Attitudes

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Attitudes

• Mktg 450
• Fall 2005

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Subliminal?
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Agenda

• Attitude Concept ABC Model
• Expectancy-Value Model
• Importance-Performance
• Competitive Strategy

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What is an Attitude?

• A learned predisposition to behave in a
  consistently favorable or unfavorable way with
  respect to a given object.

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Predisposition to Behave?

• Attitudes guide our behavior
• Even toward novel objects
• But there are other factors such as norms,
  personality, and situational constraints.

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Consistently favorable or unfavorable way?

• As was true with personality, we look to
  consistency to determine the nature of the
  predisposition
• What is the difference between an attitude and a
  personality trait?

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Consistently favorable or unfavorable way?

• Attitudes reflect consistency toward a specific
  object or class of objects
• Personality is reflected by consistency toward
  different objects

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With respect to a given object?

• We dont just have an attitude
• It is always an attitude toward something
• An object, a person, an activity, an idea

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Marketers Interest in Attitudes

• Analyze current products
• Identify dislikes about products
• Develop new, improved versions
• Analyze communications
• Select copy points that
• Highlight the products strengths
• Minimize the products weaknesses

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Aromas for Young Males
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Attitude toward Everything?
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Tricomponential (ABC) Attitude Model
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Tricomponential Attitude Model

• Affect (emotions) likes dislikes
• I like sweet drinks, I dont like sugarfree
  drinks
• Beliefs (cognitions) association of
  characteristics with some object
• Object Y has characteristic xi
• Coca Cola comes in a red can is highly
  carbonated
• Conations (intentions) wants dont wants
• I want a new coat I dont want to eat at
  McDonalds

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CLASSIFYING ATTITUDES

• . . . I knew that I would be needing a second
  car. My eldest boy just turned 16 and we only
  had a station wagon. As it was, my wife and I
  had to share that car.
• I wanted a car with lots of head room. My
  neighbor had a Ford Taurus and it had lots of
  head room. I like that. So on a Saturday
  morning we went to several dealers to look at
  cars -- GM and Fords. I wasn't going to buy a
  Chrysler because I had a bad experience with one
  in the sixties. I promised myself then that I
  would never buy another one and I never have.

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• Classify each highlighted statement as a
• Belief (thoughts)
• Affect (feelings)
• Conation (actions)

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CLASSIFYING ATTITUDES

• . . . I knew that I would be needing a second
  car. My eldest boy just turned 16 and we only
  had a station wagon. As it was, my wife and I
  had to share that car.
• I wanted a car with lots of head room. My
  neighbor had a Ford Taurus and it had lots of
  head room. I like that. So on a Saturday
  morning we went to several dealers to look at
  cars -- GM and Fords. I wasn't going to buy a
  Chrysler because I had a bad experience with one
  in the sixties. I promised myself then that I
  would never buy another one and I never have.

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CLASSIFYING ATTITUDES

• . . . I knew that I would be needing a second
  car. My eldest boy just turned 16 and we only
  had a station wagon. As it was, my wife and I
  had to share that car.
• I wanted a car with lots of head room. My
  neighbor had a Ford Taurus and it had lots of
  head room. I like that. So on a Saturday
  morning we went to several dealers to look at
  cars -- GM and Fords. I wasn't going to buy a
  Chrysler because I had a bad experience with one
  in the sixties. I promised myself then that I
  would never buy another one and I never have.

18
CLASSIFYING ATTITUDES

• . . . I knew that I would be needing a second
  car. My eldest boy just turned 16 and we only
  had a station wagon. As it was, my wife and I
  had to share that car.
• I wanted a car with lots of head room. My
  neighbor had a Ford Taurus and it had lots of
  head room. I like that. So on a Saturday
  morning we went to several dealers to look at
  cars -- GM and Fords. I wasn't going to buy a
  Chrysler because I had a bad experience with one
  in the sixties. I promised myself then that I
  would never buy another one and I never have.

19
CLASSIFYING ATTITUDES

• . . . I knew that I would be needing a second
  car. My eldest boy just turned 16 and we only
  had a station wagon. As it was, my wife and I
  had to share that car.
• I wanted a car with lots of head room. My
  neighbor had a Ford Taurus and it had lots of
  head room. I like that. So on a Saturday
  morning we went to several dealers to look at
  cars -- GM and Fords. I wasn't going to buy a
  Chrysler because I had a bad experience with one
  in the sixties. I promised myself then that I
  would never buy another one and I never have.

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• We looked at a lot of cars that morning. I found
  out that the Mercury Sable and the Taurus had
  virtually the same engines and frames, but I
  still liked the Taurus better. We also decided
  that we liked the Sports option that made the car
  looked better. Our station wagon was a dull car.

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• We looked at a lot of cars that morning. I found
  out that the Mercury Sable and the Taurus had
  virtually the same engines and frames, but I
  still liked the Taurus better. We also decided
  that we liked the Sports option that made the car
  looked better. Our station wagon was a dull
  car.
• One day about a week later, my son came home and
  said that he had seen just the car we wanted. It
  had bucket seats and everything else we wanted.
  It had bucket seats -- in fact, it turned out
  that is all it had.

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Tricomponential Attitude Model
Conations
Affect
Beliefs
Affect - Likes Dislikes
Beliefs - Has Does not Have
Conations - Wants Don't Wants
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Expectancy Value Attitude Model
Conations
Affect
Beliefs
Affect - Likes Dislikes
Beliefs - Has Does not Have
Conations - Wants Don't Wants
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Measuring AttitudesExpectancy-Value Attitude
Model
where Ao attitude toward the object
(product or person) Bi individual's belief
about the likelihood
that the object has characteristic i ai
individual's evaluation of characteristic i
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Beliefs

• Probabilistic thoughts about what characteristics
  are possessed by an object or person.
• P (Brand has characteristic xi)

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Beliefs
B1 What is the likelihood that Crest will
prevent cavities? Very 3 2
1 0 -1 -2 -3
VeryLikely
Unlikely
B2 What is the likelihood that Crest will
whiten your teeth? Very 3 2
1 0 -1 -2 -3
VeryLikely
Unlikely
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Beliefs
B1 What is the likelihood that Crest will
prevent cavities? Very 3 2
1 0 -1 -2 -3
VeryLikely
Unlikely
B2 What is the likelihood that Crest will
whiten your teeth? Very 3 2
1 0 -1 -2 -3
VeryLikely
Unlikely
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Evaluation of Beliefs

• Evaluation of beliefs concerns whether objects or
  persons with these characteristics are judged to
  be good or bad.

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Evaluation of Beliefs
a1 A toothpaste that prevents cavities?
Very 3 2 1 0 -1
-2 -3 VeryGood

Bad a2 A toothpaste that
whitens your teeth? Very 3 2
1 0 -1 -2 -3
VeryGood
Bad
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Evaluation of Beliefs
a1 A toothpaste that prevents cavities?
Very 3 2 1 0 -1
-2 -3 VeryGood

Bad a2 A toothpaste that
whitens your teeth? Very 3 2
1 0 -1 -2 -3
VeryGood
Bad
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Attitudes from Beliefs ()
B1 What is the likelihood that Crest will
prevent cavities? Very 3 2
1 0 -1 -2 -3
VeryLikely
Unlikely a1
A toothpaste that prevents cavities is?
Very 3 2 1 0 -1
-2 -3 VeryGood

Bad
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Attitudes from Beliefs (-)
B1 What is the likelihood that Crest contains
preservatives? Very 3 2
1 0 -1 -2 -3
VeryLikely
Unlikely a1
A toothpaste that contains preservatives
is? Very 3 2 1 0
-1 -2 -3 VeryGood

Bad
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Attitudes from Beliefs (-)
B1 What is the likelihood that Crest will be
inexpensive? Very 3 2 1
0 -1 -2 -3 VeryLikely

Unlikely a1 A
toothpaste that is inexpensive is? Very
3 2 1 0 -1 -2
-3 VeryGood

Bad
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Attitudes from Beliefs (--)
B1 What is the likelihood that Crest will have
imperfections? Very 3 2
1 0 -1 -2 -3
VeryLikely
Unlikely a1
A toothpaste that has imperfections is?
Very 3 2 1 0 -1
-2 -3 VeryGood

Bad
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Attitudes
B1 B2 a1 a2 Ao
3 3 3 3



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Attitudes
B1a1
B1 B2 a1 a2 Ao
3 3 3 3 18



B2a2
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Attitudes
B1 B2 a1 a2 Ao
3 3 3 3 18
3 3 -3 -3 -18
-3 -3 3 3 -18
-3 -3 -3 -3 18
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Attitudes
B1 B2 a1 a2 Ao
7 7 7 7
7 7 1 1
1 1 7 7
1 1 1 1
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Attitudes
B1 B2 a1 a2 Ao
7 7 7 7 98
7 7 1 1 14
1 1 7 7 14
1 1 1 1 2
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Discover Desired Features Not Provided by Product
B1 What is the likelihood that Crest will
whiten teeth? Very 3 2 1
0 -1 -2 -3 VeryLikely

Unlikely a1 A
toothpaste that whitens teeth? Very 3
2 1 0 -1 -2 -3
VeryGood
Bad


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Extra Whitening Crest or Dual Whitening Crest
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Colgate Can Not Fall Behind
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Discover Undesirable Features
B1 What is the likelihood that Coke is
caffeinated? Very 3 2 1
0 -1 -2 -3 VeryLikely

Unlikely a1 A
caffeinated soft drink? Very 3
2 1 0 -1 -2 -3
VeryGood
Bad

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Caffeine-free Coke
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Discover UnchangeableFeatures arent Desirable
B1 What is the likelihood that Listerine has a
strong taste? Very 3 2 1
0 -1 -2 -3 VeryLikely

Unlikely a1 A strong
tasting mouthwash? Very 3 2
1 0 -1 -2 -3
VeryGood
Bad

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Original Listerine
Original Listerine Mouthwash has a powerful
long-lasting burst of clean, brisk flavor that
tells you it is working to kill germs.
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Listerene Better Tasting
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Discover Competitors Features are not Desirable
B1 What is the likelihood that Starbucks is
bitter? Very 3 2 1 0
-1 -2 -3 VeryLikely

Unlikely a1 A bitter
coffee? Very 3 2 1 0
-1 -2 -3 VeryGood

Bad

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Cable versus Satellite
Cable Satellite

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Cable versus Satellite
Cable(as described in satellite ads) Satellite (as described in cable ads)
Constant price increases Poor service Bad picture No local stations Works on only a few sets in a house Affected by weather Ugly dish on side of house
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Satellite TV Ad
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Cable TV Ad
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Discover Competitive Parity

• B1 What is the likelihood that Lexus is a
  reliable car?
• Very 3 2 1 0 -1
  -2 -3 VeryLikely
  
  Unlikely
• B1 What is the likelihood that BMW is a
  reliable car?
• Very 3 2 1 0 -1
  -2 -3 VeryLikely
  
  Unlikely
• a1 A reliable car is?
• Very 3 2 1 0 -1
  -2 -3 VeryGood
  
  Bad

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(No Transcript)
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Match Benefits
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Colgate has a Different Idea
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Multi-Care Crest

• Fights cavities.
• Protects against acids that cause cavities.
• Fights tartar build-up above the gum-line.
• Foaming action helps carry protection to entire
  surface of teeth.
• Leaves a long lasting clean feel.
• Baking Soda that leaves teeth feeling slick and
  smooth.
• Leaves breath feeling refreshed.
• . . .All in One Toothpaste!

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Colgate Outdoes Crest
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Colgate Total
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Healthy Teeth?
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Implications from Attitudes

1. Emphasize features desired by consumers
2. Alter or drop features not desired
3. Make existing features more desirable
4. Make competitors features less desirable
5. Create new features
6. Do Features Matter?

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Anyone Care?
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Implications from Attitudes

1. Emphasize features desired by consumers
2. Alter or drop features not desired
3. Make existing features more desirable
4. Make competitors features less desirable
5. Create new features
6. Do Features Matter?
7. Avoid Compromise Features.

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Selling Compromises Features
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Importance-Performance Analysis
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Using Importance-Performance with Competitors
Data High Importance
Our Performance Competitors Performance Simultaneous Result
Poor Poor Neglected Opportunity
Poor Good Competitive Disadvantage
Good Poor Competitive Advantage
Good Good Head-to-Head Competition
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Using Importance-Performance with Competitors
Data Low Importance
Our Performance Competitors Performance Simultaneous Result
Poor Poor Null Opportunity
Poor Good False Alarm
Good Poor False Advantage
Good Good False Competition
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Marketing Warfare
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Basic Assumptions

• Markets are competitive
• Competitors are rarely of equal strength
• Competitive strategy is dictated by ones
  relative strength
• Proper deployment of assets is key to success
• I.e., what you do with your assets is as
  important as the strength of your assets.

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How Markets Divide Themselves

• Leader - gt 30 share
• Challenger - 15-30 share
• Flanker - 5 - 15 share
• Nichers - 1 or less

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Carbonated Soft Drinks
Brand 2003 Share
Coke Classic (Coke) 18.6
Pepsi (Pepsi) 11.9
Diet Coke (Coke) 9.4
Mt Dew (Pepsi) 6.3
Sprite (Coke) 5.9
Diet Pepsi (Pepsi) 5.8
Dr Pepper (Cadbury) 5.7
CF Diet Coke (Coke) 1.7
Sierra Mist (Pepsi) 1.4
Seven Up (Cadbury) 1.2
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Carbonated Beverage Market
Company 2003 Share
Coke 44.1
Pepsi 31.8
Cadbury 14.3
Cott 4.7
National Beverage 2.4
Red Bull 0.2
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Coca Cola
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Leader Strategy
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Leader Defend Position
Approach Examples
Adopt an Aggressive Offense against the competition Microsoft vs Lotus WordPerfect

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Leader Defend Position
Approach Examples
Adopt an Aggressive Offense against the competition Microsoft vs Lotus WordPerfect
Use resources to increase the cost of competition UPS
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Package Delivery Market
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UPS Strategy
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UPS Strategy

• Wanted to expand share in Ground Deliveries
• Purchased Mailboxes Etc.
• A key point of contact for FedEx

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FedEx Initially Tried to Remake Itself

• Consumer research reveals that consumers have 2
  key considerations when using the FedEx dropoff
  sites
• Prepared knows how the system works and need
  little assistance
• Assurance how likely is that this transaction
  will be completed as I want it to.

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FedEx Research
PREPARED UNPREPARED
Do Not Crave Reassurance Frisbee Do It Yourself
CraveReassurance Confirmers HighMaintenance
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FedEx Research
PREPARED UNPREPARED
Do Not Crave Reassurance Drop Box Inside Front Door Self-ServiceStation at Front
CraveReassurance Feedback(put through slots) Counter in the Back
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Proposed Storefront Image
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Better Strategy
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FedEx-Kinkos
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Challenger Strategy
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Challenger Focus on Leader
Approach Examples
Attack Leaders weaknessbut narrowly Pepsi
Consider turning leadersstrength into weakness Netscape
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Flanker Strategy
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Flanker Focus on Overlooked Areas
Approach Examples
Segment market to identify unmet needs
Avoid direct competition with leader and challenger
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Flanker Focus on Overlooked Areas
Approach Examples
Segment market to identify unmet needs Chrysler
Avoid direct competition with leader and challenger Virgin
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Nicher Strategy
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Nichers/Guerillas Find areas not attractive to
Others
Approach Examples
Think small JoltSubaru
Be prepared to quit when competition heats up HummerMicrobrewsSnapple
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How Markets Divide Themselves

• Leader - gt 30 share
• Challenger - 15-30 share
• Flanker - 5 - 15 share
• Nichers - 1 or less

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Marketing Warfare Video Games
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Video Game Warfare
Strengths Weaknesses
Sony (65)
Microsoft (17)
Nintendo (15)
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Future
Sony PlayStation 3 March 2006Blu-Ray DVD
Microsoft xBox 360 Nov 2005 Hard DriveWeb downloads
Nintendo Revolution March 2006mystery features
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Battle Field
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Humble Beginnings
13,614 Versus 7,727 Outlets
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1st Wendys (Columbus Ohio 1969)
6,000 outlets
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1st Jack in the Box(San Diego - 1951)
2,000 Outlets 17 states
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(No Transcript)
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Constant Combat
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A Battle of Words as Well as Food
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Fast Food Attitudes
FAST FOODCHAIN MENUVARIETY POPULARITY w/ Child FOOD QUALITY PRICE OVERALLPREFER
BURGER KING 2.9 3.8 3.7 3.8 3.6
JACK IN THE BOX 3.3 3.3 3.0 3.3 3.2
McDONALDS' 3.3 4.4 3.6 4.0 3.8
WENDYS 3.0 3.5 4.1 2.6 3.4
RELATIVE IMPORTANCE WEIGHTS .22 .23 .30 .25
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Overall Attitudes
3.6 2.9.22 3.8.23 3.7.30 3.8.25
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Battle of Words Toys
McDonalds Im Lovin It Chicken Little(Disney)
Burger King Have It Your Way Star Wars III
Wendys Its Better HereDo Wendys. Do What Tastes Right Maya Miguel (PBS KIDS GO!)
Jack in the Box We Dont Make It til You Order It Not for Kids
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McDonalds-1
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Burger King -1
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Burger King -2
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Wendys
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Jack in the Box - 1
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Battle of Words Toys
McDonalds Im Lovin It Incredibles
Burger King Have It Your Way Sponge Bob
Wendys Its Better Here Elf
Jack in the Box We Dont Make It til You Order It ?????
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McDonalds (adults) - 2
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McDonalds (dryer) - 3
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Wendys 2004
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McDonalds (Fries)
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Burger King - 2004
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Burger King - Ugoff
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Jack in the Box (language) - 2
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JBX
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Competitive Strategy
Leader Use strengths to defend leadership position via offensive actions
Challenger Narrowly attack leaders weakness
Flanker Identify unmet needs in overlooked segments (large)
Nicher Identify unmet needs in overlooked (small) segments that can be defended
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Video Game Wars
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Leader Sports Games

• Electronic Arts (63 share in sports)
• John Madden NFL Football
• Tiger Woods Golf
• MBAs focus groups
• Take Two (Grand Theft Auto)
• ESPN Football (dropped price to 20)
• Outlaw Golf (tattooed convicts bikini clad
  women)
• Sex and Violence crazed developers

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Leader Sports Games

• Take Two
• Dropped price of ESPN Football to 20
• Electronic Arts
• Dropped price of John Madden to 30

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Leader Video Game Units
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Leader Video Game Revenue
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Leader Sports Games

• Electronic Arts
• Paid for 400 million for exclusive NFL rights (5
  years)
• Paid for 800 million for exclusive ESPN
  rights(15 years)
• Deals with NCAA and Arena Football League
• Take Two ?
• Deal with Major League Baseball
• Others?
• Sony created fictional football game with players
  engaged in edgy off-field activities (gambling)
  not permitted by NFL

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Challenger Miller Lite
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Flanker Wendys
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Nicher Jones Soda
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To Persuasion
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Nicher - Taco Bell(Think Outside the Bun)
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Dairy Queen(Something Different)
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Project Due Date Tuesday, December 6th

• For Tuesday, article on humor in the packet, pp.
  95-100 in the text