adman lecture 4
DESCRIPTION
Perspectives on Consumer BehaviorTRANSCRIPT
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Advertising Management
Lecture 4: Perspectives on Consumer Behavior
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Consumer Behavior
How people think about, buy, and use products as a response to MC messages
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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)
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Sociocultural FactorsSociocultural Factors
Social ClassSocial Class
All Consumers Are Human
AffectedBy:
AffectedBy:
Reference GroupsReference Groups
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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.
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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
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Reference groups
• Associations and organizations with which people identify or to which they belong and which influence their attitudes and behaviors.
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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
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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
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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
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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)
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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.
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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
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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
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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.
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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.
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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
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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.
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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)
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How Brand Decision Making Works... Cont’d
Step 3: Deciding what action to take
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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
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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.
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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