MKT547 Marketing Communications Shamshul Anaz Hj. Kassim UiTM Perlis Introduction Understanding consumer behavior is important so marketers can design a more effective MarCom programs Marketing communicators need to understand the factors influencing customers purchasing decisions With better understanding of consumers behavior, they will be better able to predict the effectiveness of their marketing activities The Fundamental of Consumer Behavior Marketing Mix Socio-cultural Environment Psychological Characteristics - Motivation - Learning - Perception - Attitudes/Beliefs Decision Making Recognize needs Search for information Evaluative alternatives Make purchase Experience Purchase & Evaluation Key Aspect Of Consumer Behavior Key Aspect Of Consumer Behavior Learning Motivation Attitudes Motivation Inner drive or pressure to act in order to eliminate tension, to satisfy a need or want, to solve a problem, or to restore a sense of balance A need or desire must be aroused to serve as a motive i.e. hunger may be stimulated by food commercial that shows a delicious picture of your favorite meal Rational motives vs Emotional motives Attitudes / Beliefs Enduring favorable or unfavorable cognitive evaluations, emotional feelings and action tendencies. 3 components: Cognitive – beliefs & knowledge about the object of a attitude Affective - feeling about the object Conative – action taken towards the object Learning Process of taking in information, processing them and producing new knowledge Changes in an individual’s behavior arising from experience Perception How a motivated person actually acts is influenced by his or her perception of the situation Process by which an individual selects, organizes, and interprets information inputs Model of Decision Making Process Problem Recognition the initial step in the purchase decision Identification of a problem or unfulfilled needs Information search After recognizing a problem, a consumer begins to search for information, the next stage in the purchase decision process. First, you may scan you memory for previous experiences with products or brands. This action is called internal search for instance buying a frequently purchase products such as shampoo Or a consumer may undertake an external search for information. This is especially needed when : past experience or knowledge is insufficient the risk of making a wrong purchase decision is high the cost of gathering information is low. Alternative evaluation Evaluate the available alternatives Some factors that must be considered in evaluating alternatives are Fund Performance of the product alternatives Purchase decision Having examined the alternatives in the evoked set, the consumer makes a purchase decision. Post purchase behavior Consumer will make comparison of the performance based on their expectation If the buyer is satisfied with his consumption, he enhances the potential of the brand, which is likely to result in greater probability of its repeat purchase. If the consumer is dissatisfied, the potential of the brand is diminished, and so is the possibility of a repeat purchase. Post purchase behavior can be linked to customer advocacy/support. If customers are satisfied with the products and services given, other firms will find it difficult to convince customers to take the risk and switch to a new partner. Take 5 Persuasion in Marketing Communications Marketing communicators use reasoning or emotional appeals in trying to guide people to accept some belief, attitude or behavior Persuasion is the essence of marketing communications whereby marketers use various kinds of methods and techniques Tools of Persuasion Reciprocation Communication and Consistency Social Proof Liking Authority Scarcity Persuasion in Marketing Communications Tools of Persuasion Reciprocation People naturally learn to return a favor which is the norm of reciprocity Marketer give samples or gifts with hope customers will reciprocate by purchasing product Communication and Consistency There is usually a strong tendency for people to remain faithful/consistent after you have made a commitment Social Proof In cases when people do not know what to do, they usually look at the behavior of other i.e. tendency to follow your friends or family Liking People would be more likely to undertake action when it is recommended by a likeable person Two features of likeability are physical attractiveness and similarity i.e. use attractive celebrities to endorse their product Authority People generally raised respect authority figures and to exhibit sense of duty towards them i.e. the use of dentist in TV commercial for toothbrush or toothpaste i.e. the use of athletes to advertise energetic drinks or exercise equipments Scarcity Psychological reactance-people will react against any effort to reduce their freedom or choices i.e. ‘only a few left’, ‘while stock last’ Models of Consumers Process Information The Consumer Processing Model (CPM) The Hedonic Experiential Model (HEM) 8 stages of CPM The Consumer Processing Model (CPM) 1. Exposure to Information Consumers are exposed to info with the marketer's message 2. Selective Attention Consumers focus and consider the info that they have been exposed to 3 types of attention Involuntary Require little or no effort on the part of the receiver Attention is gained based on the intensity of the stimulus i.e. bright color or loud sound Non-voluntary The kind when a person is attracted to a stimulus and continues to pay attention because it hold his/her interest Voluntary A person willfully notices a stimulus 3. Comprehension (understand) of what is attended Communication is effective when the meaning of the message from the marketers matches with what the consumers extract 4. Agreement with what is comprehended Consumer will only agree with the message that they understand if the message is credible and if it contains info and appeals that are compatible with values that are important to them 5/6. Retention and Search/Retrieval of Stored Information What consumer remember about the marketing stimuli and how they access and retrieve the info when making consumption choices 7. Deciding among alternative How do consumers decide among alternatives Usually consumers use simplifying strategies/ heuristics to arrive at a decision three types of heuristics: Affect referral – a heuristic here you simply calls from memory an attitude toward relevant alternatives and choose alternative where the effect is most positive Compensatory heuristic – is used for non-dominant circumstances where you know that something must be given up in order to get something else Conjunctive heuristic – is a type of non-compensatory heuristic where it requires the consumers to establish minimums of all selected choices. An alternative is retained to be considered further after it has met all minimum criteria 8. Acting on the basis of the decision Although consumers has gone through all the above stages, they may not behave consistently with their preference The Hedonic, Experiential Model (HEM) HEM views customers behavior as driven in pursuit of “fun, fantasies and feelings” This model recognizes that people often consume products for the sheer fun of it or in the pursuit of amusement, fantasies or sensory stimulation The HEM model helps us to explain how consumers process information when they are carefree (relaxed) and happy and confronted with positive outcomes End of Chapter Next Class Advertising