communication and consumer behavior

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Chapter 9

Communication &

Consumer Behavior

Prepared By:

Mr. Nishant Agrawal

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Chapter Outline

• Components of Communication

• The Communication Process

• Designing Persuasive Communications

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Basic Communication ModelFigure 9.1

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The Communications Process

• The Message Initiator (the Source)

• The Sender

• The Receiver

• The Medium

• The Message

• The Target Audience (the Receivers)

• Feedback - the Receiver’s Response

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The Message Initiator (source)

• Credibility of Informal Sources

• Credibility of Formal Sources

• Credibility of Spokespersons and Endorsers

• Message Credibility

• Includes word of mouth

• These sources also called

opinion leaders

• Casual sources may not

always be credible

Issues with Credibility

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The Credibility and Dynamics of Informal Source and WOM

• Opinion leadership is process by which one person

informally influence the action or attitude of others who

may be opinion seekers

– They often base their product comments on firsthand

experience, their advice reduces the opinion receivers

perceived risk

– They tend to category specific that is opinion leaders often

specialize in certain product category about which they

offer information and advice.

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Discussion Question

• How have informal sources affected your decision

as a consumer?

• Which informal sources are the most powerful?

Why? When?

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• Source credibility judged on

past performance, reputation,

service, quality, spokesperson

image, retailers, social

responsibility


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• Effectiveness related to:

– The message itself

– Interaction between endorser

and type of product

– Demographic

– Corporate credibility


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Discussion Question

• Who do you consider credible spokespeople?

• Why?

• Can you think of certain ads with credible

spokespeople?

• Ads with spokespeople who are NOT credible?

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• Credibility of retailers

• Reputation of the medium that

carries the ad

• Consumer’s previous

experience with product


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Sleeper Effect / source

amnesia

The idea that both

positive and negative

sincerity effects tend

to disappear after a

period of time.

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The Target Audience (receivers)

• Personal characteristics and understanding

• Involvement and congruency / agreement

– How much attention is paid to the message and how carefully it is

decided.

• Mood (cheerfulness or unhappiness )

• Barriers to communication

– Selective experience to messages

– Psychological noise

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Opinion Leader as Thought Leaders• Opinion leadership is process by which one person

informally influence the action or attitude of others who may

be opinion seekers.

• Why is Opinion Leader Topical / Relevant?

– Opinion leadership is becoming a high priority strategy for brands.

Buzz or word-of-mouth consumer referrals and viral marketing are

some of the strategies strongly linked to opinion leadership.

– Opinion leadership provides the credibility that support consumer

confidence in brands.

– Opinion leadership involves the informal communication of one

consumer (leader) to another consumer (opinion seeker).

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Targeting Consumers Through New Media

1. Addressable– Customized and addressed to particular receiver

2. Interactive– Receivers can interact with sender during its transmission

3. Response measurable– Receiver’s response to a promotional message Can be measured

more precisely

– Online and mobile media

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Designing Persuasive Communications

• Communications strategy

– Must include objectives

– Includes cognitive models

– Newer models include perception, experience, and

memory

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• Target Audience

– Segmentation is key

• Media Strategy

– Consumer profile

– Audience profiles

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Excerpts from Table 9.1 Persuasive Capabilities and Limitations of Major Media (Magazines)

• Highly selective

• Selective binding

possible

• High quality production

• High credibility

• Long message life

• High pass-along rate

• Long lead time

• High clutter

• Delayed and indirect

feedback

• Rates vary based on

circulation and

selectivity

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Excerpts from Table 9.1 Persuasive Capabilities and Limitations of Major

Media (Television)• Low costs per contact• Long lead time• High clutter• Short message life• Viewers can avoid

exposure with zapping, etc.

• Day-after recall tests for feedback

• Large audiences possible

• Appeals to many senses

• Emotion and attention possible

• Demonstration possible• Very high costs overall

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• Message Strategy

– Involvement theory

• Central and peripheral routes

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• Resonance• Message framing• Comparative

advertising• Order effects

• Used to create a double

meaning when used

with a relevant picture

Message Structure and Presentation

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• Positive framing

• Negative framing

• One-sided vs. two-sided


This ad uses negative framing.

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• Marketer claims product

superiority over another

brand

• Useful for positioning


A comparative

ad

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Discussion Question

You are a marketer for your college/university.

• How could you use comparative

advertising?

• Do you think it would be effective?

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• Order of benefits– Primacy

• First Product greater effect

– Recency• Last product greater effect


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Emotional Advertising Appeals

Fear

Humor

Abrasive advertising

Audience participation

Celebrities

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Table 9.2 Impact of Humor on Advertising

•Humor attracts attention.•Humor does not harm comprehension.•Humor is not more effective at increasing persuasion.•Humor does not enhance source credibility.•Humor enhances liking.•Humor that is relevant to the product is superior to humor that is unrelated to the product.

•Audience demographic factors affect the response to humorous advertising appeals.

•The nature of the product affects the appropriateness of a humorous treatment.

•Humor is more effective with existing products than with new products.

•Humor is more appropriate for low-involvement products and feeling-oriented products than for high-involvement products.

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End of Session

“Success is walking from

failure to failure with no loss of

enthusiasm”

communication and consumer behavior

Education