consumer preferences for marketing communication channels
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FOR INTERNAL USE ONLY – VAIN SISÄISEEN KÄYTTÖÖN
21.3.2012
Kari Elkelä, Itella BI
Consumer preferences for marketing
communication channels
Consumer preferences for marketing
communication channels
1. Starting points
2. Channel preferences and their change
3. Explanatory models for channel preferences
4. Controllability as the best explanatory variable for
preferences
5. Summary and conclusions
Kari Elkelä - Itella BI 2012-03-21 2
1. Starting points
Kari Elkelä - Itella BI 2012-03-21 4
Marketing communication in breakage
• The development of the technology introduces all the time new digital
channels and services
• When the alternatives increase, also consumer's desire to make
decisions on the use of channels will increase
• The information about the consumers' channel preferences is more
important than before to the companies
• Such information and research results about new channels are
generally presented in the media, the comparability of which it is
difficult to check
=>
• A comparative angle of view is needed about attitudes to old and new
marketing communication channels, to their changes, and to factors
which influence on the choices
Research questions
1. How agreeable or undesirable are the different marketing
communication channels to the consumers and how have these
preferences changed during the last few years?
2. Is it possible to build, and how, a general explanation model for
consumer preferences for marketing communication channels, and to
estimate it?
Data General view and change
• June 2010, 1180 respondents, compared with December 2006, 1303
respondents
Explanatory model for preferences
• October 2010, vastaajia 1397 respondents
• All data were collected in GallupKanava and are representative samples of
over 15-year-old Finns
Kari Elkelä - Itella BI 2012-03-21 5
Classifications of marketing
communication channels
Kari Elkelä - Itella BI 2012-03-21 6
• It is easier to compare a marketing communication channels, if the
channels are classified according to the phase of their life cycle, the
typical reception mode of messages, and the main use mode of channels
Marketing communication
channels
Phase of channel life
cycle
Reception
mode
Use mode
Catalog or leaflet Old paper
Anonymous
Information
search
channel
Newspaper Old paper
Magazine Old paper
Internet search services New digital
Unaddressed letter Old paper
Reception
channel
Radio Traditional electronic
Television Traditional electronic
Internetin newspages New digital
Social media New digital
Addressed letter Old paper
Personal Phone call Traditional electronic
Text message New digital
Email New digital
2. Channel preferences and
their change
Kari Elkelä - Itella BI 2012-03-21 8
•Catalog or leaflet and newspaper distinctly most preferred reception channels for marketing
•Text message, phone call and door-to-door selling disfavored by a clear majority
•Choice of addressed letter for preferred channel distinctly diminished
•Catalog or leaflet and Internet increased most of their popularity
Marketing communication channel preferences in Finland, 2006 and 2010Share of preferred (top3) channels, %
64
49
31
30
29
26
24
20
19
4
3
1
1
55
53
24
44
30
23
19
16
23
5
5
1
1
Catalog or leaf let
Newspaper
Internet
Addressed letter
TV
Outdoor ad
Magazine
Unaddressed letter
Radio
Text message
Phone call
Door-to-door selling
0 10 20 30 40 50 60 70
2010
2006
Itel la Corp. KE 2010-08-06 GallupKanava, June 2010
Preferences according to channel's life
cycle, and mode of reception and use,
Kari Elkelä - Itella BI 2012-03-21 9
•Consumers prefer anonymous information search channels in the reception of marketing communication
•Attitude to anonymous reception channels is usually neutral
•Personal reception channels are considered least preferred because they are difficult to control
•Many consumers prefer letters, email and social media but on the other hand many others consider them
undesirable
PHASE OF
CHANNEL LIFE
CYCLE
RECEPTION AND USE MODE
Anonymous
information search
Anonymous
reception
Personal reception
New digital Internet search
services
Internet newspages Text message
Social media Email
Traditional
electronic
Radio Phone call
Television
Old paper
Catalog or leaflet
Unaddressed letter Addressed letter Newspaper
Magazine
Preference scale Favored Neutrally accepted Opinion separating
Less favored
Utilities and use of marketing communication channels
Kari Elkelä - Itella BI 2012-03-21 10
•The strength in new digital channels is environmental responsibility, in paper it is controllability
•A text message and phone call are considered to be worst in their properties
•The majority of the consumers uses most channels at least once a week
UTILITY FOR NEW DIGITAL
CHANNELS CHANNEL
Text message Email Internet search
services
Intenet
newspages
Social media Channel group
average
Informative Small Medium Medium Medium Medium Medium
Entertaining Very small Small Medium Medium Medium Small
Personal Very small Medium Medium Medium Small Small
Interactive Very small Medium Medium Medium Medium Medium
Controllable Pieni Medium Large Large Medium Medium
Environmentally responsible Large Large Large Large Medium Large
Uses at least once a week 78 % 86 % 83 % 78 % 45 %
UTILITY FOR TRADITOINAL
ELECTRONIC CHANNELS CHANNEL
Radio Television Phone call Channel group
average
Informative Medium Medium Medium Medium
Entertaining Medium Medium Very small Small
Personal Medium Medium Very small Small
Interactive Medium Medium Small Small
Controllable Medium Medium Very small Medium
Environmentally responsible Large Medium Medium Medium
Uses at least once a week 83 % 91 % 83 %
UTILITY FOR OLD PAPER
CHANNELS CHANNEL
Newspaper Magazine Catalog or
leaflet
Addressed letter Channel group
average
Informative Medium Medium Medium Medium Medium
Entertaining Medium Medium Medium Small Medium
Personal Medium Medium Medium Medium Medium
Interactive Medium Medium Medium Small Medium
Controllable Large Large Large Medium Large
Environmentally responsible Medium Medium Medium Medium Medium
Uses at least once a week 88 % 66 % 51 % 41 %
3. Explanatory models for
channel preferences
Kari Elkelä - Itella BI 2012-03-21 12
Process model of consumer preferences for
marketing communication channels
•Formation of consumer preferences for communication channels is continuous process
•Communication channels are used because of expected utilities
•The use experiences produce observations from perceived utilities
•These perceived utilities affect as feedback what utilities are expected in the future
•This forms a process which maintains, strengthens and weakens channel preferences. Especially,
launching a new channel can change these preferences
•All kind of use of communication channels have also an effect on marketing channel preferences
Use of
communication
channel
Perceived utility
received through
communication
channel
Utility sought
through
communication
channel
COMMUNICATION IN GENERAL
Kari Elkelä - Itella BI 2012-03-21 13
Process model of consumer preferences for
marketing communication channels
Use of
communication
channel
Perceived utility
received through
communication
channel
Consumer
preferences for
marketing
communication
channels
Importance weight for
marketing channel
utility
Expectation value of
marketing utility for
each channel
COMMUNICATION IN GENERAL MARKETING COMMUNICATION
•Consumers prefer marketing communication channels according to expected utilities weighed with their
evaluated importance
•Routine use of communication channels has also an effect on preferences of marketing communication
channels
•The changes in preferences are relatively slow because the consumers tend to continue their routines
•In the background of the model are theories of uses and gratifications, reasoned action, subjective
quality and expectation-confirmation
Utility sought
through
communication
channel
Kari Elkelä - Itella BI 2012-03-21 14
Explanatory model of consumer preferences
for marketing communication channels
Expcted utilities of marketing
communication channels
weighted with their importance
Informative
Entertaining
Personal
Interactive
Controllable
Environmentally responsible
Utility from regularity
of use of each
communication
channel
Perceived utility
from product and
offer information
Channel-specific utilities explain the channel preferences for marketing communication:
•Information, entertainment, person and interaction utilities are adapted via uses and gratifications theory
by McQuail
•Controllability and the environmental responsibility are are adapted via other theories and empiric results
Model includes two additional utility variables:
•Regularity of use of communication channel, and perceived utility from marketing information
Consumer
preferences for
marketing
communication
channels
General preference model for all marketing
communication channels
Kari Elkelä - Itella BI 2012-03-21 15
•Estimated model includes all variables from the theoretical model
•First four variables have best explanation force according to Beta coefficients, controllable is the best
•Explanation per cent in all variable model is 33%
EXPLANATORY MODEL FOR VARIABLE:
Consumer preference for marketing
communication channels
Unstandardized Standard-
ized
Beta
t Sig. Collinearity
B Std. error Tole-
rance
VIF
Constant 1,311 0,119 10,987 0,000
Weighted exp.value: personal 0,016 0,003 0,118 6,122 0,000 0,256 3,908
Weighted exp.value: controllable 0,023 0,001 0,200 15,869 0,000 0,597 1,674
Regularity of use of messaging channel 0,253 0,016 0,164 16,106 0,000 0,912 1,097
Weighted exp.value: entertaining 0,019 0,002 0,153 9,216 0,000 0,344 2,904
Weighted exp.value: environment.responsible -0,011 0,001 -0,093 -9,078 0,000 0,897 1,114
Utility from marketing information 0,111 0,017 0,071 6,418 0,000 0,785 1,273
Weighted exp.value: informative 0,011 0,002 0,091 6,148 0,000 0,438 2,284
Weighted exp.value: interactive 0,007 0,002 0,051 2,916 0,004 0,307 3,259
SUMMARY FOR STEPWISE REGRESSION Variable added with each step Explan-
ation
(R 2)
Correct-
ed
R 2
Std. error
of
estimate
Change statistics
R 2
change
F
change
df1; df2 Sig. F
change
Weighted exp.value: personal 0,241 0,241 2,455 0,241 2225,463 1; 7009 0,000
Weighted exp.value: controllable 0,277 0,276 2,397 0,036 345,239 1; 7008 0,000
Regularity of use of messaging channel 0,305 0,304 2,351 0,028 281,716 1; 7007 0,000
Weighted exp.value: entertaining 0,319 0,319 2,326 0,014 147,260 1; 7006 0,000
Weighted exp.value: environment.responsible 0,325 0,324 2,317 0,006 60,168 1; 7005 0,000
Utility from marketing information 0,330 0,329 2,308 0,005 55,221 1; 7004 0,000
Weighted exp.value: informative 0,334 0,333 2,301 0,004 42,667 1; 7003 0,000
Weighted exp.value: interactive 0,335 0,334 2,300 0,001 8,500 1; 7002 0,004
Explanatory model of consumer
preferences for marketing
communication channels
R 2
%
Standardized Beta-coefficients
Inform-
ative
Entertain-
ing
Personal Inter-
active
Controll-
able
Environ-
mentally
respons-
ible
Regular-
ity of use
of mess-
aging
channel
Utility
from
product
and offer
inform-
ation
TOTAL 33,4 0,091 0,153 0,118 0,051 0,200 -0,093 0,164 0,071
CONSUMER GROUPS
Female 32,1 0,054 0,172 0,117 0,060 0,219 -0,138 0,151 0,054
Male 34,9 0,121 0,149 0,141 0,180 -0,044 0,182 0,088
15-24-year-olds 34,8 0,185 0,097 0,156 0,154 -0,054 0,198
25-34-year-olds 34,8 0,150 0,169 0,260 -0,113 0,054 0,078
35-49-year-olds 35,1 0,138 0,180 0,111 0,075 0,169 -0,107 0,170
50-60-year-olds 38,7 0,253 0,172 0,237 -0,059 0,217
Over 60-year-olds 32,0 0,116 0,099 0,103 0,180 -0,050 0,264 0,101
Low level education 32,4 0,122 0,134 0,135 0,152 -0,065 0,230 0,048
Middle level education 37,3 0,069 0,173 0,193 0,179 -0,117 0,197 0,099
High level education 33,6 0,115 0,142 0,071 0,077 0,263 -0,078 0,095 0,069
Lives in small town 35,7 0,142 0,135 0,085 0,255 -0,061 0,198 0,073
Lives in middle-sized town 33,9 0,114 0,202 0,129 0,151 -0,101 0,203 0,054
Lives in big town 32,3 0,119 0,142 0,133 0,212 -0,099 0,111 0,099
Opinion leader 34,3 0,245 0,099 0,124 0,156 -0,099 0,171
Follower 32,7 0,055 0,141 0,132 0,095 0,192 -0,088 0,155 0,057
CHANNEL CROUPS
Paper messaging 36,3 0,236 0,107 0,070 0,089 0,233 0,128
Traditional electronic 34,0 0,069 0,248 0,130 0,134 -0,082 0,166 0,072
New digital 32,0 0,093 0,107 0,180 0,167 -0,038 0,196 0,050
Targetted messaging 29,9 0,237 0,111 0,116 0,147 -0,073 0,041 0,072
Advertising mass com 33,5 0,163 0,179 0,242 -0,073 0,151 0,098
Journalistic mass com 33,8 0,093 0,100 0,112 0,056 0,113 -0,063 0,289 0,105
Infromation search 31,9 0,200 0,146 0,155 -0,039 0,200 0,124
Reception 31,2 0,038 0,193 0,115 0,097 0,112 -0,060 0,172 0,075
Kari Elkelä - Itella BI 2012-03-21 16
Preference models for consumer and channel groups
•General explanation model is validated by consumer and channel group models. Their explanation per cents
are on the same level and they include the same explanatory variables (seven of possible eight on an average)
•Presence of controllability in all subgroup models emphasizes its significance
Effect of regular use
is emphasized with
age
Need for control is
emphasized with
education
information is most
important for opinion
leaders
The controllability is
emphasized in the
clean advertising
History in life cycle:
information >
entertainment >
interaction
4. Controllability as the best
explanatory variable for
preferences
Kari Elkelä - Itella BI 2012-03-21 18
Channel control is most important for
consumers
• The consumers themselves say that controllability is the most
important utility in channels
• Controllability has the strongest influence on the realized channel
preferences
• Many channels are highly controllable eg. Internet, papers, catalogs
and brochures
• In their own words consumers tend to complain about attacking push
marketing, and interrupting of another more important doing, which are
opposites of controllability
Ranking for utilities from marketing communication channels
Utilities which consumer
says important
Utilities according to which
consumers prefer channels
Utilities in which channel
are considered most
successful
Controllable Controllable Controllable
Informative Regularity of use Envíronmental responsibility
Envíronmental responsibility Entertaining Informative
Personal Personal Interactive
Kari Elkelä - Itella BI 2012-03-21 19
Controllable marketing communication
channel is
1. Transferable
– Received message can be easily stored and it is possible to move
acquaintance with it on better suitable time
2. Disregardable
– Uninteresting marketing causes as few troubles as possible
3. Unobstrusive
– Channel neither disturbs consumer's normal daily routines and is
nor considered attacking push marketing
Kari Elkelä - Itella BI 2012-03-21 20
Perceived controllability of marketing
communication channels
•Anonymous information search channels are regarded as most controllable
•Personal reception channels are reacted most critically. For this reason successful marketing in
these requires especially good know-how
•All the paper channels are at least a middle level in their controllability
•Poorly controllable channels are found among traditional electronic and new digital channels
PHASE OF
CHANNEL LIFE
CYCLE
RECEPTION AND USE MODE
Anonymous
information search
Anonymous
reception
Personal reception
New digital Internet search
services
Internet newspages Text message
Social media Email
Traditional
electronic
Radio Phone call
Television
Old paper
Catalog or leaflet
Unaddressed letter Addressed letter Newspaper
Magazine
Scale for
controllable
Large Medium Small
Very large Very small
5. Summary and
conclusions
Research theoretical contributions
1. Process model of consumer preferences for marketing
communication channels
2. General explanation model of consumer preferences for marketing
communication channels
3. Finding of the controllability utility which explains channel
preferences best and specifying of the concept
4. Commensurable comparison of marketing communication channels
and developing of the tools needed in it
Kari Elkelä - Itella BI 2012-03-21 22
Commercial recommendations
• The consumers' different channel preferences and their changes
should be taken in attention when marketing communication is
planned
• In targeted marketing should be better utilized buying behavior, phase
of life and other information that has already been collected from the
customers
• Be careful not to roll too much marketing to well-paid and wealthy
• All marketing channels should be treated impartially in planning
• Don't hurt consumer's feelings of the independence and
controllability, when taking into use new channels
• Be careful with research results which praise effectiveness of new
channels and have been done in different target groups and with
different samples
Kari Elkelä - Itella BI 2012-03-21 23
Restrictions of results and further study
proposals
• Because of large number of channels in comparison the preferences were
examined at a general level without taking into consideration situation factors,
message contents, or the phase of buying process
• The classification of channels according to the properties is not absolute but was
done as a rule (sometimes for example a reception channel can serve as an
information search channel)
• Research was done from the point of view of consumer and also new digital
channels were examined but the huge possibilities of social media were not
highlighted
• Further study is needed:
– Preconditions, mistakes and developing means for targeted marketing
– Reasons for marketing prohibitions and means to prevent and remove them
– Effect of a social media and social filtering on the marketing
– Commensurable international comparison of channel preferences and their
change
– Qualitative study to understand occurred and expected changes
Kari Elkelä - Itella BI 2012-03-21 24
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