Attitudes Mktg 450 Fall 2005 Slide 2 2 Subliminal? Slide 3 Fall
20053 Agenda Attitude Concept ABC Model Expectancy-Value Model
Importance-Performance Competitive Strategy Slide 4 Fall 20054 What
is an Attitude? A learned predisposition to behave in a
consistently favorable or unfavorable way with respect to a given
object. Slide 5 Fall 20055 Predisposition to Behave? Attitudes
guide our behavior Even toward novel objects But there are other
factors such as norms, personality, and situational constraints.
Slide 6 Fall 20056 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? Slide 7 Fall 20057 Consistently
favorable or unfavorable way? Attitudes reflect consistency toward
a specific object or class of objects Personality is reflected by
consistency toward different objects Slide 8 Fall 20058 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 Slide 9 Fall 20059 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 Slide 10 Fall 200510 Aromas for Young Males Slide 11
Fall 200511 Attitude toward Everything? Slide 12 Fall 200512
Tricomponential (ABC) Attitude Model Affect Beliefs Conations
Affect - Likes & Dislikes Beliefs - Has & Does not Have
Conations - Wants & Don't Wants Slide 13 Fall 200513
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 x i 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 Slide 14 Fall 200514
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. Slide 15 Fall 200515 Classify each highlighted statement as a
Belief (thoughts) Affect (feelings) Conation (actions) Slide 16
Fall 200516 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. Slide 17 Fall 200517 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.
Slide 18 Fall 200518 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. Slide 19 Fall 200519 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.
Slide 20 Fall 200520 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. Slide 21 Fall
200521 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. Slide 22 Fall 200522
Tricomponential Attitude Model Affect Beliefs Conations Affect -
Likes & Dislikes Beliefs - Has & Does not Have Conations -
Wants & Don't Wants Slide 23 Fall 200523 Expectancy Value
Attitude Model Affect Beliefs Conations Affect - Likes &
Dislikes Beliefs - Has & Does not Have Conations - Wants &
Don't Wants Slide 24 Measuring Attitudes: Expectancy-Value Attitude
Model where A o = attitude toward the object (product or person) B
i = individual's belief about the likelihood that the object has
characteristic i a i = individual's evaluation of characteristic i
Slide 25 Beliefs Probabilistic thoughts about what characteristics
are possessed by an object or person. P (Brand has characteristic x
i ) Slide 26 Beliefs B 1 What is the likelihood that Crest will
prevent cavities? Very +3 +2 +1 0 -1 -2 -3 Very Likely Unlikely B 2
What is the likelihood that Crest will whiten your teeth? Very +3
+2 +1 0 -1 -2 -3 Very Likely Unlikely Slide 27 Beliefs B 1 What is
the likelihood that Crest will prevent cavities? Very +3 +2 +1 0 -1
-2 -3 Very Likely Unlikely B 2 What is the likelihood that Crest
will whiten your teeth? Very +3 +2 +1 0 -1 -2 -3 Very Likely
Unlikely Slide 28 Evaluation of Beliefs Evaluation of beliefs
concerns whether objects or persons with these characteristics are
judged to be good or bad. Slide 29 Evaluation of Beliefs a 1 A
toothpaste that prevents cavities? Very +3 +2 +1 0 -1 -2 -3 Very
Good Bad a 2 A toothpaste that whitens your teeth? Very +3 +2 +1 0
-1 -2 -3 Very Good Bad Slide 30 Evaluation of Beliefs a 1 A
toothpaste that prevents cavities? Very +3 +2 +1 0 -1 -2 -3 Very
Good Bad a 2 A toothpaste that whitens your teeth? Very +3 +2 +1 0
-1 -2 -3 Very Good Bad Slide 31 Attitudes from Beliefs (++) B 1
What is the likelihood that Crest will prevent cavities? Very +3 +2
+1 0 -1 -2 -3 Very Likely Unlikely a 1 A toothpaste that prevents
cavities is? Very +3 +2 +1 0 -1 -2 -3 Very Good Bad Slide 32
Attitudes from Beliefs (+-) B 1 What is the likelihood that Crest
contains preservatives? Very +3 +2 +1 0 -1 -2 -3 Very Likely
Unlikely a 1 A toothpaste that contains preservatives is? Very +3
+2 +1 0 -1 -2 -3 Very Good Bad Slide 33 Attitudes from Beliefs (-+)
B 1 What is the likelihood that Crest will be inexpensive? Very +3
+2 +1 0 -1 -2 -3 Very Likely Unlikely a 1 A toothpaste that is
inexpensive is? Very +3 +2 +1 0 -1 -2 -3 Very Good Bad Slide 34
Attitudes from Beliefs (--) B 1 What is the likelihood that Crest
will have imperfections? Very +3 +2 +1 0 -1 -2 -3 Very Likely
Unlikely a 1 A toothpaste that has imperfections is? Very +3 +2 +1
0 -1 -2 -3 Very Good Bad Slide 35 Attitudes B1B1 B2B2 a1a1 a2a2 Ao
+3 Slide 36 Attitudes B1B1 B2B2 a1a1 a2a2 Ao +3 18 B 1 *a 1 B 2 *a
2 Slide 37 Attitudes B1B1 B2B2 a1a1 a2a2 Ao +3 18 +3 -3 -18 -3 +3
-18 -3 +18 Slide 38 Attitudes B1B1 B2B2 a1a1 a2a2 Ao 7777 77 11 11
77 1111 Slide 39 Attitudes B1B1 B2B2 a1a1 a2a2 Ao 777798 77 1114 11
77 11112 Slide 40 Discover Desired Features Not Provided by Product
B 1 What is the likelihood that Crest will whiten teeth? Very +3 +2
+1 0 -1 -2 -3 Very Likely Unlikely a 1 A toothpaste that whitens
teeth? Very +3 +2 +1 0 -1 -2 -3 Very Good Bad Slide 41 Extra
Whitening Crest or Dual Whitening Crest Slide 42 Fall 200542
Colgate Can Not Fall Behind Slide 43 Discover Undesirable Features
B 1 What is the likelihood that Coke is caffeinated? Very +3 +2 +1
0 -1 -2 -3 Very Likely Unlikely a 1 A caffeinated soft drink? Very
+3 +2 +1 0 -1 -2 -3 Very Good Bad Slide 44 Caffeine-free Coke Slide
45 Discover Unchangeable Features arent Desirable B 1 What is the
likelihood that Listerine has a strong taste? Very +3 +2 +1 0 -1 -2
-3 Very Likely Unlikely a 1 A strong tasting mouthwash? Very +3 +2
+1 0 -1 -2 -3 Very Good Bad Slide 46 Original Listerine
MouthwashOriginal Listerine Mouthwash has a powerful long-lasting
burst of clean, brisk flavor that tells you it is working to kill
germs. Slide 47 Fall 200547 Listerene Better Tasting Slide 48
Discover Competitors Features are not Desirable B 1 What is the
likelihood that Starbucks is bitter? Very +3 +2 +1 0 -1 -2 -3 Very
Likely Unlikely a 1 A bitter coffee? Very +3 +2 +1 0 -1 -2 -3 Very
Good Bad Slide 49 Fall 200549 Cable versus Satellite CableSatellite
Slide 50 Fall 200550 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 Slide 51 Fall 200551 Satellite TV Ad Slide 52 Fall 200552
Cable TV Ad Slide 53 Discover Competitive Parity B 1 What is the
likelihood that Lexus is a reliable car? Very +3 +2 +1 0 -1 -2 -3
Very Likely Unlikely B 1 What is the likelihood that BMW is a
reliable car? Very +3 +2 +1 0 -1 -2 -3 Very Likely Unlikely a 1 A
reliable car is? Very +3 +2 +1 0 -1 -2 -3 Very Good Bad Slide 54
Fall 200554 Slide 55 Fall 200555 Match Benefits Slide 56 Fall
200556 Colgate has a Different Idea Slide 57 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! Slide 58
Fall 200558 Colgate Outdoes Crest Slide 59 Fall 200559 Colgate
Total Slide 60 Fall 200560 Healthy Teeth? Slide 61 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? Slide 62 Fall 200562 Anyone Care? Slide 63
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. Slide 64 Fall 200564 Selling Compromises Features Slide
65 Fall 200565 Importance-Performance Analysis Slide 66 Fall 200566
Using Importance-Performance with Competitors Data High Importance
Our Performance Competitors Performance Simultaneous Result Poor
Neglected Opportunity PoorGoodCompetitive Disadvantage
GoodPoorCompetitive Advantage Good Head-to-Head Competition Slide
67 Fall 200567 Using Importance-Performance with Competitors Data
Low Importance Our Performance Competitors Performance Simultaneous
Result Poor Null Opportunity PoorGoodFalse Alarm GoodPoorFalse
Advantage Good False Competition Slide 68 Fall 200568 Marketing
Warfare Slide 69 Fall 200569 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. Slide 70 Fall 200570 How
Markets Divide Themselves Leader - > 30% share Challenger -
15-30% share Flanker - 5 - 15% share Nichers - 1% or less Slide 71
Fall 200571 Carbonated Soft Drinks Brand2003 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% Slide 72 Fall 200572 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% Slide 73 Fall 200573 Coca Cola
Slide 74 Fall 200574 Leader Strategy Slide 75 Fall 200575 Leader
Defend Position ApproachExamples Adopt an Aggressive Offense
against the competition Microsoft vs Lotus & WordPerfect Slide
76 Fall 200576 Leader Defend Position ApproachExamples Adopt an
Aggressive Offense against the competition Microsoft vs Lotus &
WordPerfect Use resources to increase the cost of competition UPS
Slide 77 Fall 200577 Package Delivery Market Slide 78 Fall 200578
UPS Strategy Slide 79 Fall 200579 UPS Strategy Wanted to expand
share in Ground Deliveries Purchased Mailboxes Etc. A key point of
contact for FedEx Slide 80 Fall 200580 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.
Slide 81 Fall 200581 FedEx Research PREPAREDUNPREPARED Do Not Crave
Reassurance FrisbeeDo It Yourself Crave Reassurance ConfirmersHigh
Maintenance Slide 82 Fall 200582 FedEx Research PREPAREDUNPREPARED
Do Not Crave Reassurance Drop Box Inside Front Door Self-Service
Station at Front Crave Reassurance Feedback (put through slots)
Counter in the Back Slide 83 Fall 200583 Proposed Storefront Image
Slide 84 Fall 200584 Better Strategy Slide 85 Fall 200585
FedEx-Kinkos Slide 86 Challenger Strategy Slide 87 Fall 200587
Challenger Focus on Leader ApproachExamples Attack Leaders weakness
but narrowly Pepsi Consider turning leaders strength into weakness
Netscape Slide 88 Flanker Strategy Slide 89 Fall 200589 Flanker
Focus on Overlooked Areas ApproachExamples Segment market to
identify unmet needs Avoid direct competition with leader and
challenger Slide 90 Fall 200590 Flanker Focus on Overlooked Areas
ApproachExamples Segment market to identify unmet needs Chrysler
Avoid direct competition with leader and challenger Virgin Slide 91
Nicher Strategy Slide 92 Fall 200592 Nichers/Guerillas Find areas
not attractive to Others ApproachExamples Think smallJolt Subaru Be
prepared to quit when competition heats up Hummer Microbrews
Snapple Slide 93 Fall 200593 How Markets Divide Themselves Leader -
> 30% share Challenger - 15-30% share Flanker - 5 - 15% share
Nichers - 1% or less Slide 94 Fall 200594 Marketing Warfare Video
Games Slide 95 Fall 200595 Video Game Warfare StrengthsWeaknesses
Sony (65%) Microsoft (17%) Nintendo (15%) Slide 96 Fall 200596
Future SonyPlayStation 3March 2006 Blu-Ray DVD MicrosoftxBox 360
Nov 2005 Hard Drive Web downloads NintendoRevolutionMarch 2006
mystery features Slide 97 Fall 200597 Battle Field Slide 98 Fall
200598 Humble Beginnings 13,614 Versus 7,727 Outlets Slide 99 Fall
200599 1 st Wendys ( Columbus Ohio 1969 ) 6,000 outlets Slide 100
Fall 2005100 1 st Jack in the Box ( San Diego - 1951 ) 2,000
Outlets 17 states Slide 101 Fall 2005101 Slide 102 Fall 2005102
Constant Combat Slide 103 Fall 2005103 A Battle of Words as Well as
Food Slide 104 Fall 2005104 Fast Food Attitudes FAST FOOD CHAIN
MENU VARIETY POPULARI TY w/ Child FOOD QUALITY PRICEOVERALL PREFER
BURGER KING 2.93.83.73.83.6 JACK IN THE BOX 3.3 3.03.33.2
McDONALDS' 3.34.43.64.03.8 WENDYS 3.03.54.12.63.4 RELATIVE
IMPORTANCE WEIGHTS.22.23.30.25 Slide 105 Fall 2005105 Overall
Attitudes 3.6 = 2.9*.22 + 3.8*.23 + 3.7*.30 + 3.8*.25 Slide 106
Fall 2005106 Battle of Words & Toys McDonaldsIm Lovin ItChicken
Little (Disney) Burger KingHave It Your WayStar Wars III WendysIts
Better Here Do 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 Slide 107 Fall 2005107 McDonalds-1 Slide 108 Fall 2005108
Burger King -1 Slide 109 Fall 2005109 Burger King -2 Slide 110 Fall
2005110 Wendys Slide 111 Fall 2005111 Jack in the Box - 1 Slide 112
Fall 2005112 Battle of Words & Toys McDonaldsIm Lovin
ItIncredibles Burger KingHave It Your WaySponge Bob WendysIts
Better HereElf Jack in the Box We Dont Make It til You Order It
????? Slide 113 Fall 2005113 McDonalds ( adults ) - 2 Slide 114
Fall 2005114 McDonalds (dryer) - 3 Slide 115 Fall 2005115 Wendys
2004 Slide 116 Fall 2005116 McDonalds (Fries) Slide 117 Fall
2005117 Burger King - 2004 Slide 118 Fall 2005118 Burger King -
Ugoff Slide 119 Fall 2005119 Jack in the Box ( language ) - 2 Slide
120 Fall 2005120 JBX Slide 121 Fall 2005121 Competitive Strategy
LeaderUse strengths to defend leadership position via offensive
actions ChallengerNarrowly attack leaders weakness FlankerIdentify
unmet needs in overlooked segments (large) NicherIdentify unmet
needs in overlooked (small) segments that can be defended Slide 122
Fall 2005122 Video Game Wars Slide 123 Fall 2005123 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 Slide 124 Fall 2005124 Leader Sports Games Take Two
Dropped price of ESPN Football to $20 Electronic Arts Dropped price
of John Madden to $30 Slide 125 Fall 2005125 Leader Video Game
Units Slide 126 Fall 2005126 Leader Video Game Revenue Slide 127
Fall 2005127 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 Slide 128 Fall
2005128 Challenger Miller Lite Slide 129 Fall 2005129 Flanker
Wendys Slide 130 Fall 2005130 Nicher Jones Soda
