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Advertising Management
Lecture 4: Perspectives on Consumer Behavior
Consumer Behavior
How people think about, buy, and use products as a response to MC messages
Consumer Response
• Prospects (those who have not bought the brand but who might be interested in it) vs. Current Customers (those who have purchased the brand at least once within a designated period.)
• Consumers (buy for their own personal or household use) vs. Business Buyers (buy on behalf of their organization)
Sociocultural FactorsSociocultural Factors
Social ClassSocial Class
All Consumers Are Human
AffectedBy:
AffectedBy:
Reference GroupsReference Groups
Factors that Affect Decision-Making
• Socio-cultural factors– Culture: group values based on traditions
and distinctive history– Society: a group of people who live
together and organize their lives as a community
– Social class: a ranking of people in a society by factors such as family history, occupation, education and income.
Factors that Affect Decision-Making (Social class)
Upper, upper
(1% of pop)
The highest class, “old rich”, well-known families
Upper (2% of pop) Professionals & businesspeople who have achieved financial success
Middle Professionals, small-business owners, corporate managers with comfortable incomes
Working class Lower-middle class or blue-collar workers who earn an average pay
Upper lower The “working poor”, who perform unskilled labor and menial work for minimal wages
Lower Poor, unemployed
Reference groups
• Associations and organizations with which people identify or to which they belong and which influence their attitudes and behaviors.
Reference Group Categories
Personal Family, friends, co-workers
Membership Clubs, churches, schools
Experts Opinion leaders, consultant, leading professionals
Aspirational Famous Entertainers, athletes, politicians
Disassociative Counterculture, gangs, antisocial people
Factors that Affect Decision-Making
• Personal Factors– Needs and wants: biological and psychological
motivations that drive actions.– Attitudes, Opinions, Beliefs
• Attitude: general disposition or orientation toward objects, people and ideas usually accompanied by negative or positive judgments
• Opinion: a specific judgment that is emotionally neutral• Belief: a thought or idea based on knowledge
Maslow’s Hierarchy of Needs
Needs Marketing & IMC Implications
Self-actualization: self-fulfillment, creative expression
Promote the enriching experience of travel, education, hobbies
Esteem: prestige, status, accomplishment, respect, recognition
Status appeal of cars, furniture, upscale electronics, country clubs, liquor, first class
Belongingness: love, friendship, acceptance
Lifestyle products, clothing, grooming aids, restaurants, and clubs
Safety: security, shelter, protection, order, discipline
Insurance, alarm systems, cavity protection, retirement, investments
Physiological: water, sleep, food, shelter
Survival necessities, utilities, medicines, basic food products
How Brand Decision Makers Respond to MC Messages
1. Hierarchy of Effects models: descriptions of a series of stages of response that brand decision makers move through
AIDA sequence (Attention, Interest, Desire, Action)
How Brand Decision Makers Respond to MC Messages…Cont’d
2. Think/Feel/Do Models Levels of involvement
• Low-involvement products-products that are relatively cheap and bought frequently without much consideration and are perceived as low risk.
• High-involvement products-products for which people perceive differences among brands and are willing to invest pre-purchase decision-making energy.
How Brand Decision Makers Respond to MC Messages…Cont’d
2. Think/Feel/Do Models Relevance- the extent to which a product
or its message is pertinent and connects with a customer’s personal interests
Risks• Financial• Performance• Physical• Psychological• Social
Think/Feel/Do Response Wheel
BRANDDECISIONPROCESS
THINK FEEL
DO
THINK:• Problem recognition• info search• evaluation
FEEL:• Attitudes
• Liking• Preferences
• Conviction• Satisfaction
DO:• Try• Buy• Other action response• Repurchase
Elaboration Likelihood Model
• Persuasion model based on involvement
• Elaboration: degree to which a customer thinks about a message and relate the information to their own lives as they make purchase decisions.
Elaboration Likelihood Model
Peripheral route process is based on such message factors as imagery, emotions, associations, celebrity spokespeople & music which creates interest in a message even if there is little interest in the product itself.
How Brand Decision Making Works
ProblemsAnd
Opportunities
Post-PurchaseEvaluation
andlearning
Cognitive Path(central processing)
Emotional Path(peripheral processing)
Habit/Repeat Path
Search for Information
Evaluate Choices
Evaluate feelings and experiences
Habit and loyalty
Purchase or take
some other action
Step 1 Step 2 Evaluation of Brand Alternatives Step 3 Step 4
How Brand Decision Making Works... Cont’d
Step 1: Recognizing a Problem or an Opportunity
Step 2: Evaluating Brand Alternatives– Awareness-getting a message past the
senses-the point of initial exposure-and into consciousness,
– Brand knowledge-understanding of a brand and its benefits.
How Brand Decision Making Works... Cont’d
Step 2: Evaluating Brand Alternatives– Two levels of brand awareness
• Recognition: identifying something and remembering that you saw or heard it earlier
• Recall: higher level of awareness, bringing something back from memory
– Evoked sets: a group of brands that comes to mind when a person thinks of a product category because the person has judged these brands to be acceptable. (Ex: Snacks: Indirect competition (nuts, cookies, chips, fruit, popcorn, candy), direct (nuts: almond, cashews, walnuts, peanuts)
How Brand Decision Making Works... Cont’d
Step 3: Deciding what action to take
Three paths to a brand decision
Type of decision making
Route Products
Cognitive processing
Think / feel / do Car, major appliances, high-involvement and new products
Experiential processing; impulse, experiences
Do / feel / think
and
Feel / do / think
Snacks, beverages, cigarettes, small household items /
Restaurants, sporting events, trade shows, new products where sampling & demo are impt.
Habit/repeat processing
Do / think /feel B2B supplies, routine purchases, repeat purchases leading to brand loyalty
How Brand Decision Making Works... Cont’d
Step 4: Evaluating the Purchase decision or other action– Learning-a change in what a person knows that
comes from exposure to new information or experiences.
– Cognitive learning theory-a view of learning as a mental process involving thinking, reasoning, and understanding.
– Conditioned learning theory-a view of learning as a trial-and-error process.
How MC Messages Influence Consumer Decisions
• Persuasion-the act of creating changes in attitudes and behaviors.– Attitude formation & attitude change
• Direction: whether the feeling is positive or negative• Degree of conviction: how sure customers are about
their attitudes, how strong their feelings are
– Brand likability– Credibility and trust– Believable arguments and reasons