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Attitude and persuasion; decion making

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Consumer Behavior: Attitude and persuasion; decion making

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Attitude and persuasion; decion making

  1. 1. ATTITUDES AND PERSUASION; DECISION MAKING BSBA 3D MM Abellado Ariel Alvarez Lizel Asuncion Katrina Baradillo Venus Shiela
  2. 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. 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. 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. 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. 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. 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. 8. THREE (3) COMPONENTS OF ATTITUDES Affect (Feelings) Behavior (Actions) Cognition (Thoughts)
  9. 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. 10. Three Hierarchies of Effects
  11. 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. 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. 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. 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. 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. 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. 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. 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. 19. Elaboration Likelihood Model
  20. 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. 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. 22. Attitudes are a product of information acquisition. That is, attitudes are learned beliefs, feelings, and reaction tendencies. Attitudes
  23. 23. Decision Making
  24. 24. Decision Making
  25. 25. Types of Consumer Decision
  26. 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. 27. Extended Decision Making Buying Car or a House
  28. 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. 29. Limited Decision Making •Vacation package •Gifts •Clothes •Home furniture
  30. 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. 31. Habitual Decision Making Weekly Groceries and regular coffee order
  32. 32. Types of Information Search  Deliberate vs. Accidental Search  Online Search  External Search Variety Seeking Brand Switching
  33. 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. 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. 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. 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. 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. 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. 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. 40. GROUP 1 BSBA 3D

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