session 7 - consumer learning brand loyalty attitude formation and change cognitive dissonance
TRANSCRIPT
Consumer Attitude Formation and Change
Brand Loyalty & Switching Cognitive Dissonance &
Attribution Theory
Session 714th September 2010
What we have completed
• Consumer Behavior Introduction• Consumer Motivation• Market segmentation• Consumer perception• Personality and Consumer
Behavior
Classical Conditioning• Earlier it theoried that all organism
are relatively passive entities that could be taught certain behavior by repetition / conditioning e.g salivation of the dog
• However now it means that conditioning may have an ever lasting effect on the organism e.g visit to the market means headache
Learning is the process by which individuals acquire the purchase and consumption knowledge and experience that they apply to future related behavior
• Learning encompasses• Range of learning from simple almost
reflexive response to most complex concepts
• Motivation acts as a spur to learning• Degree of involvement
• Cues are the stimuli that gives direction to the motives• Cues serve to direct consumer drives
when they are consistent with consumer expectations
• Response – how individuals react to a drive or cue – how they behave – constitutes their response
Product Line, Form, Category, extensions
• Product Line Extensions• The marketer adds related products
to an already established brand, knowing that the new product is going to be accepted and adopted when it is associated with known and a trusted brand name
• Product Form Extension• Marketers also offer specialization
products like Crest toothpaste to Crest white strips
• Listerine mouthwash to Listerine paks• Ivory bath soap to liquid soap to
shower gels
• Product Category extensions• That target new market segment
• The success of product extensions depends on a number of factors• If the image of the parent brand and
the new item is logically linked to the brand – more likely to have a positive response
• The number of different products affiliated with a brand strengthens the brand name as long as the company maintains a quality image across all brand extensions
Family branding• The practice of marketing on whole
line of company products under the same brand name is another strategy that capitalizes on the consumers ability to generalize favorable brand associations from one product to another• Cambell soup company• Proctor and Gamble [P & G]• Kraft Foods
Licensing • Allowing a well known brand to be
affixed to products of another manufacturer – is the marketing strategy that operates on the principle of stimulus generalization
• The names of designers manufacturers celebrities corporations and even cartoon characters are attached for a fee to a variety of products enbling the licencees to attain instant recognition and implied quality
• Positioning• Product differentiation
Instrumental Conditioning• Instrumental Conditioning requires a
link between a stimulus and a response
• The stimulus that results in the most satisfactory response is the one that is learned
• Learning occur through a trial and error method with habits formed as a result of rewards received from certain responses or behaviors e.g child gets gifts when he/she scores
Skinner distinguished two types of reinforments
• Positive reinforcement – consists of events that strengthens the likelihood of a specific response e.g Shampoo with positive effect makes one buy
• Negative reinforcement – is an unpleasant or negative response that also serves to encourage a specific behavior e.g cream for wrinkled skin
• Forgetting and Extinction• When learned response is no longer
reinforced e.g person forgets good experience due to length of time
Strategic application of instrumental conditioning• Customer satisfaction reinforcement –
• The objective of all marketing efforts is to maximize customer satisfaction
• Relationship marketing –• Developing a closed personalised relation
with the customer
Reinforcement schedules Marketers have identified three types of reinforcements •Total or continuous reinforcement e.g Dominos Pizza promotion•Systematic fixed ratio reinforcement e.g Bigbazaar every wednesday•Random variable ratio reinforcement e.g slot machines / Gambling
• Shaping – Reinforcement performed before the desired consumer behavior actually takes place e.g increasing footfalls in a retail store
• Massed versus Distributed learning –
• Distributed Learning schedule be spread over a distributed period of time
• Massed Learning schedule be “bunched up” all at once
• Modeling or Observational Learning• Also called “vicarious learning” • Consumers often observe how others
behave in response to certain situations (stimuli) and the ensuing results (reinforcements) that occur and they imitate (model) the positively reinforced behavior when faced with similar situations
• Modeling is the process through which individuals learn behavior by observing the behavior of others and the consequences of such behavior e.g son imitates father
• Learning based on mental activity is called Cognitive Learning
• Information Processing
Definition
• An attitude is a learned predisposition to behave in a consistently favourable or unfavorable way with respect to a given object
Learned Predisposition
• It is a general agreement that attitudes are learned
• Attitudes are not synonymous to behavior
• It propels a consumer to a particular behavior
• Repels a consumer away from a particular behavior
Observations on Attitude
• Attitude are relatively consistent with the behavior they reflect
• However despite their consistency attitudes are not necessarily permanent – they do change
Object
• Object in our consumer oriented definition relates to specific consumption OR Market related concepts like• Product, Product Category, Brand• Service, Possession, product Use• Causes of issues• People, Environment, Advertisement• Price, Marketing Chain,
Attitude Formation
• How Attitudes are learned• Sources of Influence on Attitude
Formation• Impact of Personality on
Attitudes
Attitudes occur within a situation – Properties of Attributes• Favourability - • Intensity of Attitudes • Degree of Confidence in attitude
• Effect of strength of Attitude & Behavior
• Attitudes susceptibility to change• Stability
Sources of Influence on Attitude Formation
• The Formation of Attitude is strongly influenced by• Personal Direct Experience• Personal Indirect Experience• Influence of PEERS• Direct Marketing• Mass Media
Functions of Attitudes
• Utilitarian function – utility based ad e.g Allen
• Value – Expressive function – motorcycle - strong man
• Ego – Defensive function – mouthwash / pimple / dandruff
• Knowledge function – Laptops HDD Speed etc
Impact of Personality on Attitudes
• High Need for Cognition [craving for information ]
• Low need for cognition
Structural Models of Attitude
• Tri-component Attitude Model• The Multi-attribute attitude Model• The trying to consume model• The attitude towards the ad model
Tri-component Attitude Model
• The Cognitive Component [Thoughts]• The knowledge and perceptions that are
acquired by the combination of direct experience with the attitude object and related information from various sources
• The Affective Component [Feelings]• Consumers emotion and feelings about a
particular product
• The Conative Component [Actions]• The likelihood or tendency that of a specific
action or behave in a particular way
The Multi-attribute attitude Model
• The Attitude – Towards – Object –
Model
• Consumer attitude is a function of
presence or absence of certain beliefs
and evaluation of some attributes e.g
Broad band connection attributes – which
one to consider
• The – Towards – Behavior – Model
• Attitude towards the behavior
rather than the attitude towards
the object BMW vs Expensive Cars
• Theory – of – Reasoned – Action –
Model • Comprehensive integration of attitude into a structure that is designed to lead to better explanation and better prediction
of behavior. Refrigerator long term.
The Trying – To – Consume Model
• Designed to account for the many
cases in which the outcome is not
certain but instead reflects the
consumers attempts to consume
• Loose weight
The Attitude – Towards – The – Ad Model• The model depicts the consumers
various feelings and judgment as a
result of exposure to the AD.
Nature of Personality
• The Three Personality Theories• Psychoanalytic Theory OR Freud’s
Theory• Socio psychological Theory• Trait Theory
Socio psychological theory
• Complaint Move towards others they desire to loved wanted and appreciated
• Aggressive move against other, they desire to excel and win over others
• Detached move away from others
How can you predict Buyer Behavior
• Consumer innovativeness and their susceptibility to interpersonal relationship
• Cognitive Personality factors
• Brand Personality• Personal Values i.e Self Concept
and Self Images• Life style concept• AIO Activities Interests Opinions
Strategies to change Attitude• Changing the consumers basic
motivational function• Associating the product with an
admired Group or event• Resolving two conflicting attitudes• Altering components of Multi
attribute Model• Changing consumers beliefs about
competitors Brand
Changing the consumers basic motivational function• Functional Approach
• Utilitarian Function - Utility• Ego – Defensive Function – security &
Personal confidence• Value – Expressive Function – general
values, Lifestyle and Outlook• Knowledge Function – “need to know”• Combining Several Functions
Associating the product with an admired Group or event• Tatas known for their Employee
Welfare Policy
Resolving two conflicting attitudes
• Consumers are made to show their negative attitude towards a product are negated• GHARI detergent powder
ATTRIBUTE Models
• What are attribute models ?
Altering components of Multi attribute Model
• Changing the relative evaluation of attributes e.g comparative performance of Brands
• Changing Brand beliefs • Adding to attributes• Changing the overall brand rating
Changing consumers beliefs about competitors Brand• Change consumer beliefs on other
brands• All out versus Good Knight
How do we test our attributions• Distinctiveness – action occurs when the
product is present and does not occur when it is absent
• Consistency over time – the reaction would be same or almost the same
• Consistency over modality – The inference is the same even when the situation in which it occurs varies
• Consensus – the action is perceived in the same way by all consumers