Attitudes, Intentions, and Behavior II

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Attitudes, Intentions, and Behavior II

• MKT 750
• Dr. West

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Agenda

• Discuss the Tivo Case
• More on Attitudes
• Hierarchy of Effects
• ELM
• FCB Grid

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What is TiVos Problem?

• TiVo has amazing features, and those who own it
  love it.
• However, consumers are not aware of TiVo.
• TiVo is hard to describe and difficult to
  advertise
• It is a bundle of many functions, each of which
  may not be compelling enough to warrant adoption

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Feature Benefits
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What is TiVo?

• A super VCR
• No tape, superior recording, simplified
  programming
• A TV enhancement
• Pause live TV, skip ads
• A personal TV channel
• Reduce program overload and complexity

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Who wants TiVo?

• TV Geek -- innovator
• Busy People early adopter
• Couch Potato
• Sport Enthusiast
• People who find TV irrelevant

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Value Proposition

• Questionable value
• Why would TV watchers want control?
• Complex benefits
• Difficult to translate features into benefits
• Compatibility Concerns
• How will this work with my existing equipment?
• Standards
• Consumers maybe cautious about investing in the
  equipment without assurance that TiVo will be
  accepted

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Value Proposition

• Questionable Performance
• How well will it know my preferences?
• Multiple viewers within a household?
• Privacy Issue
• How will the information be used within TiVo?
• How will the information be used outside the
  system?

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Value Chain Impact

• Before After
• Advertisers Advertisers
• Networks Networks
• Cable Satellite Cable Satellite
• Consumers
• Consumers

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Proposed Campaign

• Product bundle with DirecTV
• Price 399 for 30-hour recorder, monthly fee
• Place same
• Promotion lifestyle commercials and print ads
• Focused on creating awareness, interest, and
  curiosity
• Brand building with an emotional appeal through
  humor
• Time-shifting, personal TV channel to busy people

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Recommendations

• Product
• bundle with cable TV (e.g. Time Warner)
• Price
• no charge for the box, monthly fee (Roadrunner)
• Place
• direct sales for non-cable households
• Promotion
• Incentive Collaborate with cable companies and
  offer a free month trial
• Commercials Use product demonstrate advertising
  (owners outsmarting their TV)... keep the humor

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(No Transcript)
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Back to exploring attitudes
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Components of Attitudes

• Affect
• the way a consumer feels about an attitude
  object (favorable/unfavorable)
• Behavior
• the consumers intention to do something with
  regard to the attitude object
• Cognition
• refers to the beliefs (know) a consumer has
  about an attitude object.

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Theory of Reasoned ActionA Multi-Attribute
Model
(ei) (bi) (Ao) (BI) (B)
Social Norms
n Ao S bi ei SN (Fishbein Azjen) i
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The rest of the story

• Whats missing from Fishbeins Theory of
  Reasoned Action
• Attitudes F(Beliefs, Evaluations, Social
  Norms)
• Where do our attitudes come from?
• Friends and family
• Personal experience
• Observation
• Media Advertising

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Hierarchy of Effects

• High-Involvement Hierarchy
• Cognition Affect Behavior
• Low-Involvement Hierarchy
• Cognition Behavior Affect
• Experiential Hierarchy
• Affect Behavior Cognition

Know Feel Do Know
Do Feel Feel Do Know
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Exercise

• Take a out a piece of paper
• Make a quick list of investment firms that come
  to mind
• Jot down your reactions to the following ads.
• Be sure to keep your comments separate so that
  you can go back to them.

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Elaboration Likelihood Model

• Cognitive responses occur while reading,
  viewing, or listening to an ad.
• Message related thoughts
• Supporting arguments and Counterarguments
• Source-oriented thoughts
• Source Bolstering and Source Derogation
• Ad execution thoughts
• Reactions or feelings toward the ad

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Elaboration Likelihood Model

• The frequency and nature of responses determine
  whether attitude change has occurred

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Persuasive Communication
Temporary attitude shift

• Motivated to Process?
• Involvement
• Relevance, etc.

Yes
No

• Peripheral cue present?
• Source characteristics
• Visual imagery
• Executional elements

Yes
No

• Ability to Process?
• Issue familiarity
• Arousal, etc.

Yes
No
Nature of Cognitive Processing Mostly
Mostly Mostly Favorable Unfavorable Neutral
Thoughts Thoughts Thoughts
Retain Initial attitude

• Cognitive Structure Change
• New cognitions adopted
• Different responses

No
Elaboration Likelihood Model
Yes
Yes
Persuasion enduring positive attitude change
Boomerang enduring negative attitude change
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Persuasive Communication

• Elaboration Likelihood Model
• Central Route to Persuasion
• Opinions are sensitive to the strength/quality of
  information presented
• Ad providing relevant information or images will
  lead to more favorable opinions

• Motivated to Process?
• Involvement
• Relevance, etc.

Yes

• Ability to Process?
• Issue familiarity
• Arousal, etc.

Yes
Nature of Cognitive Processing Mostly
Mostly Mostly Favorable Unfavorable Neutral
Thoughts Thoughts Thoughts

• Cognitive Structure Change
• New cognitions adopted
• Different responses

Yes
Yes
Persuasion enduring positive attitude change
Boomerang enduring negative attitude change
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Persuasive Communication
Temporary attitude shift

• Motivated to Process?
• Involvement
• Relevance, etc.

Yes
No

• Peripheral cue present?
• Source characteristics
• Visual imagery
• Executional elements

Yes
No

• Ability to Process?
• Issue familiarity
• Arousal, etc.

No

• Elaboration Likelihood Model
• Peripheral Route to Persuasion
• Aad (attitude toward the ad) impacts consumers
  opinion/feelings about a product
• Cues devoid of product-relevant information
  (peripheral cues) shape consumer behavior

Retain Initial attitude
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FCB Implications for Advertising
MOTIVES FOR PURCHASING Think Feel
Insurance Sports Car High
Economy Cars Perfume Tires
Wine Credit Cards
INVOLVEMENT Medications
Sun-Tan Lotion Pizza Low Liquid
Bleach Beer Razors
Soft Drinks Paper Towels
Foote Cone Belding Grid
I II III IV
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Foote Cone Belding Grid
I
II
III
IV
Quadrant I Informational approach
emphasizing performance Quadrant II Emotional
appeals linked to self-image Quadrant III
Repetitive appeals (maintain awareness and
encourage repeat purchase) Quadrant IV Apply
classical conditioning (develop continuity
between a symbol and the product)
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Real Men of Genius

• Mr. Giant Taco Salad Inventor
• Mr. Silent Killer Gas Passer
• Mr. Fancy Coffee Shop Coffee Pourer

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Assignment

• Readings
• Chapters 8 - 9 (pp 278 - 298, 303 - 304, 316 -
  330, 333 - 337)
• Begin working with your team on identifying an ad
  campaign you want to study!