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Consumer Behavior

(The Why of Buy)

Consumer Behaviour I RKM


Session 6

Consumer Attitude; Attitude


formation and behavior

Consumer Behaviour I RKM


Learning Objectives (1 of 2)
To understand how consumers’ attitudes influence their
decision-making.

To understand the tri-component attitude model.

To understand how to apply multi attribute models to


change consumers’ attitudes.

To understand how to alter consumers’ attitudes by


making particular needs prominent.

Consumer Behaviour I RKM


Learning Objectives (2 of 2)
To understand cognitive elaboration and the two routes to
persuasion.

To understand cognitive dissonance and resolving


cognitive conflicts.

To understand how people assign causality to events.

To understand how consumers’ attitudes influence their


decision-making.

Consumer Behaviour I RKM


Attitude
Defined
• A learned predisposition to behave in a consistently
favorable or unfavorable manner with respect to a given
object (product, brand, service, price, advertisement,
promotional message etc.)

Consumer Behaviour I RKM


Attitude Formation
Consumers form new attitudes and also change existing
attitude..

• Consumers learn attitudes


• Sources of attitude formation
– Experience, Beliefs
– Family and friends
– Media/Internet/Social Media

Consumer Behaviour I RKM


Consumers learn attitudes
Components of Attitude in Branding Action (TVS XL SUPER
MOPED)
- Cognitive Component (Reliable Vehicle)

- Affective Component (our vehicle and the vehicle for our


village)
- Behavioural Component (no cheque book required & easy
instalments)
Consumer Behaviour I RKM
Consumers learn attitudes
Category Involvement and Involvement with brands

Consumer Behaviour I RKM


Attitude formation towards Product
Categories/Brands
 Brands in the Gold Category and credibility factor linked
to celebrities

 Category Building and Brand Building

Consumer Behaviour I RKM


Example: Bio True

Source: Bausch + Lomb


Consumer Behaviour I RKM
Example: Wrangler
Wrangler wants to change the attitudes of millennials, many of
whom have shunned jeans in favor of sweatpants or leggings, by
telling them traveler jeans are comfortable.

Consumer Behaviour I RKM


Role of Personality Factors
Personality traits significantly influence the formation of
attitudes.

• Need for cognition (High & Low)


• Innovativeness

Consumer Behaviour I RKM


Role of Attitudes
• Attitudes are consistent with behavior – Similar attitude consistently
lead to the same behaviour. Despite this, ATTITUDE are not permanent and
can change

• How do situations affect attitudes?

Consumer Behaviour I RKM


Situations Affecting Attitudes
Product/Service Situation Attitude
Energizer Hurricane is “I know that the hurricane is
Batteries coming going to knock out my electricity,
so I’d better be prepared.”
Maruti Dzire Buying a new “With gas prices so high, I’ve got
car to trade in my S U V and buy a
car that gets 30 m p g!”

Consumer Behaviour I RKM


Learning Objective
 To understand the tri-component attitude model.

Consumer Behaviour I RKM


Tri-component attitude model

Example:

Cognitive – The belief that


global warming is real and
happening in the world

Behavioural – Riding your


bike to work instead of
driving your car

Affective – Feeling
negative about the state of
the world and other
people’s indifference

Also known as CAB or ABC Model


Consumer Behaviour I RKM
Tri Component Model - Example
In general, all three of the components of an attitude will be
consistent.

Example 1 - If you do not like vegetables you will get upset when
you are given them (affective), you will avoid eating them
(behavioural/conative) and you will believe that they are not
necessary and you can get your vitamins from other foods
(cognitive).

Example 2 - My best friend really likes chocolate, she feels happy


when she sees it (affective), she eats it regularly
(behavioural/conative) and she believes that a small amount is not
bad for her health (cognitive)

Consumer Behaviour I RKM


The Cognitive Component
(Expression of beliefs)

Beliefs about Two TV Technologies


PRODUCT ATTRIBUTE LED TV 3D TV
Off-angle viewing right
Images fades slightly from theExcellent image from all angles
Screen reflectivity Small Medium
Motion blur Negligible Negligible
Color saturation Excellent Good
His friends had used it easily His friend has had the TV for 3
when they watched TV months but could not use it
Remote control ease of use together without consulting the manual
His friend had to call the cable
His friend said it took him 15 company and have theM come
Compatibility with cable minutes to connect the TV to his house to connect the TV
company's DVR and DVR and DVR

Consumer Behaviour I RKM


The Affective Component
(Expression of consumer to buy, reflects emotions and feelings)

For the past 30 days, you have been using Old Spice Aftershave Balm.
Please tell us how your skin felt after using the product. Please indicate
your level of agreement or disagreement with each of the statements
listed here.
Blank Strongly Agree Neutral Disagree Strongly
Agree Disagree
Old Spice Balm refreshed my skin. [1] [2] [3] [4] [5]

Old Spice Balm tightened my skin. [1] [2] [3] [4] [5]

Old Spice Balm smoothed my skin. [1] [2] [3] [4] [5]

Old Spice Balm suppled my skin. [1] [2] [3] [4] [5]

Old Spice Balm revived my skin. [1] [2] [3] [4] [5]

Consumer Behaviour I RKM


The Conative Component
(Expression of consumer to buy)

Which of the following statements best describes the chance that


you would buy Old Spice Aftershave Balm the next time you
purchase an aftershave product?
……….I definitely will buy it.
……....I probably will buy it.
……….I am uncertain whether I will buy it or not
……….I probably will not buy it.
……….I definitely will not buy it.

Consumer Behaviour I RKM


Example - The Conative Component

Consumer Behaviour I RKM


Altering Consumer Attitudes
Altering consumer attitudes is an important marketing strategy

• Changing beliefs about products – Information aimed at


changing an attitude must be compelling and repeated many times if it is to
overcome people’s resistance

• Changing brand image – Its an attempt to alter consumer’s overall


assessment of the brand

• Changing beliefs about competing brands – It involves


changing consumer beliefs about competitors brands or product categories.

Consumer Behaviour I RKM


• Changing beliefs about products
 Car Mileage – “Kitna
deti hai”

 Service Stations –
Service stations are
available across towns
and cities
• Changing brand image

From “Express Yourself” to “The Smartphone Network”


Consumer Behaviour I RKM
Changing beliefs about competing brands

Consumer Behaviour I RKM


Learning Objective
 To understand how to apply multi attribute models to
change consumers’ attitudes.

Consumer Behaviour I RKM


Multi attribute models portray consumers’ attitude as
functions of their assessment of the objects’ prominent
attributes.

1. Attitude toward object


2. Attitude toward behaviour model
3. Theory of reasoned action
4. Theory of trying to consume
5. Attitude towards ad model

Consumer Behaviour I RKM


Attitude-Toward-Object Model
• Used to change attitudes
• Ways
– Add an attribute
– Change perceived
importance of an
attribute
– Develop new products

Marketers use ATO model in developing promotions designed to change consumers


attitude in favour of the brands advertised.
Source: Dabur India Ltd
Consumer Behaviour I RKM
Attitude-Toward-Behaviour (the act) Model

• Attitude toward the brand


• How do I feel about
buying this brand?

Example – I want to buy a car and I like BMW (positive attitude


towards car) but not ready to buy an expensive BMW (a negative
attitude towards the behaviour associated with the object)

Consumer Behaviour I RKM


Attitude-Toward-Behaviour Model
Attitude toward the act (or behaviour) of shopping
online. Attitude reflected nine desired benefits –

1. Effectiveness and modern


2. Purchase Convenience
3. Information Abundance
4. Safety
5. Service Quality
6. Delivery Speed
7. Homepage Design
8. Selection freedom
9. Name Familiarity
Consumer Behaviour I RKM
Theory of Reasoned Action
• Incorporates CAB components
• Normative beliefs
• Motivation to comply with norms

Consideration of others opinion is


her subjective norm.

Consumer Behaviour I RKM


1. Outcome of the
purchase as perceived

2. Likeability of the
purchase as perceived

3. What relevant others


would think of
purchase

4. The motivation of the


consumer to comply
with the preferences
of relevant others

https://www.youtube.com/watch?v=y97kLwoN9ag
Consumer Behaviour I RKM
Learning Objective
 To understand how to alter consumers’ attitudes
by making particular needs prominent.

Consumer Behaviour I RKM


Functional Approach
The motivations behind people’s attitudes are known as
“functions”.

Changing attitudes by appealing to consumers’ motivations


is known as the functional approach. Attitudes are classifieds
into four functions –

 Utilitarian function
 Ego-defensive function
 Value-expressive function
 Knowledge function
 Associate brands with worthy causes and events

Consumer Behaviour I RKM


The Utilitarian Function stems from the belief that
consumers attitudes reflect the utilities that brands provide.
Enables us to gain rewards and avoid punishment

Example

Consumer Behaviour I RKM


The Ego-defensive Function The ego-defensive
function refers to holding attitudes that protect our self-esteem or
that justify actions that make us feel guilty.

Attitudes are formed to protect the “ego”.

Example – Ads for cosmetics and junk food

Consumer Behaviour I RKM


The Value-expressive Function – We often express our
personal values through the brands we purchase and own

Example –

I would prefer buying P&G products as it cares for under privileged


child education so as me.

Person who values protecting environment may not buy HUMMER..


Consumer Behaviour I RKM
The Knowledge Function – People form attitude because
they have a strong need to understand the characters of the people,
events and objects they encounter. Therefore many firms use ads
centered upon the consumers need to know.

5X more Coverage

Consumer Behaviour I RKM


Learning Objective
 To understand cognitive elaboration and the two routes
to persuasion.

Consumer Behaviour I RKM


Elaboration Likelihood Model
Defined
A person’s level of involvement during message processing
determines which route to persuasion is likely to be effective.
(Richard E. Petty and John T. Cacioppo)

The proposition that attitudes can be changed by either one of


two different routes to persuasion – a central route or a
peripheral route.

Consumer Behaviour I RKM


Central Route
• High involvement (Extensive Problem Solving)
• Considered thought and cognitive processing
• Learning through
– Attribute-based information
– High quality arguments
– Exertion of effort to learn, comprehend, evaluate
• Comparative ads
• Objective knowledge

Consumer Behaviour I RKM


Peripheral Route
• Low involvement (Limited Problem Solving)
• Little thought and little information processing
• Learning through
– Repetition
– Passive processing of visual cues
• Non-comparative ads
• Subjective knowledge

Consumer Behaviour I RKM


The Elaboration Likelihood Model
Low level of elaboration.
Audience scrutinizes Involvement Low Involvement
message content LOW
thoroughly. High HIGH
motivation level.

Central Route Peripheral Route

Peripheral
Message
Cues, passive
Arguments
learning
Influence
Influence
Attitudes
Attitudes

Consumer Behaviour I RKM


Beautiful Girls

In peripheral route, attitude change often is an outcome of secondary inducement (e.g. discounts, free samples,
great packaging or encouragement by celebrityConsumer Behaviour I RKM
endorsements)
Learning Objective
 To understand how people assign causality (blame or
credit) to events.

Consumer Behaviour I RKM


In the process of assigning causality, form
or alter attitudes..

The attribution theorists assume that humans are rational


and motivated to identify and understand the causal
structure of their relevant environment.

Marketing Implications –

 Offer high quality products


 Advertising should emphasize quality
 Moderate sized incentives to attract customers

Consumer Behaviour I RKM


Attribution Theory
• Self-perception attribution
• Defensive attribution
• Foot-in-the-door technique
• Door-in-the-face technique

Consumer Behaviour I RKM


Self Perception Attribution
Defined
People see themselves in the causalities they form about
prior behaviors and the attitudes they develop thereafter.

• Internal Attribution
• External Attribution

Any product advertised which appeals to your internal


attributions is normally bought.
Consumer Behaviour I RKM
Defensive Attribution
Defined
People generally accept (or take) credit for success
(internal attribution), but assign failure to others or outside
events (external attribution)

Advertisers use persuasive messages internalising the cause amongst the audience
Consumer Behaviour I RKM
Applications
• Why does the foot-in-the door technique (aka “sequential
request”) increase the likelihood that the requestee will
fulfill a larger request?

• How is it different from the door-in-face technique?

Consumer Behaviour I RKM


FITD example – Discounts offered by retailers to induce purchase by
influencing consumer attitude..
Consumer Behaviour I RKM
Bigger Incentives externalize the cause of the behaviour to the incentives offered. Works
well in some situations. Consumer Behaviour I RKM
Analyzing Self-Attributions
Self-attributions reflect the way people see themselves in the causalities
they form about prior behaviors and the attitudes they develop thereafter.

Scenario Distinctiveness Consistency Over Time Consensus


and Varied Situations
An amateur Am I the only one Will I see the same If I ask my friends,
photographer who sees this superiority of the H P would most of them
who sees that, marked difference, printer when I take agree that my
when printed or do others notice other photos? Or is the pictures look better
on the latest the same? advantage I see mostly when printed on the
HP printer, her a function of what this H P printer, or would
photos look articular photo shows? some notice the
much better difference and others
not?
Reviewing Self-Attributions

Consumer Behaviour I RKM


Session 7
Reference Groups and Communities,
Opinion Leaders & WOM (Chapter 9)

Consumer Behaviour I RKM


Learning Objectives
To understand the credibility and influence of reference
groups.
To understand the persuasive power of spokespersons,
endorsers, celebrities, salespersons, vendors, and media.
To understand the dynamics of opinion leadership and
word-of-mouth.
To understand word-of-mouth’s online prevalence,
strategic applications, and perils.
To understand how consumers adopt innovations over
time.

Consumer Behaviour I RKM


Reference Groups
Groups that serve as sources of comparison, influence,
and norms for people’s opinions, values, and behaviors

Consumer Behaviour I RKM


Learning Objective
To understand the credibility and influence of reference
groups.

Consumer Behaviour I RKM


Source Credibility
A source’s persuasive impact, stemming from its
perceived expertise, trustworthiness, and believability.

Source Types and Influence


• Formal sources
• Informal sources
• Normative influence
• Comparative influence

Consumer Behaviour I RKM


Types of Reference Groups

Contactual/Membership Reference Group :

• Individual membership of this group


• Regular face to face contact with the members of the group
• Approves of the values, attitudes and standards

Aspirational Reference Group :


• Individual does not hold membership
• No face to face contact with the members of the group
• Provide positive influence on attitudes, values & behaviours

Consumer Behaviour I RKM


Types of Reference Groups (2)
Disclaimant Reference Group :

• Individual holds membership of this group


• Regular face to face contact with the members of the group
• Does not approves of the values, attitudes and standards

Avoidance/Dissociative Reference Group

• Individual does not hold membership


• No face to face contact with the members of the group
• Individual avoids / has opposite attitudes and values

Consumer Behaviour I RKM


Reference Group Influence (1 of 2)
• Membership group
• Symbolic group
Group Membership and Type of Influence –

Blank Normative Influence Comparative Influence

Membership High level of conformity to the standards Conformity to the standards of groups that the
Group of immediate membership groups, such influenced aspires to join, and probably will. The
as family and peers. The influencer and two parties are one or two socioeconomic groups
influenced belong to same apart. The influenced and influencer probably
socioeconomic group and are both aware know each other and are aware of the influence.
of the influence.
Symbolic No significant influence. The influencer is High degree of influence, although the
Group outside the influenced reference group. influenced know that they will never join the
The influenced are unaware of the influencers. Socially, the parties are far apart, but
unlikely influencers’ norms. the influencers recognize the degree of their
influence.
Consumer Behaviour I RKM
Reference Groups Among
Youngsters

Party Animals Geeks

Reference Groups Socializers


Adventure
Seeker

Sports Status Seekers


Enthusiasts/IPL

Consumer Behaviour I RKM


Consumption-Related Reference
Groups
• Friends
• Fellow shoppers
• Virtual communities (“buddy lists” )
• Advocacy groups

Consumer Behaviour I RKM


Conformity
To influence its members, a reference group must:

• Inform members that the brand or


product exists.

• Provide opportunity to compare thinking


with the attitudes and behavior of the
group.

• Influence individual to adopt attitudes


and behavior that are consistent with
the group’s norms.

• Legitimize the member’s decision to


use the same products as other
members.
Consumer Behaviour I RKM
Characteristics of Conformists
1. They feel that if someone is behaving in a certain way in a group, that it is
the right way to behave.
2. They prefer wearing stylish clothing and they pay attention to what
others are wearing.
3. They try to fit in during social gatherings so as not to be out of place.
4. They are guided by others’ behavior if they feel unsure how to behave in
a situation.
5. They often behave in a manner they feel others want them to behave.
6. They change their mannerisms and approaches if they feel that someone
they are interacting with disapproves of them.
7. They often pick up slang expressions from others and start using them.
8. They always pay close attention to others’ reactions to their behaviors.

Consumer Behaviour I RKM


Learning Objective
To understand the persuasive power of spokespersons,
endorsers, celebrities, salespersons, vendors, and media.

Consumer Behaviour I RKM


Conveying Company Credibility
• Past performance
• Good Reputation
• Product Quality
• Good Service
• Image and attractiveness of spokespersons
• Reputation of retailers that carry offerings
• Media where they advertise

Consumer Behaviour I RKM


Institutional Advertising
Defined
Advertising that promotes a company’s overall image
without referring to specific products.

https://www.youtube.com/watch?v=OSb5afm
esJQ

https://www.youtube.com/watch?v=l8-
Mr1Vf2iw&list=PLd6ErhcA8Pd8KBwseOkcXoqwQ7hz3H4N5

https://www.youtube.com/watch?v=3t6bLugtJkQ&list=PLd
6ErhcA8Pd8KBwseOkcXoqwQ7hz3H4N5&index=2

Consumer Behaviour I RKM


Consumer Behaviour I RKM
Endorsers and Spokespersons
 Synergy between endorser and type of product/service
advertised important

 Endorsers with demographics similar to target


audience more credible & persuasive

 Consumers must trust the marketer (even if they like


the endorser)

 Message contents must be congruent with


spokesperson’s qualifications

Consumer Behaviour I RKM


Celebrities (1)
• Celebrities represent an idealization of life that most people
imagine they would love to live.

• Four ways in which celebrities are used to promote products

1. Testimonial: based on personal usage, a celebrity


attests to the quality of the product

Consumer Behaviour I RKM


Celebrities (2)
Endorsement: celebrity lends name and appears on behalf
of a product (may not be an expert)

Consumer Behaviour I RKM


Celebrities (3)
Actor: celebrity presents a product through his or her
character

Consumer Behaviour I RKM


Celebrities (4)
Spokesperson: celebrity represents the brand or company
over an extended period of time

Consumer Behaviour I RKM


Celebrities (5)
Executive: Company’s higher official promoting brand

Consumer Behaviour I RKM


Celebrities (6)
Expert: Is a person who, because of his or her occupation,
special training, or experience, is in a unique position to help the
prospective customer evaluate the brand advertised.

Consumer Behaviour I RKM


Slice-Of-Life Commercials
Defined
Promotional messages showing typical consumers in
everyday situations

Consumer Behaviour I RKM


Credibility
• Salesperson credibility
• Vendor credibility
• Medium credibility

Consumer Behaviour I RKM


Learning Objective
To understand the dynamics of opinion leadership and
word-of-mouth.

Consumer Behaviour I RKM


Opinion Leader Motivations
The Motivations of Opinion Leaders and Receivers
Self-Involvement
Opinion Leaders Opinion Receivers
Reduce post-purchase dissonance Reduce perceived risk
Gain attention from others Reduce search and shopping time
Show off expertise
Experience “converting” others
Product Involvement
Opinion Leaders Opinion Receivers
Express satisfaction or complain about a Learn additional and more efficient ways to use products
product or service Learn about newly introduced products
Social Involvement
Opinion Leaders Opinion Receivers
Express friendship by providing others with Buy products that have the approval of others
consumption-related information
Characteristics of Opinion Leaders
• Knowledgeable in product category
• Self-confident, outgoing, sociable
• Read special-interest publications and websites
• Often same socioeconomic & age group as receivers
1. I am usually the first one in my circle of friends to know about new
technologies.
2. I know more about technologies than most people.
3. My opinions about technologies count with other people.
4. When considering buying a new technological product, people turn to me
for advice.
5. I often influence others’ opinions about technologies.
6. People know that I use the same products that I recommend.
7. I often influence people to buy the same technological products that I like.
Consumer Behaviour I RKM
Measuring Opinion Leadership
• Self-designation method
• Social interactions
• Identifying experts
• Online influence

Consumer Behaviour I RKM


Key Informants
Defined
Persons who are keenly knowledgeable about the nature of
social communications among members of a specific
group.

Consumer Behaviour I RKM


Learning Objective
 To understand word-of-mouth’s online prevalence,
strategic applications, and perils.

Consumer Behaviour I RKM


Social Networks
Defined
Virtual community where people share information about
themselves with others, generally with similar interests, with
whom they had established relationships that, for the most
part, exist only in cyberspace.

Consumer Behaviour I RKM


Engagement in W O M
• Tie strength – The degree of intimacy and frequency of
contacts between the information seeker and the source.

• Similarity – Among the group’s members in terms of


demographics and lifestyles.

• Source credibility – The information seeker’s perceptions of


the source’s expertise.

Consumer Behaviour I RKM


W O M – Top Statistics

Consumer Behaviour I RKM


Brand Community
Defined
An online community formed by consumers who share an
attachment to a brand.
Brand communities foster a feeling of belonging that transcends
geographic, linguistic, and cultural barriers.

Consumer Behaviour I RKM


Word-of-Mouth Online

Consumer Behaviour I RKM


Viral Advertising
Defined
A marketing technique that uses social networks to increase
brand awareness by encouraging individuals to pass along
online email messages or other contents.

Consumer Behaviour I RKM


Parle’s Rola Cola candy makes a
In response, consumer driven
comeback after 13 years, prompted by a
#BringRolaColaBack campaign
tweet
went viral and secured more
than 7.11 lakh impressions on
Parle Products had discontinued the Twitter - Parle Products Senior
hard-boiled candy with cola flavour in Category Head Marketing
2006 during a product rationalisation Krishna Rao
process

Consumer Behaviour I RKM


Learning Objective
To understand how consumers adopt innovations over
time.

Consumer Behaviour I RKM


Adopter Categories

Consumer Behaviour I RKM


Time to Reach Laggards
• Nature of the group involved
• Type of innovation decision required
• Extent of marketing effort
• Strength of felt need
• Compatibility with values
• Relative advantage
• Complexity
• Observability
• Ease of trial
• Perceived Risk

Consumer Behaviour I RKM


Risk Aversion
• Reluctance to take risks
• Low tolerance for ambiguity

Consumer Behaviour I RKM


Thank You

Consumer Behaviour I RKM

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