase intention. But shouldn't you be able to gauge purchase intention from both the attitude toward behavior and attitude toward object models? Not exactly. For instance, a consumer looking for a new car might like BMWs, but he or she may not be able to purchase such a costly car. While the attitude toward object model would help the marketer understand why the consumer favors BMWs (e.g., which attributes they favor most, etc.), it wouldn't help the marketer understand that the consumer is unlikely to take action to purchase the car. This is where the attitude toward behavior model could be helpful. The attitude toward behavior model is based on the theory of reasoned action (TRA). The TRA states: A consumer's intention to purchase is the most important predictor of if they will actually do so, and that intent must precede behavior. Stronger intentions lead to the consumer putting in m ore effort to perform a certain behavior, which leads to an increased likelihood for the behavior to occur (even if there are hurdles or roadblocks). In addition, the TRA states that behavior is a combination of attitudes, intentions, and subjective norms. Subjective norms are our feelings toward what our peer groups (friends, families, etc.) think about the actions we are considering taking. If our peer groups are supportive of us taking the action at hand, we're more likely to do so. Marketers can use the attitude toward behavior model and the theory of reasoned action to shape consumer attitudes and, therefore, behavior. In particular, with an understanding that consumer action is based on a combination of attitudes and subjective norms, marketers should work to not only position their products in a favorable light to their consumers, but also to recognize the importance of peer groups and gain their favor. Often, marketers use referral programs to emphasize the acceptance of products or services by peer groups. Tesla is a prime example of this with an incredibly successful double-sided referral program. While the actual bonus has varied over time, it has focused on a free credit on supercharging. For example, as of September 2021, the solar referral is $500 to both buyer and referrer. For car purchases or leases, the bonus is 1,000 miles of free supercharging. Figure 6. 1.5 Section 2: Altering Consumer Attitudes Throughout this chapter, weve discussed the importance of marketers using consumer behavior theory to alter attitudes. Doing so is often critical to restoring a favorable attitude toward a product or service. In addition to the methods we have discussed, one way to alter these attitudes is to understand the functions, or the motivations, behind consumers' attitudes. Attitudes are classified into f our functions: The utilitarian function The ego-defensive function The value-expressive function The knowledge function The Utilitarian Function The utilitarian function outlines that consumers' attitudes reflect the value, or utility, that consumers perceive various brands provide. According to the utilitarian function, when a product enabled us to reach our goals in the past, we tend to have a favorable attitude toward it. Marketers can use their knowledge of the utilitarian function to reinforce positive attitudes or change an existing attitude or create a favorable attitude. They can do this in multiple ways: Create marketing materials that reinforce t he benefits of the value proposition, using principles of repetition and influencer engagement to convince consumers of the utilitarian benefits the product provides Consider sampling, enabling consumers to try products before they buy them so they can see for themselves the utility provided by the product or service being considered Advertise new benefits or benefits consumers may not have considered, helping consumers realize that t he utility or value provided by t he product may be far greater than initially considered The Seventh Generation's video ad "Seventh Generation Laund[Y. Detergent vs. Those Other Guy~" takes the third approach discussed above. The ad differentiates the brand and its products by introducing a new benefit that consumers may not have considered - the benefit of using cleaning supplies that are not only effective but also environmentally friendly. The Ego-Defensive Function The ego-defensive function maintains t hat consumers' attitudes are formed in order to protect their self-esteem or to j ustify taking acti ons t hat might otherwise make them feel guilty. How does this play out in real life? A student who is a brilliant engineer, strong in mat h and science, may not be the strongest English or history student. The ego-defensive function posit s that that student might defend himself or herself against feelings of inadequacy by adopting a defensive attitude, saying or thinking, "English and history are useless subjects anyway. I'm going to be a software engineer. Why would I need to study these subj;ects to begin with?" Marketers need to tread lightly when considering how to alter attitudes of consumers that are based in the ego- defensive function because these attitudes are often grounded in feelings of insecurity, doubt, or a lack of self- confidence. One way marketers can impact these feelings and position t heir products in a positive light by building their consumers' egos and helping them understand their ability to achieve more using the advertised products. Nike has had particular success in building t heir consumers' egos, emphasizing t he simple act of trying in order to build success and overcome feeling s of inadequacy. One advertisement, for example, featured an image of a basketball player with t he words, "Every professional was once an amateur." The Value-Expressive Function The value-expressive function maintains that consumers hold attitudes that reflect their closely held values and beliefs. Consumers adopt certain attitudes to translate their values into tangible expres sions of products and situations they come across in their everyday lives. For ex.ample, if a consumer values freedom, he or she is likely to have a positive attitude toward flat organizations and work environments with flexible work schedules and dress codes. Marketers can build t heir brands to align with the value-expres sive function as a way to support consumers' closely held beliefs. This is the cent ral concept behind values-based branding, a concept adopted by compan ies like TOMS Shoes, Warby Parker, and CommonBond. Companies use values-based branding to capt ure the hearts, minds and wal lets of their customers by building brands that spend marketing dollars developing programs that advance their customers' lives as well as t heir communiti es - outside of the products and services t hey provide. Interested in learning how to build a values-based brand? Check out this Forbes article to learn more. The Knowledge Function The knowledge function maintains that people form attitudes based on their ability to process and consume facts about the products and services they come across. The knowledge functi on is particularly important to highly analytical consumers who take care in using facts to form their feelings and attitudes about a particular product or service. Accord ingly, marketers can try to alter or create favorable attitudes about their products by providing data and facts to back up their claims. This VS advertisement appeals to the knowledge function by helping consumers understand that t he drink itself can provide three of the five recommended servings of fruits and vegetables per day. The four functions discussed above are the motivati onal bases which shape and reinforce consumers' attitudes toward various products and services. Understanding them helps us understand why consumers hold the attitudes that they do have. That understanding can, and should, form the basis of marketing plans focused on creating positive attitudes in consumers. Glossary affective component: represents the consumer's emotions and feelings regardi ng the product or service in question ( component of the tri-component attitude model) attitude toward behavior model: captures an individual's attitude toward taking action as it pertains to a specific product, not simply the person's attitude about the product itself attitude toward object model: enables understanding that consumers develop favorable attitudes toward brands that consumers believe perform better on the attributes that they believe are most important attitudes: an individual's beliefs, feelings, and intentions toward any aspect of his or her environment (an internal influence); in consumer behavior terms, attitudes reflect either favorable or unfavorable evaluations of an "attitude object" and ultimately motivate consumers to either buy or not buy particular products or brands cognitive component: consists of a person's knowledge and perceptions of the features of a product or service (component of the tri-component attitude model) conative component: reflects behavior, or the likelihood that an individual will take a specific action regarding the product or service in question ( component of the tri-component attitude model) ego-defensive function: maintains that consumers' attitudes are formed in order to protect their self-esteem or to justify taking actions that might otherwise make them feel guilty elaboration likelihood model (ELM): seeks to explain how humans process stimuli (for example, marketing materials) and how doing so may lead to effective attitude change knowledge function: maintains that people form attitudes based on their ability to process and consume facts about the products and services they come across multi-attribute model: portrays consumers' attitudes as a function of their assessments of the attributes a product has (or doesn't have) object: in the context of marketing and consumer behavior, can be a product, brand, service, price, package, advertisement, or any other aspect of consumption tri-component attitude model: states there are three factors that integrate to form an attitude a person adopts toward a product or service: cognitive, affective, and conative utilitarian function: outlines that consumers' attitudes reflect the value, or utility, that consumers perceive various brands provide value-expressive function: maintains that consumers ho;ld attitudes that reflect their closely held values and beliefs