How consumer's need for cognition affects their attitudes towards online brands and their platform

Abstract

With the advent of internet and popularity of websites as a means of advertising a brand, we have seen a shift in the way consumers interact with advertisements. With the traditional advertisements which was delivered in the form of newspapers, pamphlets, billboards, radio and television, a consumer didn't have a choice over how to interact and pick-and-choose the information they wish to consume. But with websites, the consumer can interact and use cognition to decide which information they need to make their purchase decisions. We use the Elaboration Likelihood Model to unearth how individuals with high need for cognition interact differently from those with low need for cognition with an advertisement. And subsequently, determined how these two models affect the attitude formation towards the brand, and influence the purchase decision in the long run. According to the Elaboration Likelihood Model, the attitude formation can occur through two pathways- this central route, and the peripheral route. The peripheral route is activated when the attitude towards a brand occurs through an indirect pathway such as an advertisement. However, the decisions made on this basis are transient. Whereas in the central route the formation of occurs by expending more effort in terms ofthinking and more extensive engagement with the product and its features. The attitude thus formed is more permanent in nature and results in more brand loyalty and a higher purchase intention. Through this report we are trying to uncover how the different modes of advertisement effect the consumer's brand loyalty and purchase intention. Moreover, we examine how the need for cognition of the consumer effects brand loyalty and purchase intention.