Advertising, Integrated Brand Promotion, and Consumer Behavior 5 3 1 1 ©2012 ©2012 Cengage Cengage Learning. Learning. All Rights All Rights Reserved. Reserved. MayMay not not be scanned, be scanned, copied copied or duplicated, or duplicated, or posted or posted to atopublicly a publicly accessible accessible website, website, in whole in whole or inorpart. in part. Consumer Behavior Consumer Behavior: a wide spectrum of things that affect, derive from, or form the context of human consumption Perspectives: 5 3 2 •Consumers are Systematic Decision Makers o They process information o They seek to maximize benefits from purchases o They are deliberate •Consumers are Social Beings o Cultural/social membership defines purchases o They are “meaning makers” in their consumption ©2012 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Perspective One: The Consumer as a Decision Maker The Consumer is: • Logical • Purposeful • Acts in a “sequential” manner in making decisions 5 4 3 ©2012 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. The Consumer Decision-Making Process 1. Need recognition • • • Need state: desired vs. actual state Maslow’s hierarchical structure as a perspective Functional or Emotional benefits • • • Internal and External search Consideration Set Evaluative Criteria Courtesy, Lowe’s 2. Information Search and Alternative Evaluation Is this a functional or emotional appeal? 3. Purchase 4. Post-purchase use and evaluation 5 5 4 • • Customer satisfaction Cognitive dissonance ©2012 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Cognitive Dissonance The feelings of doubt and concern after a purchase is made. Dissonance increases when: •The purchase price is high •There are many close alternatives •The item is intangible (example?) •The purchase is important •The item purchased lasts a long time 5 6 5 ©2012 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. When Dissonance is a Risk: Reassure the Buyer • Use Post-purchase contact – Email, text message • Great opportunity to communicate since the buyer is in a state of heightened awareness • Working to ensure satisfaction increases brand loyalty 5 7 6 ©2012 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Modes of Consumer Decision-Making: (Vary by involvement and experience) Involvement: Relevance and Importance of a Purchase • Interests and avocations • Risk—high price or long-term commitment • High symbolic meaning to purchase • Deep emotion attached to purchase Experience • More experience, more astute consumer 5 8 7 ©2012 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 4 Modes of Consumer Decision Making: (Vary by involvement and experience) 5 10 8 Extended Problem Solving: low experience, high involvement • Deliberate, careful search Limited Problem Solving: low experience, low involvement • Common products, limited search Habit or Variety Seeking: high experience, low involvement • Variety seeking—switch brands at random • Habit—buy single brand repeatedly Brand Loyalty: high experience, high involvement • Conscious commitment to find same brand each time purchase is made ©2012 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Key Psychological Processes in Advertising Attitude • Over overall evaluation of an object, person, or issue on continuum = like/dislike; positive/negative Brand Attitude • Summary evaluations that reflect preferences for various products and services Salient Beliefs • Small number of key beliefs. Five to nine salient beliefs typically form the critical determinants of attitude 5 11 9 ©2012 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Key Psychological Processes in Advertising Multi-Attribute Models (MAAMs) • Evaluative Criteria: attributes consumers use to compare brands • Importance Weights: priority assigned to attributes • Consideration Set: group of brands that are focal point of decision effort • Beliefs: knowledge and feelings consumer has about various brands 5 12 10 ©2012 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Key Psychological Processes in Advertising The Elaboration Likelihood Model (ELM) • “Central route” persuasion when involvement is high • “Peripheral route” with peripheral cues rather than strong arguments when involvement is low • Humor • Imagery • Jingles 5 14 11 ©2012 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Perspective Two: The Consumer as Social Being • Perspective One: The consumer as a decision maker can tell only part of the story. • Perspective Two: Consumption can be a social and cultural process as well. • “Meaning” is more important than “attitudes” 5 16 12 ©2012 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Consuming in the Real World Values Social Class Community Rituals Culture Geo-Politics 5 18 13 Reference Groups Gender (membership/aspiration) Race/Ethnicity ©2012 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. ©Solaria/Shutterstock Object Meaning Family Five Sociological Factors in Consumer Behavior and Advertising Response Stratification (Social Class) as a broad effect – People within social strata live in similar ways, have similar views, tend to consumer in similar ways 1. Family – Intergeneration effect = habit – Life stage effects – Celebrity = identity 2. Race and Ethnicity – A cultural effect – Social identity 3. Politics – Social disruption can effect consumer evaluations 4. Gender – Socialization effects – Evolving gender roles 5. Community 5 19 14 – Face-to-face, imagined or virtual ©2012 Cengage Learning. All communities Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. – Brand Factors Affecting Consumer Decision Making Values/Attitudes Culture Pleasure ©lev dolgachov/Shutterstock Reference Groups Situational Factors Education Personality Needs Gender Marketing Controlled Stimuli Price, Packaging, Advertising Promotion, Personal Selling Media: News, Magazines, Radio, Television, Direct Media, Blogs, Internet Family Social Class 5 23 15 Past Experience Subcultures Lifestyle ©2012 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.