Post on 16-Jul-2016
description
ATTITUDES AND PERSUASION; DECISION
MAKING
BSBA 3D MM
Asuncion Katrina
The Power of Attitudes Attitude:
A lasting, general evaluation of people (including oneself), objects, advertisements, or issues
Anything toward which one has an attitude is called an object .
Attitudes are lasting because they tend to endure over time.
THE FUNCTIONS OF ATTITUDESDEVELOPED BY: DANIEL KATZ
Functional Theory of Attitudes: Attitudes exist because they serve some function for the
person offers an explanation as to the functional motives of
attitudes to consumers Each function attempts to explain the source and
purpose a particular attitude might have to the consumer.
Katz’s Attitude Functions Utilitarian function Value-expressive function Ego-defensive function Knowledge function
1. Utilitarian function one of the most recognized of Katz’s four
defined functions. Says that an individual will make decisions
based entirely on the producing the greatest amount of happiness as a whole
A consumer’s attitude is clearly based on a utility function when the decision revolves around the amount of pain or pleasure in brings.
2. Value Expressive function
Is employed when a consumer is basing their attitude regarding a product or service on self-concept or central values.
The association or reflection that a product or service has on the consumer is the main concern of an individual embracing the value expressive function
This particular function is used when a consumer accepts a product or service with the intention of affecting their social identity.
3. Ego-Defensive function
is apparent when a consumer feels that the use of a product or service might compromise their self-image.Ex. cigarettes, alcoholic drinks-Products that promise to help a man project a macho image appeal to his insecurities about his masculinity
Ads that promise to help a man project a “macho”
4. Knowledge function prevalent in individuals who are careful
about organizing and providing structure regarding their attitude or opinion of a product or service
The need for order, meaning and structure Ads as solution to any problem Ads that promise to bring order and
meaning to the consumer’s life. Ads that provide info about the brand for
consumers’ knowledge
THREE (3) COMPONENTS OF ATTITUDES
Affect (Feelings)
Behavior (Actions)
Cognition (Thoughts)
CONCEPT OF HIERARCHY OF EFFECTS
It explains the impact of the 3 components of ATTITUDE.
Awareness + Knowledge
= Cognition Liking + Preference = Affect Conviction+
Purchase = Behavior
COGNITION
AFFECT
BEHAVIOR
Three Hierarchies of Effects
How attitudes are formed and learned?
The 3 increasing level of COMMITMENTS:
COMPLIANCE
LOWEST LEVEL OF
INVOLVEMENT
HIGHEST LEVEL OF
INVOLVEMENT
ATTITUDE THEORIES Cognitive Dissonance – Discrepancy between
behavior and attitude. The Consumers actively seek to resolve or reduce gap.
Self perception – people observe own behavior and use these to shape own attitudes in low involvement hierarchy. The Consumers derive an attitude after having engaged in a behavior.
Social Judgment – People understand the world by matching up new stimuli with information already stored in memory. The Consumers adjust their attitude to respond to new information.
Balance – It describes how the Consumers evaluate elements that belong together.
Main Managerial Implication of Persuasion and Attitude
Persuasion is the attempt to change a consumers attitude, beliefs or action in your favor.
Process of Persuasion
Gaining Attention
Comprehending
Reducing resistance (yielding)
Retaining Acting
Gaining Attention
Persuasion cannot begin until audience don’t pay attention
Different techniques are used to get attention in different situations• Use a prop or creative visual aid. • Show a gripping photo• Play a short video.
Comprehending • Your audience must understand the message
before it can be influenced by it.
• A fundamental understanding of the data being presented is essential to enable the person being persuaded to take a stand for the issue.
Reducing Resistance • Try what-if scenarios. Offer counter
argument for each of these scenarios.
• Present counter arguments in sentences that emphasize consumers benefits.
• Receiver will be less resistant if your request is reasonable and you are believable.
Retention
At this stage of the persuasion process the listener must retain the information long enough to act on it.
The message is more likely to be retained, if it is interest to the listener.
ActionThe measure of persuasive success is
whether the listener is motivated to proceed to a course of action presented by the persuader.
For motivating action in
• Favor Request • Claim Request• Sales Message
Elaboration Likelihood Model
Persuasion Knowledge ModelThe persuasion knowledge model posits
that consumers develop knowledge about persuasion and use this knowledge to respond to persuasion experiences.
AttitudesThe term attitude is widely used in
common speech. Here, we limit the definition of attitude to a consumer's overall, enduring evaluation of a concept or object, such as a person, a brand, a service. An attitude is not fleeing; it is an orientation that lasts over time.
An attitude is general in that it summarizes consumers' evaluations over a wide range of situations. Anything toward which one has an attitude is called an attitude object.
Attitudes are a product of information acquisition. That is, attitudes are learned beliefs, feelings, and reaction tendencies.
Attitudes
Decision Making
Decision Making
Types of Consumer Decision
Extended Decision Making
This type of decision making process is used when the
product is a very high involvement product, possible a high
investment product as well.
Most Complex
Expensive and High Risk
Frequently brought
Brands compare
Takes time seeking Information
Extended Decision Making
Buying Car or a House
Limited Decision Making Involvement level is comparatively low
Prices of product range between low to moderate
Few brands are evaluated before the purchase decision is made
Moderate amount of time is spent to make decision
Limited Decision Making •Vacation package•Gifts•Clothes•Home furniture
Habitual Decision Making •Decision is make quickly
•Level of involvement in the selection
process is minimum
•Product is evaluated after the purchase
•Low cost goods
•High frequency of buying
•Consumer is likely o stay in one brand.
Habitual Decision Making
Weekly Groceries and regular coffee order
Types of Information Search
Deliberate vs. Accidental Search Online Search External Search Variety Seeking
Brand Switching
How do consumer make decision? Expected utility theory
consumers are rational and they have complete information. They make choices that maximizes their utility.
How do consumer make decision? Consumer heuristics
shortcuts that consumers make to save time and effort; simple & low involvement
Mental shortcuts & mental rules-of-thumb Same brand I bought last time The brand my mom used to buy for the family
More Mental Shortcuts… Market beliefs
You get what you pay for – but not always the case
Higher priced products have higher quality
Product signals Brand reliability VS years in business Country of origin (made in China VS Japan)(we tend to “see” what we are looking for,
and ignore the rest)
More Mental Shortcuts Prospect Theory – Different ways that
consumers perceive gains and losses; our decision is based on how we value potential gains & losses that result from making choices (using reference points)
SRP VS sale price (savings?) Cash discount VS surcharge on use of credit
card
Decision rules of highly involved consumers Noncompensatory decision rule – when
one product attribute has low standing & nothing can compensate; consumers simply eliminate all other options.
Compensatory – consumer tend to consider the entire picture and all product attributes; highly involved & willing to exert extra effort to check product specifications/other details
When we choose familiar brands…
Loyalty Habit Laziness
Inertia – we buy the same brand out of habit every time because it requires less effort
Think about this ….
Market terminologies
Consumer hyperchoice – profusion of options; consumers bombarded with too many options
Neuromarketing – a brain-scanning device to track blood flow during mental tasks (to measure consumer reactions)
Cybermediaries – intermediary that filters & organizes online market info (for consumers to identify & evaluate alternatives more efficiently)
Ethnocentrism – the tendency to prefer products or people of ones own culture to those of other countries
GROUP 1 BSBA 3D