EXPECTANCY-VALUE MODEL in details

EXPECTANCY-VALUE MODEL:-


The consumer arrives at attitudes toward various brands through an attribute evaluation procedure, developing a set of beliefs about where each brand stands on each attribute.60 The expectancy-value model of attitude formation posits that consumers evaluate products and services by combining their brand beliefs—the positives and negatives—according to importance. Suppose Linda has narrowed her choice set to four laptop computers (A, B, C, and D). Assume she’s interested in four attributes: memory capacity, graphics capability, size and weight, and price. her beliefs about how each brand rates on the four attributes. If one computer dominated the others on all the criteria, we could predict that Linda would choose it. But, as is often the case, her choice set consists of brands that vary in their appeal. If Linda wants the best memory capacity, she should buy C; if she wants the best graphics capability, she should buy A; and so on. If we knew the weights Linda attaches to the four attributes, we could more reliably predict her laptop choice. Suppose she assigned 40 percent of the importance to the laptop’s memory capacity, 30 percent to graphics capability, 20 percent to size and weight, and 10 percent to price. To find Linda’s perceived value for each laptop according to the expectancy-value model, we multiply her weights by her beliefs about each computer’s attributes. This computation leads to the following perceived values: Laptop B = 0.4(7) + 0.3(7) + 0.2(7) + 0.1(7) = 7.0 Laptop A = 0.4(8) + 0.3(9) + 0.2(6) + 0.1(9) = 8.0 Recognizing consumers’ solidly entrenched beliefs, Domino’s launched a bold ad campaign to transform its image. A Consumer’s Brand Beliefs about Laptop Computers Laptop Computer Attribute Memory Capacity Graphics Capability Size and Weight Price A 8 9 6 9 B 7 7 7 7 C 10 4 3 2 D 5 3 8 5 Note: Each attribute is rated from 0 to 10, where 10 represents the highest level on that attribute. Price, however, is indexed in a reverse manner, with 10 representing the lowest price, because a consumer prefers a low price to a high price. 170 PART 3 CONNECTING WITH CUSTOMERS An expectancy-model formulation predicts that Linda will favor laptop A, which (at 8.0) has the highest perceived value.61 Suppose most laptop computer buyers form their preferences the same way. Knowing this, the marketer of laptop B, for example, could apply the following strategies to stimulate greater interest in brand B: • Redesign the laptop computer. This technique is called real repositioning. • Alter beliefs about the brand. Attempting to alter beliefs about the brand is called psychological repositioning. • Alter beliefs about competitors’ brands. This strategy, called competitive depositioning, makes sense when buyers mistakenly believe a competitor’s brand has more quality than it actually has. • Alter the importance weights. The marketer could try to persuade buyers to attach more importance to the attributes in which the brand excels. • Call attention to neglected attributes. The marketer could draw buyers’ attention to neglected attributes, such as styling or processing speed. • Shift the buyer’s ideals. The marketer could try to persuade buyers to change their ideal levels for one or more attributes.

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