Consumer Behavior: Attitude and persuasion; decion making

1. ATTITUDES AND
PERSUASION; DECISION
MAKING
BSBA 3D MM
Abellado Ariel
Alvarez Lizel
Asuncion Katrina
Baradillo Venus Shiela

2. 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.

3. THE FUNCTIONS OF ATTITUDES
DEVELOPED 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

4. 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.

5. 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.

6. 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”

7. 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

8. THREE (3) COMPONENTS OF
ATTITUDES
Affect (Feelings)
Behavior (Actions)
Cognition
(Thoughts)

9. CONCEPT OF HIERARCHY OF
EFFECTS
 It explains the impact
of the 3 components of
ATTITUDE.
 Awareness +
Knowledge
= Cognition
 Liking + Preference
= Affect
 Conviction+ Purchase
COGNITIO
N
AFFECT
BEHAVIO
R

10. Three Hierarchies of
Effects

11. How attitudes are formed and
learned?
 The 3 increasing level of COMMITMENTS:
COMPLIANCE
IDENTIFICATI
ON
INTERNALIZATIO
N
LOWEST
LEVEL OF
INVOLVEMENT
HIGHEST
LEVEL OF
INVOLVEMENT

12. 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.

13. 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

14. 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.

15. 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.

16. 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.

17. 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.

18. Action
The 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

19. Elaboration Likelihood
Model

20. Persuasion Knowledge
Model
The persuasion knowledge model posits
that consumers develop knowledge about
persuasion and use this knowledge to respond to
persuasion experiences.

21. Attitudes
The 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.

22. Attitudes are a product of information
acquisition. That is, attitudes are learned beliefs,
feelings, and reaction tendencies.
Attitudes

23. Decision Making

24. Decision Making

25. Types of Consumer Decision

26. 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

27. Extended Decision Making
Buying Car or a House

28. 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

29. Limited Decision Making
•Vacation package
•Gifts
•Clothes
•Home furniture

30. 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.

31. Habitual Decision Making
Weekly Groceries and regular coffee order

32. Types of Information Search
 Deliberate vs. Accidental Search
 Online Search
 External Search
Variety Seeking
Brand Switching

33. How do consumer make
decision?
 Expected utility theory
consumers are rational and they have
complete information. They make choices that
maximizes their utility.

34. 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

35. 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)

36. 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

37. 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

38.  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 ….

39. 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

40. GROUP 1
BSBA 3D