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Copyright © 2019, 2015, 2010 Pearson Education, Inc.

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Copyright © 2019, 2015, 2010 Pearson Education, Inc. All Rights Reserved
Consumer Behavior
Twelfth Edition

Chapter 4
Consumer Perception and
Positioning

Copyright © 2019, 2015, 2010 Pearson Education, Inc. All Rights Reserved
Learning Objectives (1 of 2)

4.1 To understand how perception shapes sensory input


and subsequent consumer behavior.
4.2 To understand the distinction between the sensory
absolute and differential thresholds.
4.3 To understand why consumers notice some stimuli but
not others.
4.4 To understand how people organize stimuli.
4.5 To understand how consumers use integral and
external factors to evaluate products.

Copyright © 2019, 2015, 2010 Pearson Education, Inc. All Rights Reserved
Learning Objectives (2 of 2)

4.6 To understand the elements of consumer imagery.


4.7 To understand consumers’ perceived risks and how to
lower them.
4.8 To understand the process of positioning and
repositioning.

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Example: Visual Identity

Source: The Kraft Heinz Company


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Perception

• The process by which an


individual selects, organizes,
and interprets stimuli into a
meaningful and coherent
picture of the world
• Elements of Perception
– Sensation
– Absolute threshold
– Differential threshold
– Subliminal perception

Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall Chapter Six Slide 9
Sensation
Defined
The immediate and direct response of the sensory organs
to stimuli (units of input to the senses, as captured by the
sensory receptors).

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5 Sensory organs and Perception
• Sight: brand colors, store layouts, and website designs.
• Scent / Smell
• Touch
• Sound : Sound can release dopamine, improving mood and pleasure.
• Taste : salty, sweet, sour, bitter, and umami.

Impact on Culture

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Audio Sensory Input
Table 4.1 Sensory Audio Input and Product Perceptions
Product Sound and Its Consumer Meaning
Snapple Consumers perceive the sound of the “pop” as an indicator of product safety. When the
company came up with the right snap sound, it was able to eliminate the plastic seal
around the bottle’s cap.
VW Jetta The car door’s “thump” is an indication of quality. The company played and mentioned
the door thump in ads for a new model.
Mascara Consumers perceive the sound and duration of the “click” heard when taking the cover
off as indicators of quality.
Eye shadow A more pronounced “click” heard when opening the compact case symbolizes higher
quality.
Tip markers Consumers like the “screech” because it represents “boldness.”
Tampons Realizing that women dislike opening tampon packages that omit sound, P & G
redesigned the product’s packaging. The plastic’s “crinkle” was carefully balanced and
the new adhesive strip makes no sound when opened.
Spray bottle Method made the nozzle of its spray bottle almost indistinguishable because
consumers perceive a quiet nozzle as an indicator of quality.

Copyright © 2019, 2015, 2010 Pearson Education, Inc. All Rights Reserved
Absolute Threshold

• It is the lowest level at which an


individual can experience a sensation.
• Difference between
– Nothing v/s Something
Application :Consumers adapt and get used to a certain ad or
message so no longer notice it. This is one of the reasons why
advertisers change their ads frequently.

Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall Chapter Six Slide 13
Differential Threshold
(Just Noticeable Difference – j.n.d.)
• Minimal difference that can be detected
between two similar stimuli
• Weber’s law
– The j.n.d. between two stimuli is not an absolute
amount but an amount relative to the intensity of
the first stimulus
– The stronger the initial stimulus, the greater the
additional intensity needed for the second
stimulus to be perceived as different.

Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall Chapter Six Slide 14
Marketing Applications
of the J.N.D.
• Marketers need to
determine the
relevant j.n.d. for
their products
– so that negative
changes are not
readily discernible to
the public
– so that product
improvements are
very apparent to
consumers

Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall Chapter Six Slide 15
Discussion Question

• How might a cereal


manufacturer such as
Kellogg’s use the j.n.d. for
Frosted Flakes in terms of:
– Product decisions
– Packaging decisions
– Advertising decisions
– Sales promotion decisions

Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall Chapter Six Slide 16
Subliminal Perception

• Stimuli that are too weak or too brief to be


consciously seen or heard
– They may be strong enough to be perceived by
one or more receptor cells.
• Is it effective?
– Extensive research has shown no evidence that
subliminal advertising can cause behavior changes
– Some evidence that subliminal stimuli may
influence affective reactions

Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall Chapter Six Slide 17
Aspects of Perception

Selection

Organization

Interpretation

Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall Chapter Six Slide 18
Perceptual Selection
Selection Depends Upon:
Nature of the • Includes the product’s physical attributes,
package design, brand name, advertising and
stimulus more…

• Based on familiarity, previous experience or


Expectations expectations.

Motives • Needs or wants for a product or service.

Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall Chapter Six Slide 19
Why Are Consumers
Likely to Notice This Ad?

Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall Chapter Six Slide 20
The Attention-Getting Nature of a
Dramatic Image

Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall Chapter Six Slide 21
Discussion Questions

• What marketing stimuli do you remember


from your day so far?
• Why do you think you selected these stimuli
to perceive and remember?

Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall Chapter Six Slide 22
Perceptual Selection / Selective Perception
Important Concepts
Perceptual
Selective Exposure Selective Attention Perceptual Defense
Blocking
• Consumers seek • Heightened • Consumers • Consumers avoid
out messages awareness when subconsciously being bombarded
which: stimuli meet their screen out of by:
• Are pleasant needs and vice a stimuli which are • Tuning out-
• They can versa. threatening blocking such
sympathize • People also vary • Eg. Written stimuli from
• Selectively in terms of the Label on conscious
expose kinds of Cigarrere Packs. awareness
themselves to information in • Increase the • TiVo
advertisements which they are amount of • They do so out
that reassure interested and Sensory input to of self-
them of the the form of Combat PD protection,
wisdom of their message and type • Eg. PICTURE on because of the
purchase of medium they Cigarrere Packs. visually
decisions prefer. overwhelming
nature of the
world in which
we live.
Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall Chapter Six Slide 23
Perceptual Organization

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Perceptual Organization

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Perceptual Organization

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Perceptual Organization

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Perceptual Organization

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Perceptual Organization

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Perceptual Organization
• Gestalt Psychology suggests the whole is
greater than the sum of its parts, and it looks
for patterns and configurations that affect the
interpretation of information.
• Three principles that affect how patterns are
perceived:
1. Figure and ground,
2. Grouping, and
3. Closure.
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Organization

Principles
• Contrast
• Contrast between figure
• Figure and ground and ground
• Grouping • The ground is usually hazy.
• Closure • Figure is the noticed
stimuli
– E.g. Product Placement /
Branded Entertainment

Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall Chapter Six Slide 31
Which Concepts of Perception Are
Applied in These Ads?

Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall Chapter Six Slide 32
The Principle Of Contrast

Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall Chapter Six Slide 33
34
Organization

Principles

• Figure and ground • People group stimuli to


• Grouping form a unified
• Closure impression or concept.
• Grouping helps memory
and recall.
– Eg. Tea Ad.
– Family Car Ad.

Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall Chapter Six Slide 35
Organization

Principles • People have a need for


closure and organize
• Figure and ground perceptions to form a
• Grouping complete picture.
• Will often fill in missing
• Closure
pieces
• Incomplete messages
remembered more than
complete
– TV ad played on Radio ad.

Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall Chapter Six Slide 36
What Element of Perceptual
Organization Is Featured in This Ad?

Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall Chapter Six Slide 37
Closure

Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall Chapter Six Slide 38
Discussion Question

• Do you agree you remember more of what


you have NOT completed?
• How might a local bank use this in their
advertising?

Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall Chapter Six Slide 39
Perceptual Interpretation

• Individuals tend to carry


Stereotypes
Stereotypes biased picture in their
minds of the meanings
Physical Appearances
Physical Appearances
of various stimuli which
is termed as
Descriptive Terms
Descriptive Terms STEREOTPYES
First Impressions • People hold meanings
First Impressions

Halo Effect related to stimuli


Halo Effect

Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall Chapter Six Slide 40
Interpretation

• Positive attributes of
Stereotypes people they know to
Stereotypes
Physical Appearances those who resemble
Physical Appearances them
Descriptive • Important for model
DescriptiveTerms
Terms
selection
First
FirstImpressions
Impressions
Halo
HaloEffect
Effect

Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall Chapter Six Slide 41
Interpretation

• Verbal messages reflect


Stereotypes stereotypes
– FedEx
Physical Appearances – Allegis (Business concept
by combining United
Descriptive Terms airlines, Hertz, and
Hilton and Westin Hotel
First Impressions under one umbrella)

Halo Effect

Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall Chapter Six Slide 42
Interpretation

• First impressions are


Stereotypes lasting
Stereotypes
Physical Appearances • The perceiver is trying
Physical Appearances to determine which
Descriptive stimuli are relevant,
DescriptiveTerms
Terms
important, or predictive
First
FirstImpressions
Impressions
Halo
HaloEffect
Effect

Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall Chapter Six Slide 45
Interpretation

• Consumers perceive and


Stereotypes evaluate multiple
Stereotypes
Physical Appearances objects based on just
Physical Appearances one dimension
Descriptive – Product line Perception
DescriptiveTerms
Terms – Brand name or
First Spokesperson
FirstImpressions
Impressions – Licensing
Halo
HaloEffect
Effect

Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall Chapter Six Slide 46
Consumer Imagery i.e. No. of Enduring Perceptions / Images
Product Positioning
• Establishing a specific image for a brand in the
consumer’s mind in relation to competing
brands
• Conveys the product in terms of how it fulfills
a need
• Unique V/s “Me too” offerings…
• Successful positioning creates a distinctive,
positive brand image
– Different Detergent Brands used Product’s Specific Strength

Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall Chapter Six Slide 47
Packaging as a Positioning Element
• Packaging conveys the image that the brand
communicates to the buyer.
– Tide Detergent version promising stain removal comes in orange Plastic
container wt large handle.
– New Tide Total care product promising scents of fresh morning, rain & spring
day comes in Slimmer, slicker packages in bright shades of orange
– Edible oils

• Color, weight, image, and shape are all


important.
• Repositioning might be necessary because:
– Increased competition
– Changing
Copyright consumer
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Inc. Publishing as Prentice Hall Chapter Six Slide 48
Perceptual Mapping

• An analytical technique that enables


marketers to plot graphically consumers’
perceptions concerning product attributes of
specific brands

Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall Chapter Six Slide 49
Perceptual Mapping
Figure 6.9

Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall Chapter Six Slide 50
Positioning of Services

• Image is a key factor for services


• Services often want a differentiated
positioning strategy to market several
versions of their service to different markets.

Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall Chapter Six Slide 51
Which Elements of This Ad Convey the
Restaurant’s Perceptual Position and How?

Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall Chapter Six Slide 52
The Steak Knife and the Reference to Vegetarians
Convey The Position of the Restaurant as a
Well-Established Steakhouse

Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall Chapter Six Slide 53
Perceived Price and Perceived Quality

• Reference prices – used as a basis for


comparison in judging another price
– Internal
– External
• Perceived Quality of Products
– Intrinsic vs. Extrinsic Cues
color, flavor, aroma, and size
v/s
brand name, reputation, and location within store

Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall Chapter Six Slide 54
Three Pricing Strategies
Focused on Perceived Value - Table 6.4
Pricing Strategy Provides Value By… Implemented As…

Satisfaction-based Recognizing and reducing Service guarantees


pricing customers’ perceptions of Benefit-driven pricing
uncertainty, which the intangible Flat-rate pricing
nature of services magnifies
Relationship pricing Encouraging long-term Long-term contracts
relationships with the company Price bundling
that customers view as beneficial

Efficiency pricing Sharing with customers the cost Cost-leader pricing


savings that the company has
achieved by understanding,
managing, and reducing the costs
of providing the service

Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall Chapter Six Slide 55
Measuring Perceptions of
Brand Luxury

Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall Chapter Six Slide 56
Perceived Quality of Services
• Difficult due to
characteristics of
services
– Intangible
– Variable
– Perishable
– Simultaneously
Produced and
Consumed
• SERVQUAL scale used to
measure gap between
customers’ expectation
of service and
perceptions of actual
service (reliability,
responsiveness, assurance,
empathy, and tangibility)
Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall Chapter Six Slide 57
Price/Quality Relationship

The perception of price as an indicator of


product quality (e.g., the higher the price,
the higher the perceived quality of the
product.)

Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall Chapter Six Slide 58
How Can This Ad Affect the Service’s
Perceived Quality?

Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall Chapter Six Slide 59
It Uses a Process Dimension in Advertising a
Newly-Formed Business Class on an Airline

Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall Chapter Six Slide 60
Discussion Questions

• When have you used


price as an indicator
of quality?
• Were you correct?

Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall Chapter Six Slide 61
Which of the Ad’s Elements Conveys the
Product’s Quality?

Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall Chapter Six Slide 62
The Slogan on the Ad’s Bottom Left
Reads “Perfection Has Its Price”

Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall Chapter Six Slide 63
Retail Store Image

Brands Level of
Prices
carried service

Store Product
Clientele
ambiance assortment

Discounts

Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall Chapter Six Slide 64
Manufacturer’s Image

• Favorable image tied to new product


acceptance
• Companies sponsor community events to
enhance images
• Product and institutional images

Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall Chapter Six Slide 65
Perceived Risk

• The degree of uncertainty perceived by the


consumer as to the consequences (outcome) of a
specific purchase decision
• Types
– Functional Risk
– Physical Risk
– Financial Risk
– Social Risk
– Psychological Risk
– Time Risk
Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall Chapter Six Slide 66
How Consumers Handle Risk

• Seek Information
• Stay Brand Loyal
• Select by Brand Image
• Rely on Store Image
• Buy the Most Expensive Model
• Seek Reassurance

Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall Chapter Six Slide 67
All rights reserved. No part of this publication may be reproduced, stored in a
retrieval system, or transmitted, in any form or by any means, electronic,
mechanical, photocopying, recording, or otherwise, without the prior written
permission of the publisher. Printed in the United States of America.

Copyright © 2010 Pearson Education, Inc. Publishing as


Prentice Hall

Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall Chapter Six Slide 68
Consumer Behavior
Twelfth Edition

Chapter 5
Consumer Learning

Copyright © 2019, 2015, 2010 Pearson Education, Inc. All Rights Reserved
Learning Objectives

1. To Understand the Process and Four


Elements of Consumer Learning.
2. To Study Behavioral Learning and Understand
Its Applications to Consumption Behavior.
3. To Study Information Processing and
Cognitive Learning and Understand Their
Strategic Applications to Consumer Behavior.

Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall Chapter Seven Slide 2
Learning Objectives (continued)

4. To Study Consumer Involvement and Passive


Learning and Understand Their Strategic
Affects on Consumer Behavior.
5. To Understand How Consumer Learning and
Its Results Are Measured.

Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall Chapter Seven Slide 3
Learning through Ads

Source: Avocados From Mexico, Mexican Hass Avocado Importers Association


Learning through Ads

5
Learning through Ads

6
Learning through Ads

7
Learning

• The process by which individuals acquire the


purchase and consumption knowledge and
experience that they apply to future related
behavior
• Consumer Learning :
is a process that evolves and changes as
consumers acquire knowledge from
experience, observation and interactions with
others.
Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall Chapter Seven Slide 8
Learning

• Intentional v s . incidental
er us

learning
• Four elements:
– Motives
– Cues
– Responses
– Reinforcement

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Learning

• Four elements:
– Motives
– Cues
– Responses
– Reinforcement

Compare the two


introductions of
Febreze.

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Elements of Learning theory through
Advertisement

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Learning Theories Chart

Two Major Learning Theories

Behavioral Learning / Cognitive


Stimulus Response Learning Learning

Classical
Conditioning Instrumental/ Modeling /
Operant Observational
Conditioning learning

12
Two Major Learning Theories

Behavioral Learning Cognitive Learning

• Based on • Learning based on


observable mental
behaviors information
(responses) that processing
occur as the result • Often in response
of exposure to to problem solving
stimuli

Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall Chapter Seven Slide 13
Behavioral Learning

• Classical Conditioning
• Instrumental (Operant) Conditioning

Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall Chapter Seven Slide 14
Classical
Conditioning
• Russian Physiologist- Ivan Pavlov
• A behavioral learning theory according
to which a stimulus is paired with
another stimulus that elicits a known
response that serves to produce the
same response when used alone.

Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall Chapter Seven Slide 15
Models of Classical Conditioning
Figure 5.3 a

Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall Chapter Seven Slide 16
Figure 5.3 b

Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall Chapter Seven Slide 17
Strategic Applications of
Classical Conditioning
• Increases the strength of
Basic Concepts association between the
• Repetition conditioned and
unconditioned stimulus
• Stimulus • Slows the pace of forgetting
generalization • Advertising wear-out :
• Stimulus Attention- retention decline
– Diff. advt. with same message
discrimination or theme
• Three Hit theory
– Aware
– Relevance
– Remind Benefits
Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall Chapter Seven Slide 19
Why Did Gillette Use
Two Different Ads to Advertise
the Same Product?

Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall Chapter Seven Slide 20
Repetition of the Message with Varied Ads
Results in More Information Processing
by the Consumer

Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall Chapter Seven Slide 21
Stimulus Generalization

• Product line extensions


• Product form extensions
• Family branding
• Licensing

Source: Procter & Gamble Co.

Copyright © 2019, 2015, 2010 Pearson Education, Inc. All Rights Reserved
Top Licensing Companies

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Strategic Applications of
Classical Conditioning
Basic Concepts
• Selection of a specific
stimulus from similar
• Repetition stimuli
• Stimulus • Opposite of stimulus
generalization generalization
• Stimulus • This discrimination is
discrimination the basis of positioning
which looks for unique
ways to fill needs

Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall Chapter Seven Slide 24
Stimulus Discrimination

• Brand differentiation
• Market leaders want consumers to distinguish between
products and imitators
• Relevant, meaningful, valuable differentiation
Instrumental (Operant)
Conditioning
• American Psychologist B. F. Skinner-
Skinner box
• A behavioral theory of learning based
on a trial-and-error process, with
habits forced as the result of rewards
received for certain responses or
behavior.

Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall Chapter Seven Slide 26
A Model of Instrumental Conditioning
Figure 7.9

Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall Chapter Seven Slide 27
Reinforcement of Behavior

Positive Negative

• Positive • Negative
outcome, outcome,
Reward Removal of the
• Strengthen unpleasant
likelihood stimuli
• Encourages
behavior
Negative reinforcement and punishment
Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall Chapter Seven Slide 28
Reinforcement of Behavior

Extinction Forgetting

• A learned • The
response is no reinforcement is
longer reinforced forgotten over a
• The link is passage of time
eliminated also called as
between Decay
stimulus and
reward

Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall Chapter Seven Slide 29
Strategic Applications of
Instrumental Conditioning-4
1. Customer Satisfaction (Reinforcement)
– Frequent shopper programs
– Relationship Marketing
2. Reinforcement Schedules
– Continuous/Total reinforcement,
– Fixed ratio/ System reinforcement
– variable ratio/Random reinforcement

Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall Chapter Seven Slide 30
Reinforcement Schedules (2 of 2)

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Strategic Applications of
Instrumental Conditioning (contd..)
3. Shaping- occurs by having the reinforcement
BEFORE the behavior occurs
– Loss leaders
4. Massed versus Distributed Learning
– Massed : Produce more initial learning, Immediate
learning
– Distributed : learning Lasts longer, Long term repeat
buying on regular basis

Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall Chapter Seven Slide 32
Observational Learning
(modeling or vicarious
learning)
• A process by which individuals
learn behavior by observing the
behavior of others and the
consequences of such behavior

Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall Chapter Seven Slide 33
Information Processing and
Cognitive Learning
• Cognitive Learning
– Learning involves
complex mental
processing of
information
– Emphasizes the role
of motivation

Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall Chapter Seven Slide 34
Memory

Data Input

Encoding
• Long Term
• Working Memory (LTM)
• Sensory Store Memory Short
term
Memory(STM)
Rehearsal Retrieval

Forgotten Forgotten Forgotten


/Lost /Lost /Lost
Theoretical Models of Cognitive
Learning - Table 7.1

Decision- Innovation Innovation


Generic Promotional Tricompetent Making Adoption Decision
Framework Model Model Model Model Process
Knowledge Attention Cognitive Awareness Awareness
Knowledge Knowledge
Evaluation Interest Affective Interest
Desire Evaluation Evaluation Persuasion
Behavior Action Conative Purchase Trial Decision
Postpurchase Adoption Confirmation
Evaluation

Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall Chapter Seven Slide 37
Involvement and Passive
Learning Topics
• Definitions and Measures of Involvement
• Marketing Applications of Involvement
• Central and Peripheral Routes to Persuasion
• Hemispheral Lateralization and Passive
Learning

Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall Chapter Seven Slide 38
Involvement
• Degree of personal relevance that the
product or purchase holds for that
customer.
• High involvement purchases are very
important to the consumer
• Low-involvement hold little relevance,
have little perceived risk, and have
limited information processing

Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall Chapter Seven Slide 39
Measuring Involvement with an
Advertisement - Table 7.3
Subjects respond to the following statements on a 7-point Likert scale ranging
from “Strongly Agree” to “Strongly Disagree.”
The message in the slogan was important to me
The slogan didn’t have anything to do with my needs
The slogan made me think about joining the military
The slogan made me want to join the military
While reading the slogan, I thought about how the military might be useful for me
The slogan did not show me anything that would make me join the military
I have a more favorable view of the military after seeing the slogan
The slogan showed me the military has certain advantages
The slogan was meaningful to me
The slogan was worth remembering
Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall Chapter Seven Slide 40
Marketing Applications of
Involvement
• Ads in video games
• Avatars
• Sensory appeals in ads to get more
attention

Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall Chapter Seven Slide 41
Central and Peripheral Routes
to Persuasion

Central route to persuasion


• For high involvement purchases
• Requires cognitive processing
Peripheral route to persuasion
• Low involvement
• Consumer less motivated to think
• Learning through repetition, visual cues, and
holistic perception

Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall Chapter Seven Slide 42
Hemispheral Lateralization and
Passive Learning
• Hemispheral lateralization
– Also called split-brain theory
• Left Brain
– Rational
– Active
– Realistic
• Right Brain
– Emotional
– Metaphoric
– Impulsive
– Intuitive

Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall Chapter Seven Slide 43
Hemispheric Lateralization

Source: Mercedes-Benz USA, LLC


Exercise
How Is Passive Learning Applied to the
Promotional Appeal Featured in This Ad?

Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall Chapter Seven Slide 48
The Ad is Targeted to the Right Brain

Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall Chapter Seven Slide 49
Passive v/s Active Learning

Defined
A form of learning in which consumers receive information
from repeated exposures which is fully processed after a
product is purchased
Measures of Consumer Learning
Brand Loyalty
• Recognition and Recall Measures
• Brand Loyalty

Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall Chapter Seven Slide 51
Measures of Consumer Learning
Brand Loyalty

Three groups of factors Four types of loyalty


• Personal degree of risk aversion or • No loyalty
variety seeking
• Covetous loyalty
• The brand’s reputation and availability
of substitutes • Inertia loyalty
• Social group influences • Premium loyalty

Brand Equity – the value inherent in


a well-known brand name

Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall Chapter Seven Slide 52
53
Identify your self.

• Around the year 2008, the spinning dancer


image got popular on the internet as right
brain-left brain test. It stated that if you see
the dancer spinning :
• Clockwise→ Your right brain is more active
and you are a creative person.
• Counter-clockwise→ you are using more of
your left brain and you are a logical person.

54
All rights reserved. No part of this publication may be reproduced, stored in a
retrieval system, or transmitted, in any form or by any means, electronic,
mechanical, photocopying, recording, or otherwise, without the prior written
permission of the publisher. Printed in the United States of America.

Copyright © 2010 Pearson Education, Inc. Publishing as


Prentice Hall

Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall Chapter Seven Slide 55
Consumer Behavior
Twelfth Edition

Chapter 6
Consumer Attitude Formation
and Change

Slides in this presentation contain


hyperlinks. JAWS users should be able to
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Learning Objectives (1 of 2)

6.1 To understand how consumers’ attitudes influence their


decision-making.
6.2 To understand the tri-component attitude model.
6.3 To understand how to apply multiattribute models to
change consumers’ attitudes.
6.4 To understand how to alter consumers’ attitudes by
making particular needs prominent.

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Learning Objectives (2 of 2)

6.5 To understand cognitive elaboration and the two routes


to persuasion.
6.6 To understand cognitive dissonance and resolving
cognitive conflicts.
6.7 To understand how people assign causality to events.

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Learning Objective 6.1

6.1 To understand how consumers’ attitudes influence their


decision-making.

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Attitude
Defined
A learned predisposition to behave in a consistently favorable
or unfavorable manner with respect to a given object.
product,

• brand,
• service,
• price,
• package,
• advertisement,
• promotional medium,
• or the retailer selling the product,
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Example: Wrangler

Source: Wrangler, a VF Company


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Attitude Formation

• Consumers learn attitudes


– Trial purchase: Exceed➔ Expectations: +ve or –ve
– Typically, only two or three prominent beliefs about a
product play a role in the formation of attitudes, and less
important beliefs carry little weight.
• Sources of attitude formation
– Experience
– Family and friends
– Media/Internet/Social Media

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Role of Personality Factors

• Need for cognition


• Innovativeness

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Role of Attitudes
• Attitudes are consistent with behavior

• How do situations affect attitudes?

Table 6.1 Situations Affecting Attitudes


Product/Service Situation Attitude
Energizer Batteries Hurricane is coming “I know that the hurricane is going to knock out my electricity, so I’d
better be prepared.”
Mini Cooper Buying a new car “With gas prices so high, I’ve got to trade in my SUV and buy a car
that gets 30 mpg!”
Cheerios High cholesterol “They’ve been advertising how Cheerios can lower cholesterol for so
long that it must be true.”
The Wall Street Extra cash on hand “I have to decide whether to invest in stocks or just put my money in
Journal a money market fund.”
Delta Airlines Friend’s bachelor party “My friend’s bachelor party is in Las Vegas, and I want to be there.”

Maxwell House Need to stay awake “I had a late date last night, but I’ve got a lot of work to do this
Coffee morning at the office.”
Stouffer’s Easy Want dinner at home “I’m tired of eating out night after night.”
Express Meals

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Learning Objective 6.2

6.2 To understand the tri-component attitude model.

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1.The Cognitive Component
Table 6.2 Beliefs about Two Smart Speakers

Product Attribute Google Home Amazon Echo


Responds to Voice Commands Yes Yes
Prompt Word “OK Google” or “Hey Google” “Alexa,” “Echo,” “Amazon,” or
“Computer”
Works with my Smart Home No Yes
(Ecobee)
Customizable Appearance Yes No
Personal Assistant Search Google, daily briefing, Add items to calendar, make
check traffic, calendar, flights, shopping and to-do lists,
make shopping list, track packages check flights, track a package
Works with my Music Streaming Yes No
Preference (YouTube Music)

Source: Adapted from: Andrew Gebhart, “Google Home v s Amazon Echo: Round 2—
ersu

Google strikes back,” CNET.com, 28, 2017.


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2. The Affective Component

For the past 30 days, you have been using Dapper Dan
Aftershave Balm. Please tell us how your skin felt after
using the product. Please indicate your level of agreement
or disagreement with each of the statements listed here.
Blank Strongly Agree Neutral Disagree Strongly
Agree Disagree
Dapper Dan Balm refreshed my skin. [1] [2] [3] [4] [5]

Dapper Dan Balm tightened my skin. [1] [2] [3] [4] [5]

Dapper Dan Balm smoothed my skin. [1] [2] [3] [4] [5]

Dapper Dan Balm suppled my skin. [1] [2] [3] [4] [5]

Dapper Dan Balm revived my skin. [1] [2] [3] [4] [5]

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Likert Scale

Defined
The most popular form of attitude scale, where consumers
are asked to check numbers corresponding to their level of
“agreement” or “disagreement” with a series of statements
about the studied object.

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Semantic Differential Scale

For the past 30 days, you have been using HI Lipgloss.


Please tell us how your lips felt after using the product. For
each of the adjectives listed here, please mark an “X” in the
box corresponding to how your lips felt after using HI
Lipgloss.

Refreshed [1] [2] [3] [4] [5] Not refreshed


Tight [1] [2] [3] [4] [5] Not tight
Smooth [1] [2] [3] [4] [5] Not smooth
Supple [1] [2] [3] [4] [5] Not supple
Revived [1] [2] [3] [4] [5] Not revived

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3. The Conative Component: reflects the likelihood
that an individual will undertake a specific action or behave in a particular
way
consumer’s intention to buy
Which of the following statements best describes the chance that you would buy Dapper
Dan Aftershave Balm the next time you purchase an aftershave product?
Fill in the blank I definitely will buy it.
Fill in the blank I probably will buy it.
Fill in the blank I am uncertain whether I will buy it or not.
Fill in the blank I probably will not buy it.
Fill in the blank I definitely will not buy it.
How likely are you to buy Dapper Dan Aftershave Balm during the next three months?
Fill in the blank Very likely
Fill in the blank Likely
Fill in the blank Uncertain
Fill in the blank Unlikely
Fill in the blank Very unlikely

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Discussion Questions

• Explain your attitude toward a product / service based on


the tricomponent attribute model.
• Be sure to isolate the cognitive, affective, and conative
elements.

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Altering Consumer Attitudes

• Changing beliefs about


products
– More, better, best
– Information aided must be
compelling and repeated

• Changing brand image


– Biggest, Largest, First
• Changing beliefs about
competing brands
– Comparative Advt.
– Two sided message
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Example of two sided message

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Attitude - Behavior GAP

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Multi-attribute attitude models
• To understand how to apply Multi-attribute
models to change consumers’ attitudes.
– Attitude towards object model
– Attitude towards behavior model

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Attitude-Toward-Object Model: that a consumer’s evaluation of
a product is a function of:
1. The extent to which the product has (or lacks) each of a given set of
attributes.
2. The importance of each of these attributes to the consumer

• Used to change attitudes


• Ways
– Add an attribute
▪ Add
▪ Innovate
▪ Eliminate
– Change perceived importance of an attribute
– Develop new products
▪ consumers’ attitudes toward orange juice: amount of pulp,
degree of sweetness, strength of flavor and color.
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Attitude toward Behavior Model

• Difference between Attitude v/s Behavior or Acting

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Other Multi-Attribute Models

• Theory of Reasoned Action


• Theory of trying-to-consume
• Attitude-toward-the-ad model
How are the models different from the attitude-toward-
object model? From each other?

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29

A Simplified Version of the Theory of Reasoned


Action - Figure 8.5

NORMATIVE
BELIEF

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All Rights Reserved
Eight
Slide
Multiattribute Models
Attitude Toward the Attitude Toward Behavior Theory of Reasoned Action
Object
• Attitude toward the • Tri-component attitude
• Does a brand have the brand model
needed attribute?
• How do I feel about • Normative beliefs
• What is the importance buying this brand?
• Motivation to comply with
of that attribute?
norms

Theory of Trying to Attitude Toward the Ad Attitude-Toward-Social-


Consume Media Posts
• Attitudes toward brands
• Attitude toward the are formed based on • Attitudes toward brands
behavior how consumers feel are formed based on
about the advertisements how consumers feel
• Personal impediments
for these brands. about what they see on
• Environmental social media about the
impediments brands.

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Learning Objective 6.4

6.4 To understand how to alter consumers’ attitudes by


making particular needs prominent.

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Strategies of Attitude Change

1. Changing the Basic Motivational Function

2. Associating the Product with an Admired Group or Event

3. Resolving Two Conflicting Attitudes

4. Altering Components of the Multiattribute Model

5. Changing Beliefs about Competitors’ Brands

Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall Chapter Eight Slide 32
1. Changing the Basic Motivational
Function
1.1. Utilitarian Function
• Relates to rewards and punishments

1.2. Ego Defensive function


• Protection from external threat and internal feelings : Denture Advt.

1.3. The Value expressive function


• Self concept : Prepared Salads Low / High in Calories???

1.4. Knowledge function


• Need for order structure and meaning

Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall Chapter Eight Slide 33
Example: Utilitarian Function

Source: LYSOL is a registered trademark of Reckitt Benckiser LLC.


Why and How Does This Ad Appeal to
the Utilitarian Function?

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The Product is Green and Works as
Well or Better than Other Products.

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Which Lifestyle- Related Attitudes Are
Expressed or Reflected in This Ad?

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Healthy Eating and Snacking Lifestyle:
Ego Defensive

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How Does This Ad Provide Information to Establish
or Reinforce Consumer Attitudes?

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It Raises the Question About UVA Rays and then
Provides Information on Sun Protection.
Knowledge function

Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall Chapter Eight Slide 40
Discussion Questions

• What products that


you purchase
associate themselves
with an Admired
Group or Event?
• When does it
personally influence
your purchasing?

Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall Chapter Eight Slide 41
2. Associating the Product with an
Admired Group or Event
• Attitudes are related, at least in part, to certain groups, social
event’s or causes. It is possible to alter attitudes toward
companies and their products, services and brands by
pointing out their relationships to particular social groups,
events, or causes.
• Companies regularly include mention in their advertising of
the civic and public acts that they sponsor to let the public
know about the good and that they are trying to do. For
example Crest Sponsors a program that promotes good oral
care to children through the Boys and Girls Clubs of America.

42
How Is Fiji Water’s Link to an Environmental Cause
Likely to Impact Consumers’
Attitudes Toward Its Product?

Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall Chapter Eight Slide 43
They Might Have a More Favorable Attitude.

Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall Chapter Eight Slide 44
3. Resolving two conflicting attitudes:

If consumers can be made to see that their


negative attitude toward a product is not in
conflict with another attitude, they may be
induced to change their evaluation of the
product.
• A laundry powder that cares about both
effectiveness and environmental sustainability
• Disposable nappies that are made with
organic cotton
45
4. Altering Components of the
Multiattribute Model
4.1 Changing relative evaluation of
attributes
4.2 Changing brand beliefs
4.3 Adding an attribute
4.4. Changing the overall brand rating

Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall Chapter Eight Slide 46
4.1 Changing relative evaluation of attributes

• The overall market for many consumer products is set out so that
different consumer segments are offered different brands with
different features.
• If detergent powder is a product category then one brand may stress
potency and the other brand may stress gentleness.
• In general when a product category is naturally divided according to
distinct product features or benefits that appeal to a particular
segment of consumers marketers usually have an opportunity to
persuade consumers to "cross over". That is persuading consumers to
shift their favorable attitude from one version of the product to the
other

47
4.2 Changing brand beliefs

• A cognitive oriented strategy for changing


attitudes that concentrates on changing
beliefs or perceptions about the brand itself
– a most common form of advertising appeal.
Advertisers are constantly reminding us that their
product is "more" is "better" or "the best".
– AMWAY

48
4.3 Adding an Attribute /Ingredient

• This strategy can be accomplished by adding


an attribute that previously has been ignored
or one that represents improvement or
technological advancement

49
4.4. Changing the overall brand rating

• Another cognitive oriented strategy that


attempts to alter consumers' overall rating of
a brand directly, without attempting to change
their evaluation of any single brand attribute.
• Such strategy frequently relies on some form
of global statement that this is:
– "the largest selling brand“
– "the most awarded car ever"

50
5 Changing Beliefs about
Competitor's Brand
• How Is Valvoline’s
Attempt to Change
Attitudes Toward a
Competing Brand Likely
to Impact Attitudes
Toward Its Own Brand?

51
How Is This New Benefit Likely to Impact
Consumers’ Attitudes Toward the Product?

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The Consumer Will Have a More Positive
Attitude Overall from the New Attribute.

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How Is the Absence of an Ingredient Likely to
Lead to a Favorable Attitude Toward a Product?

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When It Was An
Unfavorable Attribute

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Which Attitude Change Strategy Is
Depicted in This Ad?

Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall Chapter Eight Slide 56
Changing the Overall Brand Rating

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Learning Objective 6.5

6.5 To understand cognitive elaboration and the two routes


to persuasion.

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Elaboration Likelihood Model

Defined
The proposition that attitudes can be changed by either one
of two different routes to persuasion – a central route or a
peripheral route – and that the cognitive elaboration related
to the processing of information received via each route is
different

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Central Route

• High involvement
• Considered thought and cognitive processing
• Learning through
– Attribute-based information
– High quality arguments
– Exertion of effort to learn, comprehend, evaluate
• Comparative ads
• Objective knowledge

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Peripheral Route

• Low involvement
• Little thought and little information processing
• Learning through
– Repetition
– Passive processing of visual cues
– Holistic processing
• Non-comparative ads
• Subjective knowledge

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Applications (1 of 2)

• Comparative ads
– Comparative ads processed centrally
– Noncomparative ads processed peripherally
• Product knowledge
– Higher objective knowledge for utilitarian products
than hedonic products
– Higher subjective knowledge for hedonic products
than utilitarian products

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Learning Objective 6.6

6.6 To understand cognitive dissonance and resolving


cognitive conflicts.

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Dissonance

• Cognitive dissonance
• Post-purchase dissonance
• Ways to reduce post-purchase dissonance
– 1. Rationalize decision
– 2. Seek advertisements that support choices (avoid
competitive ads).
– 3. “Sell” friends on the positive features of the
purchase.
– 4. Seek reassurance from satisfied owners

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Learning Objective 6.7

6.7 To understand how people assign causality to events.

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Attribution Theory

• Self-perception attribution
• Defensive attribution
• Foot-in-the-door technique
• Door-in-the-face technique

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Defensive Attribution

Defined
People generally accept (or take) credit for success
(internal attribution), but assign failure to others or outside
events (external attribution)

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Applications (2 of 2)

• Why does the foot-in-the door technique increase the


likelihood that the requestee will fulfill a larger request?
• How is it different from the door-in-face technique?

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Copyright

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