COMMUNICATION & CONSUMER BEHAVIOR

5-2

CLASS OBJECTIVES

Explain the human communication process and how it impacts advertising

Outline the consumer perception process & explain

why “perception is reality”

Describe how a consumer’s level of involvement with a product influences them

Discuss consumers’ motivations

Outline the steps of the consumer purchase decision

process

Discuss various influenceson consumer behavior

5-3

THE HUMAN COMMUNICATION PROCESS

Source Encoding Message Channel

Decoding Receiver

Feedback

Noise

5-4

IN LIFE…

Source:

Message:

Channel:

Receiver:

Your friend Ann

Coffee Invitation

Text message

You

Kate & Ann You

Im w K8 @ *$. Join us?

Cant. Studying. :(

5-5

IN ADVERTISING…

Source:

Message:

Channel:

Receiver:

The sponsor, Evian

The ad

The medium, print

The consumer

Evian ad uses a symbol to encode its message

5-6

BROKEN CODE

Sometimes the receiver (consumer) doesn’t decode the message (ad) the way the source (advertiser) intended.

Example: Groupon ad http://www.youtube.com/watch?v=87RrhRyD-Pc

5-7

CRACK THE CODE…

Can you accurately decode the advertising slogans in these 2 exercises?

5-8

FEEDBACK IN ADVERTISING

DirecTV offers interactive advertising that allows consumers to give feedback,

receive information, or redeem offers.

5-9

NOISEAdvertisers compete with thousands of others for their message to be heard by consumers, i.e. noise.

5-10

CONSUMER BEHAVIOR

Consumer behavior: the mental and emotional processes and the physical activities of people who purchase and use goods and services to satisfy particular needs and wants.

What makes her like this dress?

5-11

PERSONAL PROCESSES

PERSONAL PROCESSES

Perception

Learning & Persuasion

Motivation

Perception: the personalized way we sense, interpret and comprehend stimuli.

Learning: a permanent change in thought process or behavior that occurs as a result of reinforced experience.

Persuasion: a change in belief, attitude or behavioral intention caused by promotional communication (e.g. ads).

Motivation: the underlying forces (motives) that contribute to our actions

5-12

EXAMPLE: COOKIES

Perception: I smell chocolate chip cookies, and they smell delicious.

Learning: I follow the recipe on the back of the bag and make cookies that are just as delicious.

Persuasion: I believe that Hershey’s makes the best chocolate chips, so they’re the only ones I use when I bake.

Motivation: By sharing cookies with my friends, they will see that I like them.

5-13

PERCEPTION

•Ad/commercial•Promotion•News item•Product/store•Price tag•Conversation

Physical Data(Stimuli)

•Sight•Hearing•Touch•Taste•Smell

Physiological Screens (Sensory)

•Personality•Self-concept•Attitudes•Beliefs•Habits

Psychological Screens

(Emotional)

Awareness

Nonawareness

Cognition(Awareness)

•Information•Needs•Wants

Mental Files (Memory)

Feedback

All these layers make it hard for advertisers to achieve consumer perception.

5-14

EXAMPLE: HIGHWAY BILLBOARD

Pho

to:

fran

kwba

ker.

com

Stimulus• Billboard ad

Physiological Screen• Big truck in front of my

car blocks ad from view• I’m walking, ad is too

high for me to see

Psychological Screen• I’m not 21 yet• I don’t drink alcohol• Bothered by portrayal of woman

SELECTIVE PERCEPTION

5-15

EXAMPLE: ONLINE AD

Photo: visualeditors.com

Stimulus• Online display ad appears on fave web site

Physiological Screen• I notice the ad while reading a story

Psychological Screen• The ad reinforces my habit of shopping for

clothes at LOFT• The ad appeals to my self-concept (fun,

feminine)Cognition• The ad makes it through my screens and

achieves awareness

Mental Files • I want to shop for dresses and decide to

visit LOFT this week

5-16

LOGO EXERCISE

http://www.sporcle.com/games/corplogos.php

How many of these company logos made it through our filters?

5-17

LEARNING AND PERSUASION

Stimulus

Photo:  xiaoxiazhuang.com

Example: Pizza Hut product placement On FX TV series

“The League”

Need/Want Drive to Respond

Satisfaction

Dissatisfaction

Response Reinforced

High Engagement: I’m Hungry

5-18

LEARNING & PERSUASION

This ad for Keds aims to create a positive attitude so consumers will remember the brand when the need/want is stimulated.

Low Engagement: I Don’t Want/Need Shoes

5-19

RESULTS OF LEARNING

Brand LoyaltyAttitude Brand Interest Habit

Example: dishwashers in Japan

Photo:  appliancist.com

Danby countertop dishwasher

Japanese culture doesn’t embrace labor savings or

space of traditional dishwashers.

Brands focused on hygiene, small

machines instead.

Danby = cheap, high quality.

Use dishwasher after each dinner.

“My Danby dishwasher has

become an essential part of my cleaning

routine. When I need a new dishwasher, I’ll

buy a Danby.”

5-20

Needs are basic & often instinctive

Wants are learned during lifetime

Maslow’s hierarchy of needs

MOTIVATION

Motivation: underlying forces driving decisions

Insert ex. 5-5, p. 154

Maslow’s Hierarchy table

Position = 0.35” horiz, 3.5” vertical

Size = 8.2” WIDE

Resolution = 300 dpi

5-21

Porsche ad hints at multiple levels of needs: • Physiological• Esteem• Self-

actualization

MOTIVATION

5-22

MOTIVATION

Rossiter & Percy’s fundamental motives

Negative Motives: problem removal or

avoidance

Positive Motives: benefit, bonus or

reward

5-23

CONSUMER INFLUENCES

Interpersonal

Family

Culture

Society:Reference Groups &

Opinion Leaders

What brands, products does your family buy?

What are the cultural preferences for the product?

The groups whose approval matters: what do they think?

5-24

DECISION PROCESS

Your friend Chris’ mp3 player just broke.

He’ll go through these decision steps while considering a new purchase:

1. Problem recognition.

2. Information search.

3. Evaluation and selection.

4. Store choice and purchase.

5. Postpurchase behavior.

1. Need: a new mp3 player.

2. Determine alternatives.

3. Assess and choose.

4. Buy mp3 player at store X.

5. Determine satisfaction.

5-25

DECISION PROCESS

Evoked Set:mp3 Players Apple Microsoft Rio SanDisk

Evoked set = valid product alternatives.

5-26

DECISION PROCESS

Evoked Set:mp3 Players

Evaluative Criteria

Apple Microsoft Rio SanDisk

Capacity Durability Battery life Ease of

obtaining and loading music

Evaluative criteria = the standards a consumer uses to judge the features & benefits of alternative products.

5-27

DECISION PROCESS

Evoked Set:mp3 Players

Evaluative Criteria

Cognitive Dissonance

Apple Microsoft Rio SanDisk

Capacity Durability Battery life Ease of

obtaining and loading music

Was it worth the money?

Will it last as long as my old one?

Could I have found a better price?

Cognitive dissonance = consumer’s justification of his/her behavior by reducing the dissonance (inconsistency) between their cognitions (perceptions, beliefs) and reality.

5-28

DECISION PROCESS

Evoked Set:mp3 Players

Evaluative Criteria

Cognitive Dissonance

Postpurchase Evaluation

Apple Microsoft Rio SanDisk

Capacity Durability Battery life Ease of

obtaining and loading music

Was it worth the money?

Will it last as long as my old one?

Could I have found a better price?

It’s so small. I like the color. It doesn’t take

long to put my music on it.

Postpurchase evaluation= the phase where a consumer evaluates whether an exchange was satisfying or not and reinforces or rejects the decision, updates mental files.