Group Project

1
Group Project

• Your Group is a Marketing Consultant for a brand
• improve market position relative to market leader
• Market Research Exercise
• Interview consumers
• Get data about their beliefs and evaluations
• analyze data using a compensatory model of
  attitudes (Fishbein model)
• Formulate marketing strategy
• Especially advertising recommendations

2
Compensatory Strategy Weighted Additive Model

• E (overall attitude towards a brand) Summation
  (biwi)
• bi belief regarding brands performance on
  attribute i
• wi importance assigned to attribute i
• Summation (biwi) b1w1 b2w2 .

3
How important is price to you when buying
calculators?

• Price is
•  Very Very
• unimportant important
• 1 2 3 4 5 6 7
  8 9 10
• This question asks does the price of the
  calculator matter to you when you make your
  judgment?

4
Measuring WI May Not be Enough! Finding out
evaluation of person A towards Coke (wi) When you
select a soft drink, sweetness is  Very
unimportant Very important 1 2 3 4 5 (which
means does the sweetness of a drink matter to
you when you make your judgment?) (bi)  Regarding
sweetness, your belief is that Coke has  Low
Sweetness High Sweetness 1 2 3 4 5
5
Measuring WI May Not be Enough! Finding out
evaluation of person B towards Coke (wi) When you
select a soft drink, sweetness is  Very
unimportant Very important 1 2 3 4 5 (which
means does the sweetness of a drink matter to
you when you make your judgment?) (bi)  Regarding
sweetness, your belief is that Coke has  Low
Sweetness High Sweetness 1 2 3 4 5
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Should Measure EI Instead (Similar to WI but
direction included) Person A. (ei) (similar to
wi) evaluation of attribute  When you select a
soft drink, high sweetness is  Very
undesirable Very desirable -2 -1 0 1 2 hig
h sweetness (not just sweetness) desirability
(not just importance) bipolar (bi) Regarding
sweetness, your belief is that Coke has  Low
Sweetness High Sweetness -2 -1 0 1 2 (als
o bipolar by convention)
7
EI Measurement Contd Person B. (ei) (similar to
wi) evaluation of attribute  When you select a
soft drink, high sweetness is  Very
undesirable Very desirable -2 -1 0 1 2 (bi
) Regarding sweetness, your belief is that Coke
has  Low Sweetness High Sweetness -2 -1 0
1 2
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Difference in ei and wi

• (wi)
• When you select a soft drink, sweetness is
•  Very unimportant Very important
• 1 2 3 4 5
• (ei)
• When you select a soft drink, high sweetness is
•  Very undesirable Very desirable
• -2 -1 0 1 2
• Note when measuring ei
• you have to ask about one extreme of the
  attribute high or low sweetness (not just
  sweetness)
• you have to ask whether that extreme is good/bad
  (or desirable/undesirable -- not just importance)
• bipolarity to show that the attribute can be bad
  too.

9
Similarity in ei and wi

• (wi)
• When you select a soft drink, sweetness is
•  Very unimportant Very important
• 1 2 3 4 5
• (ei)
• When you select a soft drink, high sweetness is
•  Very undesirable Very desirable
• -2 -1 0 1 2
• Note ei also measures importance!!
• Compare -2 and 2 for importance
• What does 0 mean in terms of importance?

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So ei is a better measure than wi

• It measures importance, and it is also able to
  distinguish between two types of consumers
• Those who think an attribute is important because
  they like it
• And those who think an attribute is important
  because they dislike it

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So instead of old compensatory model

• E (overall attitude towards a brand) Summation
  (biwi)

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Fishbein's Multiattribute Compensatory Model of
Attitudes   MODEL Ao summation (biei) i 1
to n Ao Attitude towards the object o (e.g.,
overall evaluation of Coke) bi extent of belief
that o possesses attribute i (e.g., how much do
you believe that Coke is sweet?) -- measured at
level of brand ei evaluation of attribute i
(how do you evaluate high sweetness -- good or
bad?) -- measured at level of product category
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Use of the Fishbein Model...

• Check consumers attitudes towards your brand
  specially compared to a competing brand
• Make suggestions for improving consumers
  attitudes towards your brand

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4 Steps

• Step 1 Identify some (5) important attributes in
  that product category
• Step 2 Design a questionnaire to measure es and
  bs
• Step 3 Analyze the data youve collected to see
  consumers attitudes towards the brands
• Step 4 Make recommendations for improving the
  market position of your brand
• Especially advertising-based recommendations

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Example Attitude towards Wristwatches

• You want to compare attitudes towards two
  different brands of watches A and B

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Step 1 Attribute Identification

• First, you need to identify some attributes (5
  for project) that are important to consumers when
  thinking about this product category
  (wristwatches)
• How do you do attribute identification?
• Accuracy
• Durability
• Price
• Styling
• Size

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Step 2 Questionnaire Survey

• In order to apply Fishbeins model, design a
  questionnaire containing scales for ei and bi
• hand out to entire sample of respondents
• there will be other questions also (not just
  about e and b), but this is the core of the
  questionnaire

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Measuring ei (Consumers evaluations of each
attribute)

• How many scales do you need??

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Measuring ei Please state your opinion
on the following scales For wristwatches
high accuracy is Undesirable Desirable -3
-2 -1 0 1 2 3 high durability is
Undesirable Desirable -3 -2 -1 0 1 2 3 .
...And so on for all the other attributes
(styling, price, size)
20
Measuring bi (Consumers belief about how each
brand performs on each of the attributes)

• How many scales do you need??

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Measuring bi for Brand A Please tell us what you
think about brand A on these features (note
bipolar scales by convention) Brand A
wristwatch is high in accuracy Unlikely Likel
y -3 -2 -1 0 1 2 3   Brand A wristwatch
is highly durable Unlikely Likely -3 -2 -1
0 1 2 3 ...And so on for all the other
attributes (styling, price, size)
22
Measuring bi for Brand B Please tell us what
you think about brand B on these
features Brand B wristwatch is high in
accuracy Unlikely Likely -3 -2 -1 0 1 2
3 Brand B wristwatch is highly
durable Unlikely Likely -3 -2 -1 0 1 2
3 ...And so on for all the other attributes
(styling, price, size)
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Step 3 Data Analysis

• Calculate attitudes towards the two brands
• Ao summation (biei) i 1 to n
• E.g., Attitude towards brand A b1e1 b2e2
  b3e3 b4e4 b5e5
• Each consumer has given you different bs and
  es so what numbers do you use in the formula?

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Compute Average Scores for BI and EI   Example
 Average EI for accuracy  Consumer
1 3  Consumer 2 1  Consumer 3 2  Consumer
4 2  Average Ei ????
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Using Average Scores. Average Bi for accuracy
of Brand A   Consumer 1 3 Consumer 2
3 Consumer 3 3 Consumer 4 3   Average BI
for Brand A accuracy ????
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Attitude Measurement Brand A
Salient Beliefs
Belief Strength (bi)
Eval Score (ei)
biei
Overall attitude 7
Attitude Measurement Brand B
Salient Beliefs
Belief Strength (bi)
Eval Score (ei)
biei
Overall attitude 1
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Step 4 Making Recommendations Based on Data
Analysis

• How do you help the follower brand (Brand B)
  improve its position with respect to the market
  leader (Brand A)?
• What number (s) do you want to change and how
  can you do it?

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Attitude Measurement Brand A
Salient Beliefs
Belief Strength (bi)
Eval Score (ei)
biei
Overall attitude 7
Attitude Measurement Brand B
Salient Beliefs
Belief Strength (bi)
Eval Score (ei)
biei
Overall attitude 1
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To Review 4 Steps in usingFishbein Model

• Step 1 Identify some (5) important attributes in
  that product category depth interview
• Step 2 Design a questionnaire to measure es and
  bs
• Step 3 Analyze the data youve collected to see
  consumers attitudes towards the brands
• Step 4 Make recommendations for improving the
  market position of your brand

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Fishbein Model of AttitudesMajor Tool for Project

• Check current status of your brand and also
  generate recommendations for improvement
• If possible, focus on advertising-based
  recommendations to change ei and bi since
  advertising is a major component of our course
  (AD DRAFT)

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Summary of Project Details

• Pick a product category
• Pick 2 brands in that product category
• main brand brand you are consulting for
• one competing brand
• try to pick a competing brand which is doing at
  least as well as your own brand -- e.g., you can
  pick the market leader as the competing brand
• Dont pick your brand to be either too bad or
  too good
• BEST OPTION Both brands are doing well (Coke and
  Pepsi)
• Prepare questionnaire about 40 respondents

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Choosing Product Categories

• Try to pick original product categories (points
  for creativity!)
• Service industries can be interesting
• Better not to pick very low involvement products
• Write down chosen product on list outside my door
  (Room 4359), starting Monday (March 3rd)
• No two groups can choose the same product
  category!
• Cant pick soft drinks athletic shoes
  wristwatches

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After Selecting Product Category

• First need to identify attributes (5) which
  consumers use in this product category
• Depth interview (about 5 consumers)
• ask them directly what attributes are used
• try to avoid vague/general attributes like
  quality use specific attributes

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Then Main Questionnaire

• Scales for Fishbein model
• bs and es
• (Chapters 9, 10)
• Other questions (see project details word file
  on Web)
• product involvement (compulsory)
• demographics (age/gender), lifestyle etc.
• Give questionnaire to respondents
• 40 respondents needed

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So for now

• Choose Product Category then identify attributes
• In a few weeks, start preparing your main
  questionnaire
• Read the Project Details word file on the web
  carefully

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Announcements

• Next two classes Habit and Brand Loyalty
• chapter 4 of book
• Quiz 1 results will be put on webpage by Friday
• Your bubble sheets and model answers will be kept
  with my TA Fiona (email mkfiona_at_ust.hk)
• Email her to set up meeting
• You can check your results (and compare with
  model answers), but dont take back your bubble
  sheet
• Marks not subject to discussion