Consumer Behavior
How does psychology and behavior impact
promotions?
The Communication Process
• Source• Communication objective• Message• Message channel• Target Audience• Communication Outcome• Feedback• Noise
Communication Process in Advertising and Promotion
• Source – advertising (retailer, manufacturer); PR (newspaper reporter, competition, manufacturer, retailer)
• Communication Objectives (awareness, influence behavior, recall)
• Message (via advertisements, POP display)
Communication Process in Advertising and Promotion
• Message Channels – (media, salesperson)
• Communication Outcome – Brand Awareness, Attitude change, brand associations, trial
• Receiver – Target Audience
• NOISE – interferes and interrupts the communications process
Who Are Consumers?
• People who buy products
• People who use products
• Example: Mom buys the cereal but the kids consume and influence decision
Major Influences on Consumers
• External Influences– Culture
– Social Class
– Reference Groups
– Family
• Personal Influences– Age
– Sex
– Family Status
– Occupation
• Psychological Influences– Attitudes
– Perception
– Needs
Culture• Complex of tangible
items such as art, literature, clothing, music and intangibles such as law, values, customs that define a group of people and their way of life.
Social Class
• Position that you and you family occupy within society
• Determined by:– income
– occupation
– wealth
– family prestige
– value of home
Reference Groups• Collection of people
that you use as a guide for behavior in specific situations.
• 3 Functions– provide information
– means of comparison
– furnish guidance
Family• 2 or more people living in a house related
by blood, marriage, or adoption
• Provides economic, financial and emotional support
• Determines Lifestyle
Personal Influences
• Age• Gender• Family Status• Education• Occupation • Income• Race and Ethnicity
Perception
• The process by which an individual receives, selects, organizes and interprets information to create a meaningful picture of the world.
• Individualized process where information is filtered and screened for interpretation
Selective Exposure• Consumers choose
whether or not to make themselves available to information.– Example: in the
Golden Age of TV networks ads could reach 70% of audience
Selective Attention
• Consumer chooses to focus attention on certain stimuli while excluding others.– Example: average
consumer exposed to 3,000 – 20,000 promotional messages a day
Selective Comprehension
• Consumers tend to interpret information in a manner that will support their own, attitudes, beliefs, motives, and experiences.
Selective Retention
• Final screening process.
• Consumers do not remember all that they see, hear, or read even after attending and comprehending it.
Psychological Influences
• Elaboration Likelihood Model– Attitudes– Behavioral
Intentions– Involvement
• Needs – Maslow’s Hierarchy of Needs
Attitudes
• learned predisposition to think in a certain way about a person, product, service or idea
• based on:– personal factors -social class– cultural factors -race– educational factors– familial roots– religious factors
Elaboration Likelihood Model
• model that allows marketers to predict routes to persuasion
• route to persuasion based on two moderating variables:– motivation (involvement)– ability to comprehend
• central and peripheral routes are the ends of an elaboration continuum
ELM• Elaboration
– amount of issue relevant thinking done by the consumer
• Involvement– personal motivation
to “think”
– reflects risk and how close the issue ties to the ego
Peripheral Route
• Affective Route - Zajonc
• reflects lower levels of involvement or lack of ability to process
• outcome is attitude toward the ad
• attitudes less resistant or persistent than those formed centrally
• relies on cues such as sex, celebrities, music color, visuals to persuade
Peripheral Route
• Most effective forms of advertising will be:– tv
– radio
– celebrity endorsers
– mood oriented print ads
– sex
Hedonic Needs
• Attend to messages that make us feel good.
• Hedonic Consumption– stimulus cues
consumption of memories
• I.e., perfume and an old girlfriend
Central Route
• high levels of involvement• higher levels of ability to process• may reflect a natural desire to be cognitive• cognitive route to persuasion• outcome is an attitude toward the brand• attitudes formed centrally are more
resistant and persistent
Central Route
• reflected by the Fishbein Model of Attitude Formation
• best forms of advertising– print
– cognitive
– product information provided
Fishbein Model Attitude Changes
• Change a belief– Very difficult to change an initial negative
impression
• Change the Importance of the Evaluative Criteria
• Add a new BiEi Combination– BEST! Improves your position and hurts
everyone else!
Multi-Stage Memory Theory
• Sensory Memory– Physical Property Analysis
• Short Term Memory– Assign some meaning to the new input
– Combines with long-term stores
• Long-term Memory– Unlimited memory store
Techniques to Enhance Memorability
• Repetition– Frequency
• Jingles
• Slogans
• Taglines
• Logos
Maslow’s Hierarchy of Needs
• Motivation - internal force that stimulates the person to act in a certain manner.
• Needs- the basis of motivated behavior
Maslow’s Hierarchy
• Self-Actualization - Fulfillment
• Ego Needs - success, achievement
• Social Needs - affection, friendship
• Safety and Security Needs - protection, order, stabilization
• Physiological Needs - food, water, shelter, sex