CHAPTER

SEVEN

Consumer Learning

Prepared by : -
Prof. Ashwin Santoki
“Naranlala School of Industrial Mgt. and Computer Science”
 Topics covered

1. To Understand the Process and Four Elements of Consumer

Learning.
2. To Study Behavioral Learning and Understand Its
Applications to Consumption Behavior.
3. To Study Information Processing and Cognitive Learning and
Understand Their Strategic Applications to Consumer
Behavior.
4. To Study Consumer Involvement and Passive Learning and
Understand Their Strategic Affects on Consumer Behavior.
5. To Understand How Consumer Learning and Its Results Are
Measured.
In Terms of Consumer Learning, Are These New
Products Likely to Succeed?
These Ads Might Induce Learning Due
to the Familiar Names
 Learning

• The process by which individuals acquire the

purchase and consumption knowledge and
experience that they apply to future related
behavior.
This definition of learning can be looked at more
specifically. It is important to realize that it is a
process, that it changes over time as new knowledge
and experiences are gained by the consumer. New
knowledge and experience serve as feedback to the
consumer and will influence their future behavior.
 Elements of Learning Theories

Motivation • Unfilled needs lead to motivation

Cues • Stimuli that direct motives

Response • Consumer reaction to a drive or cue

• Increases the likelihood that a response

Reinforcement will occur in the future as a result of a cue
 There are the four major elements of all
learning theories.
1. Motivation is important because it will differ from one
consumer to the next. We may all have a need, but some are
more motivated to fulfill the need versus another. Often, a
consumer does not realize they have a need.
2. A cue is the stimulus that helps direct a consumer’s motives.
They include price, styling, packaging, advertising, and store
displays.
3. A consumer will have a response to a drive or a cue. The
response is how the consumer behaves after being exposed to
a cue or developing motivation.
4. Finally, reinforcement is tied to the likelihood that the
response will occur in the future.
Two Major Learning Theories

Behavioral Learning

• Based on observable behaviors (responses)

that occur as the result of exposure to stimuli

Cognitive Learning

• Learning based on mental information

processing
• Often in response to problem solving
 Behavioral Learning

1. Classical Conditioning
2. Instrumental (Operant) Conditioning

In behavioral learning, it is classical conditioning and

instrumental conditioning that are the two most
researched, explored, and applied within consumer
behavior.
 Classical Conditioning
• A behavioral learning theory according to which a
stimulus is paired with another stimulus that elicits a
known response that serves to produce the same
response when used alone.

Many of you may be familiar with Pavlov’s dog. In this situation, Pavlov sounded
a bell, then applied meat paste to the dog’s tongue. Over time, the dog began to
associate the bell with the meat paste. Eventually, when Pavlov rang the bell,
the dog would salivate because he expected the meat paste to be applied. What
happened was learning or conditioning. The dog learned that the meat paste,
which is called the unconditioned stimulus, was associated with the bell, which
is the conditioned stimulus. He began to have a conditioned response to the bell
when he learned that the bell meant food. The experiment is provided in more
detail on the following slide.
Models of Classical Conditioning
Here is another example of how classical conditioning might work.
Why are dinner aromas an unconditioned stimulus? Why is
salivation an unconditioned response? Do you often get hungry
when you watch television?
 Discussion Questions

• For Coca-Cola or
another beverage
company:
– How have they used
classical conditioning
in their marketing?
– Identify the
unconditioned and
conditioned stimuli,
the conditioned and
unconditioned
response.
 Strategic Applications of
Classical Conditioning
• Increases the
Basic Concepts association between the
1. Repetition conditioned and
2. Stimulus unconditioned stimulus
generalization • Slows the pace of
forgetting
3. Stimulus
• Advertising wear out is a
discrimination
problem
For the association between the unconditioned and the conditioned stimuli to become
strong, the exposure to the pairing must be repeated. In addition, the repetition is
important so that the association is remembered by the subject. Of course, too much
repetition can also be a problem. Think of the ad you have just seen so many times
you feel like you can’t stand to see it again. This advertising wearout can be a big
problem for advertisers, which is why they change their ads frequently.
 Strategic Applications of
Classical Conditioning
Basic Concepts • Having the same response
1. Repetition to slightly different stimuli
• Helps “me-too” products
2. Stimulus
to succeed
generalization
• Useful in:
3. Stimulus – product extensions
discrimination – family branding
– licensing
Stimulus generalization is when a consumer applies a conditioned response
to a stimulus that is not the same but is similar to a conditioned stimuli. An
example you might recognize is when we react to someone in a certain way
because they remind us of someone we know and have interacted with
before. Stimulus generalization can be helpful as marketers extend their
product line, product form, and product category.
Which Concept of Behavioral Learning Applies
to the Introduction of These Two Products?
Stimulus Generalization
What Is the Name of the Marketing Application
Featured Here and Which Concept of
Behavioral Learning Is It Based On?
Product Category Extension
Stimulus Generalization
 Strategic Applications of
Classical Conditioning
• Selection of a specific
Basic Concepts stimulus from similar
1. Repetition stimuli
2. Stimulus • Opposite of stimulus
generalization generalization
3. Stimulus • This discrimination is the
discrimination basis of positioning which
looks for unique ways to
fill needs
Stimulus discrimination is closely linked to the concept of positioning.
Marketers want you to think of their product differently than the rest when you
are looking at the shelf in the grocery store.
 Instrumental (Operant)
Conditioning
• A behavioral theory of learning based on a trial-and-error
process, with habits forced as the result of positive experiences
(reinforcement) resulting from certain responses or behaviors.

Instrumental conditioning also requires a link between a

stimulus and a response. The difference between this and
classical conditioning is that the learned response is the one
that is most satisfactory of responses. The famous psychologist
B.F. Skinner is associated with this type of conditioning. He
pointed out that learning occurs based on rewards. Through
trial and error, consumers learn which behaviors lead to
rewards and which do not.
 A Model of Instrumental Conditioning
You can see this
consumer tried on four
brands. The first three
brands ended with no
rewards – they simply
did not fit. The final
brand, Brand D gave the
consumer the reward of
a perfect fit. The
consumer has learned
that these jeans are a
good fit and will likely
repeat this behavior the
next time they are in the
stimulus situation of
needing good-looking
jeans.
 Reinforcement of Behavior

Positive

• Positive outcome
• Strengthen likelihood

Negative

• Negative outcome
• Encourages behavior

The two types of reinforcement are positive and negative. It is important

to realize that both of these influence responses. Positive
reinforcement is a good thing that happens which rewards a behavior –
going to the gym made you feel good so you go every other day. A
negative outcome is a bad thing that happens which encourages a
behavior. You ate a donut every morning for breakfast so gained a lot of
weight over the past week. This causes you to go to the gym every other
day and to stop eating donuts.
 Reinforcement of Behavior

Extinction

• A learned response is no longer reinforced

• The link is eliminated between stimulus and reward

Forgetting

• The reinforcement is forgotten

Extinction and forgetting are easily confused. But think of

what the words mean. If the response, is forgotten it can be
brought back just by remembering. If it is extinct, it is
unlearned. The link between the stimulus and the response
is destroyed.
 Strategic Applications of
Instrumental Conditioning
1. Customer satisfaction means that each time the customer has an
experience with the product or company, there has been positive
reinforcement. This is the reason relationship marketing is so important.

2. Reinforcement schedules can vary. They can be total (or continuous)

reinforcement, systemic (fixed ratio) reinforcement, or a random (variable
ratio) reinforcement schedule. Marketers will often used random
reinforcement as a bonus for the customer and fixed reinforcement as
loyalty points or rewards.

3. Shaping occurs by having the reinforcement BEFORE the behavior occurs.

In this situation, the consumer can be given the offer of a reward before they
actually make their decision and purchase a product.

4. The final application is the choice of massed versus distributed learning.

Should the learning and the exposure to the stimuli happen in a relatively
short period of time or be drawn out? Media planners are often faced with
this decision when putting together an advertising campaign.
 Observational Learning
(modeling or vicarious
learning)
• A process by which individuals learn behavior
by observing the behavior of others and the
consequences of such behavior

Observational learning occurs NOT through responses directly

to the consumer but by observation of the behavior and responses
of others. Marketers often use role models in their advertising so
that consumers can understand the rewards of purchasing the
advertisers’ products.
 Information Processing and
Cognitive Learning
• Cognitive Learning
– Learning involves complex
mental processing of
information
– Emphasizes the role of
motivation

This is a move away from the behavioral learning theories of

classical and operant conditioning. Cognitive learning focuses
on problem solving and consumer thinking. It is closely tied to
information processing and how consumers store, retain, and
retrieve information.
Information Processing and Memory
Stores
The large blocks in this process are the three places where a consumer will
store information before processing. The sensory store is very short term; it
is where an image or sound will last for just a few minutes and then be
forgotten.

The short-term store is the stage where information is processed. Similarly

to the sensory store, it is just held for a brief time. Information will move,
through encoding, to the long-term store. Information here can last for
relatively extended periods of time.

Rehearsal, encoding, and retrieval move information from one place to the
next. Rehearsal can be done either by repeating the information or relating
it to other data. If held long enough, the information can be encoded, or
given a word or visual image to represent the object. Retention, though not
shown on this process chart, describes what happens with the information in
long-term storage. As it is retained, it is constantly organized and
reorganized. Finally, retrieval, the last stage of our process, describes how
we recover information. Situational cues are the most common reason to
retrieve information.
 Theoretical Models of Cognitive
Learning
Decision- Innovation Innovation
Generic Promotional Tricompetent Making Adoption Decision
Framework Model Model Model Model Process
Knowledge Attention Cognitive Awareness Awareness
Knowledge Knowledge
Evaluation Interest Affective Interest
Desire Evaluation Evaluation Persuasion
Behavior Action Conative Purchase Trial Decision
Postpurchase Adoption Confirmation
Evaluation

These are the major models of cognitive learning that

have been developed over the years. Although they have
different terms, they follow the same three stages of
knowledge, evaluation, and behavior.
 Involvement and Passive
Learning Topics

These are the four major topics of

involvement and passive learning.
1. Definitions and Measures of Involvement
2. Marketing Applications of Involvement
3. Central and Peripheral Routes to
Persuasion
4. Hemispheral Lateralization and Passive
Learning
 Involvement
• Degree of personal relevance that the product or purchase
holds for that customer.
• High involvement purchases are very important to the
consumer
• Low-involvement hold little relevance, have little perceived
risk, and have limited information processing

Involvement is focused on the personal relevance

a product holds for an individual. Understanding
whether a product is high or low involvement helps
the marketer with all aspects of their planning and
strategy.
 Measuring Involvement with an
Advertisement
Subjects respond to the following statements on a 7-point Likert scale ranging
from “Strongly Agree” to “Strongly Disagree.”
The message in the slogan was important to me
The slogan didn’t have anything to do with my needs
The slogan made me think about joining the military
The slogan made me want to join the military
While reading the slogan, I thought about how the military might be useful for me
The slogan did not show me anything that would make me join the military
I have a more favorable view of the military after seeing the slogan
The slogan showed me the military has certain advantages
The slogan was meaningful to me
The slogan was worth remembering
 Marketing Applications of
Involvement
• Ads in video games
• Avatars
• Sensory appeals in ads to get more attention
• Forging bonds and relationships with consumers

Marketers want consumers to be involved with their brands

and products. Advertisers are always searching for ways to
do this, including the list on this slide. Product placement is
also helpful in building involvement with a certain product.
 Central and Peripheral Routes
to Persuasion
Central route to persuasion
• For high involvement purchases
• Requires cognitive processing

Peripheral route to persuasion

• Low involvement
• Consumer less motivated to think
• Learning through repetition, visual cues, and holistic perception
When a product is of high importance, a consumer is likely to think through the
advertising and examine details and information. This is the central route to
persuasion. On the other hand, if the purchase is lower involvement, the consumer
is more likely to be persuaded by music, pictures, and short slogans in the ads.
This is the peripheral route to persuasion, which we often see for low-involvement
products, especially on television advertising.
 Hemispheral Lateralization and
Passive Learning
• Hemispheral lateralization
– Also called split-brain theory
• Left Brain
– Rational
– Active
– Realistic
• Right Brain
– Emotional
– Metaphoric
– Impulsive
– Intuitive
What Is the Name of the Learning Theory
Concept Featured in This Ad and How Is It
Applied to Air Travel?
 Hemispheric Lateralization
Both Sides of the Brain are Involved in Decision

There are researchers who prove

that learning occurs in a passive
way from watching television. A
consumer sees an ad and it is
absorbed and processed by the
right brain. Through repeated
exposure, the consumer could in
fact purchase the product without
even having a change in their
attitude. This contradicts the
models we saw in an earlier slide
where changes in affect preceded
changes in behavior. If you think
about it, this is consistent with
classical conditioning.
 How Is Passive Learning Applied to the
Promotional Appeal Featured in This Ad?
The Ad is Targeted to the Right Brain
 Measures of Consumer Learning
Brand Loyalty
• Recognition and Recall Measures
• Brand Loyalty

Recognition and recall tests determine whether

consumers remember seeing an ad and the extent to which
they can recall the ad. The researcher can use aided
recall, which would rely on recognition as opposed to
unaided recall.
 Measures of Consumer Learning
Brand Loyalty

Three groups of factors Four types of loyalty

• Personal degree of risk aversion or variety • No loyalty
seeking
• Covetous loyalty
• The brand’s reputation and availability of
substitutes • Inertia loyalty
• Social group influences • Premium loyalty

Brand Equity – the value inherent in a well-known brand name

 Measures of Consumer Learning
Brand Loyalty
Brand loyalty is also a measure of consumer learning. Ideally, it
is the outcome of learning where the consumer now knows the
best choice to make each time. Brand loyalty includes attitudes
and behaviors toward the brand. Behavior measures are
observable whereas attitudinal measures are concerned with the
consumers’ feelings about the brand. On this chart, we see an
integrated conceptual framework which views loyalty as a function
of three factors or influences upon the consumer.
These three factors can lead to the four types of loyalty including
no loyalty, covetous loyalty - which is no purchase but a strong
attachment to the brand, inertia loyalty - which is purchasing the
brand out of habit or convenience with no attachment, or premium
loyalty - which is a high attachment to the brand. Brand equity
reflects brand loyalty and together they lead to increased market
share and greater profits for the firm.
 CHAPTER
EIGHT
Consumer Attitude
Formation and Change

Prepared by : -
Prof. Ashwin Santoki
“Naranlala School of Industrial Mgt. and Computer Science”
 Learning Objectives

1. To Understand What Attitudes Are, How They Are

Learned, as Well as Their Nature and Characteristics.
2. To Understand the Composition and Scope of
Selected Models of Attitudes.
3. To Understand How Experience Leads to the Initial
Formation of Consumption-Related Attitudes.
4. To Understand the Various Ways in Which Consumers’
Attitudes Are Changed.
5. To Understand How Consumers’ Attitudes Can Lead to
Behavior and How Behavior Can Lead to Attitudes.
 Attitude

A learned predisposition to behave in a

consistently favorable or unfavorable manner
with respect to a given object.

We have attitudes toward many things – to people,

products, advertisements, ideas, and more. For the most
part, these attitudes have been learned and guide our
behavior toward the object
 What Are Attitudes?

• The attitude “object” - the object which we are discussing

or measuring the attitude toward. Is it a product category,
a specific brand, or a particular model?
• Attitudes are a learned predisposition - the agreement
among researchers that attitudes are learned, either
through direct experience or from others
• Attitudes have consistency - Attitudes are consistent, they
are not necessarily permanent and can change over time
• Attitudes occur within a situation - think about the times
you have to eat foods that are not necessarily your favorite
but they are what is available or what you are being served
at a friend’s house.
What Information Does This Ad Provide to Assist
Consumers in Forming Attitudes Toward
the Saturn Vue Hybrid?
 It is Stylish, Safe, and
Good for the Environment
 Structural Models of Attitudes

• Tricomponent Attitude Model

• Multiattribute Attitude Model
• The Trying-to-Consume Model
• Attitude-Toward-the-Ad Model
A Simple Representation of the Tricomponent
Attitude Model

The tricomponent attitude

Cognition model has three
components, as seen on this
figure – the cognitive,
affective, and conative
components
 The Tricomponent Model

Components The knowledge and

perceptions that are
• Cognitive acquired by a combination
of direct experience with
• Affective the attitude object and
related information from
• Conative various sources

The cognitive component is what you know or think about an

object. This can be formed through direct experience or what you
learn from others. The knowledge you form becomes a belief.
 The Tricomponent Model

Components A consumer’s
emotions or feelings
• Cognitive about a particular
• Affective product or brand

• Conative

How you feel about a brand, the emotions you have toward
it, constitutes the affective component of the model. These
feelings often tend to be overall good or bad feelings.
 The Tricomponent Model

The likelihood or tendency

Components that an individual will
undertake a specific action or
• Cognitive behave in a particular way
with regard to the attitude
• Affective object

• Conative
The conative component describes the likelihood that you will
do something in regard to the object. One of the most
important is your intention to buy a certain object.
 Attitude models that
examine the
Multiattribute composition of
Attitude consumer attitudes
Models in terms of selected
product attributes or
beliefs.
 Multiattribute Attitude Models

Types • Attitude is function of the

• The attitude-toward- presence of certain beliefs
or attributes.
object model • Useful to measure attitudes
• The attitude-toward- toward product and service
behavior model categories or specific
brands.
• Theory-of-reasoned-
action model
According to the attitude-toward-object model, consumers will like a brand or
product that has an adequate level of attributes that the consumer thinks are
positive. For example, if you are buying a home, there is a list of attributes that the
home must have – 2 bedrooms, 2 bathrooms, air conditioning, and a back yard.
With this model, an attitude is positive for the house that has the most of these
attributes.
 Multiattribute Attitude Models

Types • Is the attitude toward

• The attitude-toward- behaving or acting with
respect to an object, rather
object model
than the attitude toward
• The attitude-toward- the object itself
behavior model • Corresponds closely to
• Theory-of-reasoned- actual behavior
action model
Instead of asking people what product they like and have positive
attitudes toward, the attitude-toward-behavior model is based on
how positive someone's attitude is toward acting a certain way, for
instance purchasing a certain brand. The question is now how likely
are you to purchase brand X rather than how highly do you rate brand
X.
Consumer Characteristics, Attitude,
and Online Shopping
 Multiattribute Attitude Models

Types
• Includes cognitive, affective,
and conative components
• The attitude-toward-
• Includes subjective norms
object model in addition to attitude
• The attitude-toward-
behavior model
• Theory-of-reasoned-
action model
Like other models, the theory of reasoned action has the three
components, cognitive (think), affective (feel), and conative (do).
In this model, we also need to understand subjective norms or how
a consumer is influenced by others.
This is a figure of the theory of reasoned action. The subjective norms that are
distinctive to this model are the two lower blocks on the right. A consumer has beliefs
about what others think they should do and also have differing levels of how likely they
will follow those beliefs, also known as their motivation to comply with the referents.
This subjective norm is now combined with the consumer’s personal attitude toward a
behavior to form an intention to perform a behavior. This intention may or may not lead
to the actual behavior.

A Simplified Version of the

Theory of Reasoned Action
 Theory of Trying to Consume

An attitude theory designed to account for the

many cases where the action or outcome is
not certain but instead reflects the consumer’s
attempt to consume (or purchase).

The theory of trying to consume addresses the fact that many

people may want to purchase but in many cases they cannot. This
may occur for personal reasons, such as not having enough money,
or environmental reasons, such as not being able to go to a
particular store.
Selected Examples of Potential Impediments
That Might Impact Trying
POTENTIAL PERSONAL IMPEDIMENTS
• “I wonder whether my hair will be longer by the time of my wedding.”
• “I want to try to lose two inches off my waist by my birthday.”
• “I’m going to try to get tickets for the Rolling Stones concert for our anniversary.”
• “I’m going to attempt to give up smoking by my birthday.”
• “I am going to increase how often I run two miles from three to five times a week.”
• “Tonight, I’m not going to have dessert at the restaurant.”

POTENTIAL ENVIRONMENTAL IMPEDIMENTS

• “The first 1,000 people at the baseball game will receive a team cap.”
• “Sorry, the car you ordered didn’t come in from Japan on the ship that docked
yesterday.”
• “There are only two cases of chardonnay in our stockroom. You better come in
sometime today.”
• “I am sorry. We cannot serve you. We are closing the restaurant because of an
electrical problem.”
 A model that proposes
that a consumer forms
various feelings (affects)
and judgments
Attitude- (cognitions) as the result
of exposure to an
Toward-the-
advertisement, which, in
Ad Model turn, affect the
consumer’s attitude
toward the ad and
attitude toward the
brand.
 A Conception of the Relationship Among
Elements in an Attitude-Toward-the-Ad Model
 Issues in Attitude Formation
• How attitudes are learned
– Conditioning and experience
– Knowledge and beliefs
Attitudes are formed through learning. Recalling the concepts of classical and
operant conditioning from earlier chapters, we recall that two stimuli can be
paired or linked together to form a learned response. In addition, consumers
can learn attitudes from rewards or outcomes from behavior.

If attitudes are learned, then it is through experiences that this learning occurs.
This can be from personal experience or from experiences with friends or
exposure to marketing influences. Another topic studied in an earlier chapter
comes into play with attitude formation. This is the consumer’s need for
cognition. People will form attitudes based on the information that best suits
them, information for the high need for cognition consumer, and images and
spokespeople for the low need for cognition.
 Issues in Attitude Formation

• Sources of influence on attitude formation

– Personal experience
– Influence of family
– Direct marketing and mass media
• Personality factors
How Does a Cents- Off Coupon Impact
Consumers’ Attitudes?
New Customers Will Try the Product,
Existing Customers will be Rewarded.
 Strategies of Attitude Change
Changing the Basic Motivational Function

Associating the Product with an Admired Group or Event

Resolving Two Conflicting Attitudes

Altering Components of the Multiattribute Model

Changing Beliefs about Competitors’ Brands

Here are five strategies for attitude change. If you think about it,
attitude change and formation are not all that different. They are
both learned, they are both influenced by personal experience,
and personality affects both of them.
Changing the Basic Motivational Function

Ego-
Utilitarian
defensive

Value-
Knowledge
expressive
• Changing the basic motivational function means to change the
basic need that a consumer is trying to fulfill. Utilitarian function
is how the product is useful to us. A marketer might want to
create a more positive attitude toward a brand by showing all it
can do. An ego-defensive function would show how the product
would make them feel more secure and confident. A value-
expressive function would more positively reflect the consumer’s
values, lifestyle, and outlook. Finally, the knowledge function
would satisfy the consumer’s “need to know” and help them
understand more about the world around them.

• It is important for marketers to realize that they might have to

combine functions because different customers are motivated to
purchase their products for different reasons. Someone might buy
a product because it tastes good and fills them up (utilitarian),
while another thinks it is low fat and will make them healthy and
therefore look better (ego-defensive).
Why and How Does This Ad Appeal to
the Utilitarian Function?
The Product is Green and Works as
Well or Better than Other Products.
Which Lifestyle- Related Attitudes Are
Expressed or Reflected in This Ad?
Healthy Eating and Snacking Lifestyle
 Attitude Change

• Altering Components of the Multiattribute

Model
– Changing relative evaluation of attributes
– Changing brand beliefs
– Adding an attribute
– Changing the overall brand rating
• Changing Beliefs about Competitors’
Brands
• If we think analytically about a multiattribute model, we realize
there are many different attributes that make up an overall attitude.
As marketers, we can change the way the consumer evaluates a
certain attribute.
• Perhaps the consumer thinks inexpensive is fine for a product, but a
marketer might be able to point out that it is often worth paying a bit
more for better quality.
• A marketer can also change the way consumers believe a brand
rates on a certain attribute. Maybe a consumer thinks a brand is
very expensive when in fact it is less expensive then several other
brands.
• There may be an attribute that does not even exist. Who thought
chewiness was an attribute that could even exist for a vitamin until
Gummy Vites came along?
• Finally, we can step away from looking individually at the attribute
and attempt to change the consumer’s overall assessment of the
brand. We can do any of these attitude change strategies by
changing beliefs of our own product or our competitor's product.
 How Is This New Benefit Likely to Impact
Consumers’ Attitudes Toward the Product?
The Consumer Will Have a More Positive
Attitude Overall from the New Attribute.
 Customer attitudes are
Elaboration changed by two
Likelihood distinctly different
Model routes to persuasion:
(ELM) a central route or a
peripheral route.
Elaboration Likelihood Model
 Elaboration Likelihood Model
On the left-hand side of the model, we see central variables
on the top and peripheral variables on the bottom.

Central variables, which lead to the central route, will be

effective on highly-motivated consumers. They will do the
thinking necessary to understand the information they are
presented.

Peripheral variables, including music, spokespeople, and

bright packaging, work on lower-involvement consumers.
Together, or alone, they create an attitude change that
results in a certain behavior
 Behavior Can Precede or Follow
Attitude Formation

Cognitive Dissonance
Attribution Theory
Theory
• Holds that discomfort • A theory concerned
or dissonance occurs with how people assign
when a consumer holds causality to events and
conflicting thoughts form or alter their
about a belief or an attitudes as an outcome
attitude object. of assessing their own
or other people’s
behavior.
• The cognitive dissonance theory occurs after the
consumer has done something, let’s say purchase a
product or accepted admission to a college. They
begin to create an attitude around their behavior
which is often based on dissonance or discomfort.

• Attribution theory is related to the question we have

after a behavior of “Why did I do that?” This process
of making inferences about behavior can lead to
attitude formation and change.
 Issues in Attribution Theory
1. Self-perception theory is the inferences or judgment as to the causes of your
behavior. Did something happen, like you won an award, because you were really
good, because the competition was weak, or because the judges were rushed? We
are constantly examining our behavior and often try to stay consistent. This is
considered the foot-in-the-door technique, the fact that if you say yes to
something, you will probably say yes to a similar act later on to remain consistent in
your behavior.

2. We have attribution toward others and always ask ourselves “why” about other’s
acts. We question their motives.

3. Would you believe we also have attribution toward things? Do you sometimes ask
yourself, “Why do I like this software or that movie so much?”

4. Over time, we like to test our attributions to see if they are correct. We may decide
that if something happens when we use this product, it has distinctiveness. We
also see if we have the same reaction to behavior over time, in different situations
(modality), and if others agree.
 CHAPTER
NINE
Communication and
Consumer Behavior

Prepared by : -
Prof. Ashwin Santoki
“Naranlala School of Industrial Mgt. and Computer Science”
Which Type of Communication Is Featured in This Ad,
and What Strategic Concept Does It Get Across?
Nonverbal Used for Positioning
 Basic Communication Model

The source, sending a message through a channel to a receiver,

most likely the consumer. The model also shows that there is
feedback from the receiver which tells the sender whether the
message was received.
 The Source as the Initiator

Formal
Communication
•Marketer or
Source organization

Informal Source
•A parent, friend or
other consumer
Informal sources have become of interest to marketers as
consumers look online to find ratings from other consumers when
taking in marketing information.
 The Source -
Impersonal and Interpersonal Communications

• Source Credibility
• Reference Groups
– Normative
– Comparative
– Membership
– Symbolic
 The Source -
Impersonal and Interpersonal Communications

A message can either be impersonal and transmitted to many or

interpersonal which involves more one-on-one communication. In
either case, it is important to consider how credible the source might
be. Are they seen as honest and objective? Are they well respected?

Reference groups are considered very credible sources since they help
define a person’s behavior. For instance, your family or friends give you
a sense of what to buy, where to eat, and the type of clothes to wear to
a given event. These are normative reference groups. Comparative
reference groups also set benchmarks but for a much narrower part of
your lifestyle. People often become members of groups, like a
fraternity, and are influenced by other members’ purchases. Finally, a
symbolic group is one in which you are not a member but take on the
values and attitudes of the group.
 The Source
Informal Sources and Word of Mouth

• Informal Sources
– Opinion leaders
• Word of Mouth and
eWOM
– Two-way communication
– Social networks
– Brand communities
– Message boards and
Blogs
 The Source
Informal Sources and Word of Mouth
Informal sources have a lot of influence on consumers because
they appear to have nothing to gain from their
recommendations. Opinion leaders tend to be category specific
and specialize in the areas in which they offer information and
advice. Word of Mouth is actually a two-way process that
commonly takes place online through social networks, brand
communities, and message boards and blogs.
 The Source
Word of Mouth – Strategic Applications

• Buzz Agents
• Viral Marketing
• Tackling negative rumors
 The Source
Word of Mouth – Strategic Applications
Marketers realize the power of word-of-mouth (WOM) but also the difficulty
in creating opinion leaders and being overly involved on WOM creation.
Their strategy so far has focused on the strategies on this slide. P&G has
been most active in the use of buzz agents, as you can see on this web link
to tremor.com.

Viral marketing has some challenges due to the mass amount of clutter in
email. Consumers get so many messages, it is often hard for them to decide
which ones are worth forwarding to their friends.

WOM has created many marketing nightmares for students. Negative

comments, or more dangerously, false rumors are very difficult for marketers
to squelch online. Some experts think it is best to ignore the rumors, while
other companies tackle them head on with statements and videos from
company executives.
 The Source
Credibility of Formal Sources
• Institutional
advertising
• Publicity
• Endorsers
Why Are Consumers Likely to Perceive
This Ad as Credible?
A Glamorous Celebrity Endorser is More Likely to be
Perceived as a Credible Source, Especially for a
Hedonistic Product.
 Credibility of Formal Sources
Endorser Effectiveness

Effectiveness is related to the message and its ease of

comprehension
Synergy between the endorser and the product types
is important.
Endorser’s demographic characteristics should be
similar to the target
Endorser credibility is not a substitute for corporate
credibility

Endorser’s words must be realistic for them

 Credibility of Formal Sources
Other Credibility Sources

Vendor Medium Effects of time

Credibility Credibility • The sleeper
• The reputation • The credibility effect
of the retailers of the phenomenon
magazine, when the
website, or consumer does
radio station not remember
the source
 Credibility of Formal Sources
Other Credibility Sources
In addition to a celebrity or spokesperson, there are
other credibility issues that affect the consumer.
Sometimes a product or brand is more credible if the
retailer or vendor is well known and trusted for buying
quality goods.
In addition, we know there are certain magazines or
other media where we can not believe a thing we read or
hear – how much credibility can your ad have when
placed in one of these media?
Finally, the credibility from a celebrity, source, or
vendor is often forgotten over time; this is known as the
sleeper effect.
The Receivers as the Target Audience

• Personal characteristics and motives

• Involvement and congruency
• Mood
• Barriers to communication
– Selective exposure to messages
– Psychological noise
 The Receivers as the Target Audience
The receiver must comprehend and decode the message. This differs based on the
issues stated on this slide. Let’s look at them individually to understand why they
are important. Each consumer is very different as described in earlier chapters.
Their personal characteristics, including personality, demographics, social groups,
and lifestyle will impact how the message is received. In addition, consumers have
different levels of motivation and involvement for different product groups and
brands. This involvement and congruency are related in determining the types of
ads consumers would prefer. A given consumer can differ in their mood when
viewing an ad, and positive moods are likely to increase a consumer’s reaction to the
ad.

Finally, there are barriers to communication that may make the message difficult to
decode. The first is that as consumers, we are bombarded with advertising
messages. Because of this clutter, we are very selective in what we allow ourselves
to be exposed to. We have pop-up blockers on our computers and caller ID on our
phones.
 Overcoming Psychological Noise

Repeating
Customized
exposure to Contrast to break
promotion
advertising through clutter
messages
messages

Offering unique
Effective
value
positioning
propositions

There are many tactics marketers can use to overcome the psychological noise
experienced by consumers. Breaking through is often done by contrast,
repeated exposure, customized messages, effective positioning, and unique
offers and benefits.
 Media (Channel)
• Mass Media
• Nontraditional (New) Media is:
Addressable

• Customized and addressed to different receivers

Interactive

• Receivers can interact with the sender

Response measurable

• Receiver's response can be measured

Mass media has been highly used by marketers over time but is quickly being
replaced by new media which are often more focused, individualized, and
targeted to the audience. The new media can be more customized, allows the
consumer to interact, and is measureable for the marketer.
 Nontraditional Media

• Out-of-home and On-the-go

– Advertising screens in buildings and transit
– Digital billboards on roads
– Ambient advertising (in new places)
• Online and Mobile
– Includes consumer-generated media
– Narrowcast messages
• Interactive TV (iTV)
 Nontraditional Media

There are three big areas of nontraditional media presented on

this slide. The first, out-of-home, includes all the posters,
billboards, and ads you see as you are walking, driving, and taking
public transportation. There are even ads placed in subway
tunnels now which give the illusion of a moving picture. The web
link on this page goes to sub-media, one of the leading firms in
this business. We are all aware of the growth in Internet and
mobile spending by marketers and the interest in getting
messages that are relevant and useful to our cell phones. Finally,
interactive TV is the goal of many advertisers where you can
interact directly with a television show and send and receive
information on related products and services.
 Media (Channel)

• Congruence with message

– Addressable advertising
– Branded entertainment
 Media (Channel)

has been found that consumers favor web sites where they receive
personalized messages, especially when they complain or need help. The
example on this slide shows an ad that moves from being more picture
oriented and a tag line that is more individualized. Addressable advertising
sends a highly customized message directly to a single viewer.

Another area where congruence with the message is an issue is with branded
entertainment, which is more commonly known as product placement.
Having the product integrated with the show and the characters builds more
awareness than other vehicles of communication.
 Designing Persuasive Communications

Message Structure • Wordplay

and Presentation • Used to create a double
• Resonance meaning when used
with a relevant picture
• Message framing
• One-Sided versus Two-
Sided Messages A message can be verbal or nonverbal.
Basically, it is the thought, idea,
• Order Effects attitude, image, or other information
that the sender wants to convey. So
how can they do it successfully, to
make it persuasive? The first thing
could be advertising resonance or
wordplay.
Which Advertising Technique Is Used
in Each Ad, and How So?
Resonance
 Designing Persuasive Communications

Message Structure • Positive framing

and Presentation • Negative framing
• Resonance
• Message framing An advertiser will often stress the
benefits to be gained by using a
• One-Sided versus Two- product. This is positive framing and
is very often used in advertising. You
Sided Messages have probably also seen examples of
negative framing where the
• Order Effects consumer is shown what they will lose
by NOT using the product.
 Designing Persuasive Communications

Message Structure Depends on nature of the

and Presentation audience and nature of
• Resonance competition
• Message framing In some instances, marketers only
present one side of the product, its
• One-Sided versus Two- benefits, and the market as opposed to
two sides. In a two-sided message, a
Sided Messages marketer might mention the competitor
• Order Effects or the risks a consumer might take with
the product. Choosing one sided over
two can be a difficult decision for
marketers and depends on whether the
audience is friendly, their educational
level, and the competitor’s current
advertising campaign.
 Designing Persuasive Communications

Message Structure • Primacy

and Presentation • Recency
• Resonance • Order of benefits
• Message framing • Brand name
• One-Sided versus Two-
Sided Messages
• Order Effects
 Designing Persuasive Communications

Advertisers are always trying to figure out if they are better off as
the first ad in a commercial break, or nearer the front of a
magazine. Research has shown that for television, the ads shown
first are recalled the best. Magazine advertisers know the covers
are the best since they are often the only parts of the magazine
seen many times by the readers.

But what about during an ad? When should the benefits be

listed, at the beginning or the end? This depends on how
interested the audience is with the ad. If interest is low, benefits
should come first. The same with brand name – it should come
first to enhance brand recall and message persuasiveness if
interest and involvement are low.
 Advertising Appeals
• Comparative
• Fear
• Humor
• Abrasive
• Sex
• Audience participation
• Timely
• Celebrities
Comparative advertising is very commonly used. Some say it helps the
viewer remember the competitor’s brand and that might reduce its
effectiveness.
Fear is effective but only if the threat is strong enough to actually make the
consumer response.
Humor is the most popular appeal because it is believed that it increases
acceptance and persuasiveness. In fact, studies show that humor attracts
attention, increases liking of the product, does not make an ad hard to
understand, and is better for low-involvement products.
Believe it or not, abrasive or unpleasant ads are sometimes effective if they
are well targeted.
Sex in advertising seems to be on the rise. They do get attention but studies
show that they rarely encourage actual consumption. In fact, these appeals
often detract consumers from the message and comprehension is reduced.
Audience participation will almost always help the receiver internalize the
information.
Appeals can also be very timely with ties into political issues or seasonal
activities.
Celebrities are also used.
Which Advertising Appeal Is Shown in
Each Ad, and Why Is It Used?
Comparative - It Has Positive Effects On Brand
Attitudes, Purchase Intentions, and Purchases
Which Two Advertising Appeals Are
Shown in This Ad?
Humor and Fear Appeal
 Types of Celebrity Appeals
Types Definition
Testimonial Based on person usage, a celebrity
attests to the quality of the product or
service
Endorsement Celebrity lends his or her name and
appears on behalf of a product or
service with which he or she may or may
not be an expert

Actor Celebrity presents a product or service

as part of a character endorsement

Spokesperson Celebrity represents the brand or

company over an extended period of
time.
 Feedback
Determining Effectiveness

Exposure • How many consumers

effects received the message?

Persuasion • Was the message received

effects and interpreted correctly?

Sales • Did the ads increase sales?

effects
 Feedback
Determining Effectiveness
• Exposure
– People meters
• Message Attention, Interpretation, and Recall
– Physiological measures
– Attitudinal measures
– Recall and recognition measures

Nielsen is a leader in measurement, including television, online, and other new

media. The persuasion effects are also hard to measure. Some marketers have
used physiological measurements, such as eye tracking and brain wave
analysis, to measure how people look at their ads. Surveys can be given to
receivers regarding their attitudes and engagement with messages, as well as
traditional recall tests, including the popular day-after recall tests.