Advertising and Consumer Behavior

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					              Chapter 5
              Advertising and
              Consumer Behavior




            Factors Influencing the need for an
                   Integrated Approach
             •   Fragmentation of the media
             •   Better audience assessment
             •   Consumer empowerment
             •   Increased advertising clutter
             •   Database technology
             •   Channel power
             •   Accountability




              Consumer Behavior

        Consumer Behavior: a wide spectrum of
        things that affect, derive from, or form the
        context of human consumption.
Perspectives:
1. Consumers are Systematic decision makers
   –   Maximize the benefits from purchases defines the
       response

2. Consumers are Active interpreters
   –   Cultural/social membership defines response


                                              Ch 5: Consumer Behavior 3




                                                                          1
Consumer Decision-Making:
 The Systematic Decision
         Maker
                           I think,
                           therefore
                           I buy




                                       Ch 5: Consumer Behavior 4




The consumer decision-making process
   1. Need recognition
       --Functional or Emotional benefits

       2. Information Search and Evaluation
              --Internal and External search
              --Consideration Set
              --Evaluative Criteria

                     3. Purchase
                           4. Post-purchase use and
                               evaluation
                                   Customer satisfaction
                                   Cognitive dissonance

                                       Ch 5: Consumer Behavior 5




   Modes of Consumer Decision-
             Making
            1. Extended problem solving

                2. Limited problem solving

                    3. Habit or variety seeking

                        4. Brand loyalty

                                       Ch 5: Consumer Behavior 6




                                                                   2
   Psychological Aspects of
         Advertising
   1. Brand Attitudes
         – Summary evaluations that reflect
           preferences for various products and
           services
   2. Salient Beliefs
         – Five to nine salient beliefs typically
           form the critical determinants of
           attitude


                                             Ch 5: Consumer Behavior 7




Key Psychological Processes
  1. Multi-Attribute Models (MAAMs )
     •    Analysis components include evaluative criteria,
          importance weights, consideration set, and beliefs

     2. Information processing and perceptual defense
          •   Major obstacles include cognitive consistency and
              advertising clutter (selective attention)

          3. The Elaboration Likelihood Model (ELM)
              • Central route persuasion in high
                involvement products
              • Peripheral cues rather than strong
                arguments shape attitudes toward low-
                involvement products
                                             Ch 5: Consumer Behavior 8




  Consumer as Social Being



                                                          I buy
                                                          what I
                                                           am




                                             Ch 5: Consumer Behavior 9




                                                                         3
Sociocultural Consumption
                                Values        Object
                   Family                    Meaning

          Social                                            Rituals
          class


    Community                                                 Gender


      Culture                                                 Society

                    Race /                        Reference
                   Ethnicity                       Groups

                                                  Ch 5: Consumer Behavior 10




Ads Transmit Sociocultural
        Meaning
                 Culturally constituted world
               Advertising //
               Advertising                        Fashion
                                                  Fashion
             fashion system
             fashion system                       system
                                                  system


                         Consumer goods

 Possession
 Possession              Exchange
                         Exchange        Grooming
                                         Grooming             Divestment
                                                              Divestment
   ritual
    ritual                 ritual
                           ritual          ritual
                                           ritual                ritual
                                                                 ritual


                     Individual consumer
                                                  Ch 5: Consumer Behavior 11




Factors Affecting Decision Making
REFERENCE           VALUES / ATTITUDES            CULTURE        SITUATIONAL
 GROUPS                                                            FACTORS


          NEEDS
                                                            EDUCATION
                               CONSUMER
                               CONSUMER
PLEASURE                       DECISIONS
                               DECISIONS                           PERSONALITY
           GENDER


                                                    MARKETER-
                                                    MARKETER-
                                                   CONTROLLED
 FAMILY          MEDIA      SOCIAL                   STIMULI
                            CLASS
                                        PAST
                                     EXPERIENCE
      NEWS                                                          PRICE
   MAGAZINES                                                      PACKAGING
     RADIO                                                       ADVERTISING
   TELEVISION                                                     PROMOTION
                      LIFE-STYLE
                      LIFE-
                      LIFE -STYLE          SUBCULTURES         PERSONAL SELLING
  DIRECT MEDIA



                                                  Ch 5: Consumer Behavior 12




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