How an Understanding of Consumer Attitudes Can Assist Implementation of Marketing Activities - Literature review Example

How an understanding of consumer attitudes can assist implementation of marketing activities I. Introduction The role of consumer behaviour in determining a consumers decision to buy or not to buy a product is increasingly being recognized (Foxall, 2005, p. 1). Consumer behaviour results from consumer attitudes even as they result from consumer beliefs and intentions (Foxall, 2005, p.1). This point is continually being confirmed by empirical evidence as research techniques improve (Foxall, 2005, p. 1). From a technical standpoint, consumer attitude is "a mediating variable corresponding to mental processes or states which account for the consistency of an individuals favorable-unfavorable and cross-situational responses toward an object" (Foxall, 2000, p.43). Hoyer & Macinnis (2009, p. 62) confirmed that indeed consumer behaviour is affected by attitudes. Relatedly, Hoyer & Macinnis asserted, "consumers are less motivated to process information that is highly inconsistent with their prior attitudes" (2009, p. 62). Thus, consumer attitudes likely affect how consumers will respond to ads or exhortation to buy from marketing personnel. Meanwhile, Lars Perner of the University of Southern California defines consumer attitude as consisting of consumers beliefs, feelings, and behavioural intentions. Perner views the three as interdependent as illustrated by Figure 1. Figure 1: Composite of consumers attitudes Source: L. Perner in www.consumerpsychologist.com (accessed 17 January 2010) Regarding belief, Perner says a consumer may have neutral, positive, or negative belief towards something. A neutral belief, for example, is a belief that chocolate is brown, coffee is black, or fresh steaks are reddish and not blackish. Consumers belief will have a bearing on how one must present the product he or she is selling. On feelings, Perner says that oftentimes, the consumer associate product quality, brand, or features with feelings. According to Perner, the feelings are based on beliefs. For instance, oily food can be disgusting and certain symbols such as a swastika is associated with revulsion. Perners own example is that of cut trees: an environmentalist may hate this but can be tolerant of Christmas trees. Hence, in marketing, we must anticipate how our presentation of our product conveys certain feelings to our target market. We must investigate if certain features of our product evoke certain feelings from the customer that can influence the customers decision to buy or not buy our products. Finally, on behavioural intentions, Perner says that a consumer buys a product for a particular need. For instance, food may be bought not necessarily because the consumer is hungry but because consuming the product may be associated with prestige. Brands may be patronized not because they are cheap but precisely because they are expensive when consuming the brand is associated with personal success, power, and influence or standing in society. Thus, it is especially important to assess the customers behavioural intentions for our products and build our marketing strategies based on the said behavioural intentions. II. The literature on consumers attitudes and marketing A review of the literature provides us an insight on the importance of consumer attitudes in the formulation of marketing strategies. One of the earliest studies on consumer attitudes is that by the Princeton Survey Research Associates (1999). Some of the foci of the Princeton study revolve on consumer trust and the role of age in consumer attitudes. According to the Executive Summary (pp. 8-11) of the study, during that year and based on their sample, consumers do not fully trust the business they patronize and tend to keep their personal information confidential. Further, the study estimates that only around 38% trust their main financial institution; only 20% trust the supermarket from where they buy products; and only 14% trust their credit card company. According to the study, trust among the elderly for their financial institutions is less pronounced, especially among over 65 years old. In addition, only about three out four consumers know their rights. In the Princeton Survey Research Associates study (1999), consumers believe that close to 50% of business companies take advantage of consumers. Moreover, the study found that younger consumers are more likely to engage in transactions that are likely to be more expensive for consumers. The said transactions include check-cashing outlets, pawnbrokers, and rent-to-own stores. Sometime 2007, Brown, et al. (2007) reviewed the literature and identified consumer attitudes serving as among the main drivers for internet shopping. One such driver is how people value self-direction and self-achievement: those who value self direction and self-achievement tend to have a greater disposition for internet shopping. Further, people who have certain levels of extraversion and neuroticism are also more inclined to use internet services. Another consumer attitude that promotes online shopping (or another driver) is the consumers increasing liking for convenience and choice. In contrast, according to the Brown, et al. (2007) analysis, non-online shoppers tend to be more concerned on security. The Brown, et al. (2007) interpretation of the literature is that evidence is scant that price is a main driver of internet shopping. Brown, et al. (2007) found that consumers tend to frown on shipping costs in online shopping and about a third of online shoppers abandon their intent to place an order when informed on shipping costs. The Brown, et al. (2007) interpretation of the literature is that the extent of experience and comfort with information technology is related to the inclination to shop online but more research is needed to confirm this. The researchers also found that disposition for internet shopping is related to "pleasureable" experience and, in turn, the "pleasureable" experience is related with "flow". This can mean that internet shoppers must have no dead end in internet links. For example, there may be an invitation to place orders but there may be no links for VISA or PAYPAL debits. For Brown, et al. (2007), product type has an influence on the decision to shop online. For example, consumers have the attitude to use the internet to avail products whose specifics can be identified online. In practice, however, the authors said that almost all products are availed through the internet. Brown, et al. (2007) noted that even children and young people have a good pre-disposition to shop online but there are constraints among them on access to credit cards. Their study pointed out, however, that there is little information on how cultural differences affect online shopping. According to Brown, et al. (2007), the internet did not remove the need for contact among people in market transactions---whether the interaction is face-to-face, via telephone, or via computer platforms. Using the same methodology of Brown, et al. (2007), Graham (2007) identified the consumer attitudes to energy as of that year. The literature reviewed by Graham involved studies that used surveys. According to Graham (2007), although the British population are concerned about climate change, they do not know how to contribute to mitigation (p. 7). One third of respondents in a study reduced their electric or gas consumption by installing insulation or double-glazing but fewer than one in 10 expressed that taking care of the environment was their motive (p. 7). The most common activities that survey respondents mentioned as among their contribution towards the protection of the environment are "switching off lights" and "recycling plastic bags". Energy conservation, air pollution, and climate change are the top priorities of consumers who are deeply concerned for the environment. In contrast, some of the respondents in the surveys studied by Graham (2007) pointed out that conservation of water, recycling, waste management, and environment-friendly transport were not yet their priority concerns (p. 7-8). Unfortunately, according to Brown, et al. (2007), many of those who are aware of environmental issues have not yet translated their beliefs into action (p. 8). Further, most of the small-scale enterprises pay only a small attention to energy efficiency and the personnel therein found it difficult to think of firm decisions motivated by a desire to improve energy efficiency (p. 8). According to Brown, et al. (2007), only a very few people take energy efficiency as a factor when buying appliances (p. 8). In one study reviewed by Brown, et al. (2007), although 85% of respondents turn their televisions to "stand-by", around 14% stated that they never did (p. 9). Based on the study of Powergen (2004) in the bibliography of Graham (2007), people who receive information on energy conservation, are more likely to improve their behaviour (p. 9). Directly contrasting with Graham (2007) findings for Britain are the findings of the US-based National Marketing Institute (2007) report. According to the National Marketing Institute (2007)1, consumer attitudes tended to be ethical recently and there is an emergence of an "ethical consumption revolution". According to the Institute, consumer attitudes have been influencing American companies. Some examples of this are follows: 1. Wallmart stores are more energy efficient in the last 7 years and there was a 25% solid reduction waste in the last 3 years; 2. The Bank of America has the "worlds largest green office" building and has taken a $20 billion lending initiative concentrating on greenhouse gas emission reduction; and 3. General Motors has been developing heavy ethanol and hydrogen as alternative fuels, developing cars that have reduced greenhouse gas emissions; and has embarked on manufacturing recycling. In the assessment of the National Marketing Institute (2007), consumers are particularly concerned about health and wellness. In addition, according to the Institute, consumers are becoming more conscious of the environment. They like to recycle and conserve energy. However, the report acknowledges that there are consumers who believe that we need not be concerned on the environment because "there is time to fix problems" (Slide 14). Further, the report recognizes that there also consumers who agree that caring for the environment is positive but there are other priorities (Slide 15). Based on the estimate of the Institute, at least 34% of consumers are environmentally conscious and strongly believe that society must use new and environment-friendly products. The Institute estimated that the "environmentally unconcerned" among the consumers dropped from 21% to 14% from 2005 to 2006, marking a significant change in consumer attitudes. Further, the Institute said that around 60% of consumers are likely to buy the products of a company who are mindful of their companys impact on the environment and society. The study of Herzenstein, et al. (2004) examined consumers attitudes to direct-to-consumer advertising of prescription drugs, ad effectiveness, and consumer/physician behaviour. Based on statistical analyses involving inferential statistics, Herzenstein, et al. (2004), found that consumers attitudes to direct-to-consumer advertising are responsible for the success of the advertising or marketing of prescription drugs. According to the authors, consumers have "moderate" attitudes towards direct-to-consumer advertising of prescription drugs. Although mean attitudes vary across population sub-groups, the consumers favourable contributed to awareness. In turn, the consumers moderate attitudes and awareness led consumers to influence their physicians on what drugs to prescribe [p. 208]. Thus, the advertising of prescription drugs worked to promote buying [p. 210]. III. Analysis Based on the foregoing, an understanding of consumers attitude will likely help us in designing a marketing program for our companies. Given the increasing concern for the environment, a company will likely enhance product sales if it projects an image of being a recycler, an energy-saving conscious entity, and a low greenhouse gas emitter. Food products will be likely patronized by a market segment if the food products have an image of being healthy for consumers. Probably, an image that the product is low-salt, low-cholesterol, low on calories, low on sugar, and with non-carcinogenic ingredients will likely boost product sales. Although not discussed in the literature subjected to review, it is highly likely that a company that projects an image of being gender-fair in its workplace, does not use child labour, kind to animals, engaged in biodiversity and specie conservation work, and engaged in corporate social responsibility would likely enhance product sales among a significant population of the consumer. Social responsibility has been described in several literature and several websites have already been established that seek to promote social responsibility among business companies. In sum, what can be said as the essence of social responsibility are its observance of work ethics compatible with societys positive values and the return of a portion of profits to society in the form of assistance to the less privileged or less-abled sectors. Meanwhile, an understanding that certain social variables have a bearing on consumer attitudes is worthy of attention. Thus, we need not see that consumer attitudes are uniform over a population. We can be discriminating on our target market and identify variables that can be associated with certain attitudes and design our marketing programs consistent with the attitudes of consumers given a particular market segment. IV. Conclusions Indeed, what can be concluded from this work is that an understanding of consumer attitudes will be very important in the implementation of marketing or marketing activities. Emphasizing corporate or product qualities compatible with consumers values and attitudes would likely enhance product sales. In other words, a good understanding of consumer attitudes would give us an idea of the appropriate product and corporate image that we should highlight or impress upon the customer to enhance product sales. An understanding of the role of social variables on consumer attitudes would also help us design marketing programs consistent with the market segment characteristics and the attitudes associated with the market segment. Reference list Brown, D., Oleksik, G., & Bisdee, D., 2007. Consumer attitudes review. London: Office of Fair Trading. Foxall, G., 2005. Understanding consumer choice. Great Britain: Antony Rowe Ltd, Chippenham and Eastbourne. Graham, V., 2007. A review of consumer attitudes to energy (A report for the Sustainable Development Commission). London: Office of Gas and Electric Markets (OFGEM). Herzenstein, M., Sanjog, M., & Posavac, S., 2004. How consumers attitudes toward direct-to-consumer advertising of prescription drugs influence ad effectiveness, and consumer and physician behaviour. Marketing Letters, 15 (4), pp. 201-212. Hoyer, D. & Macinnis, D., 2009. Consumer behavior. Mason, OH, USA: South-Western. National Marketing Institute, 2007. The LOHAS market and consumer trends: The rise of ethical consumption revolution (Report in Microsoft PowerPoint Slides). LOHAS, United States of America: The National Marketing Institute. Perner, L., (n.d.). Consumer behavior. Available at http://www.consumerpsychologist.com/cb_Attitudes.html [Accessed 17 January 2010]. Princeton Survey Research Associates, 1999. Consumer behaviour, experiences and attitudes: A comparison by age groups. New Jersey: Princeton Survey Research Associates. 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