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