Communication and Consumer Behavior CHAPTER 9 Communication and Consumer Behavior

Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall INTRODUCTION Communication is the transmission of a message from a sender to a receiver via a medium of transmission. The five basic components of communications are: sender, receiver, medium, message and feedback. Here is an outline of the topics for Chapter Seven. Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall Chapter Seven Slide

The Source as Message Initiator Communications: Product awareness, induce purchase & attitude, show its position in market Initiator of communication can be formal or informal. A formal communications source represents either a for-profit or not-for-profit organization. An informal source might be a friend who gives product information or advice. Online social networks Word-of-mouth communication

Impersonal & Interpersonal Communications Sources of impersonal communications: organizational messages through marketing departments, ads or public relations agencies Sources of interpersonal communications: Either formal or informal. Persuasive impact of personal & interpersonal message is source’s credibility.

Source Credibility Perceived honesty & objectivity of sponsor of communication have influence on how communication is accepted by receiver

Reference Groups Serve as individuals reference in their consumption decisions Normative reference groups influence broadly defined values Comparative reference groups influence specific defined attitudes Membership group: group to which a person belongs symbolic group: group in which individual is not likely to receive membership, despite acting like a member

Credibility & Dynamics of Informal Sources & Word Of Mouth Informal communications named as opinion leadership. Opinion leadership: one person informally influences actions of others, can become an opinion receiver or wow Informal communications are a two-way process named word-of-mouth (WOM)

Consumer Message Boards & Weblogs Many Web portals enable people to post information on about anything online. A blog is a personal online journal initiated and managed by a blogger Online journals are now the most powerful exchange of consumption information Marketers have virtually no control over the information exchange these forums.

Strategic Marketing Applications Of WOM WOM is more effective than paid promotional sms E-WOM brought upon a huge surge in the amount of money and creativity devoted to campaigns and strategic initiatives centered on WOM It includes: Buzz agents Viral marketing E-referrals Recommendations

Buzz Agents Many firms enlist typical consumers to serve as their buzz agents Buzz agents promote products by bringing them to family gatherings, read books… Buzz agents do not receive payment but are motivated by being called upon to serve as opinion leaders.

Viral Marketing Viral marketing: e-mail message to others creating potential for exponential growth in the message’s exposure and influence. Another effective form of viral marketing is online referrals and recommendations. Highly successful e-merchants attach links encouraging users to send notices of their selections to their friends.

Credibility of Formal Sources, Spokespersons & Endorsers Source credibility are judged up on past performance, reputation, product quality, attractiveness of spokesperson & promotions Institutional advertising used to promote a favorable company image rather than a specific product Not-for-profit sources are more credibile than profit sources. Marketers often use celebrities as endorsers of offerings

Relationship between effectiveness of sms & endorser: Effectiveness of spokesperson is related to message itself Synergy between endorser and type of product is very important Endorsers who have demographic characteristics that are similar to those of the target audience are viewed as more credible

Vendor Credibility Reputation of the retailer who sells the product has a major influence on message credibility. Consumer’s previous experience with product or vendor has a major impact on the credibility of the message

Medium Credibility The reputation of the medium that carries the ad also enhances credibility of message. There is no single answer as to which medium has the most credibility.

Effects of Time on Credibility: Sleeper Effect When information is transferred from short-term memory to cerebral cortex, over time, it is separated from context in which it was learned. This is called source amnesia or the sleeper effect. Though a high-credibility source is initially more influential than a low-credibility source

Involvement & Congruency A person’s level of involvement determines how much attention is paid to the message. Mood A consumer’s mood affects way in which a sms is perceived, recalled, and acted upon. It is often influenced by the context in which the ad message appears & content of ad itself

Barriers to Communication Selective Exposure to Messages Ignore ads that have no interest to them. Technology provides consumers with means to control their exposure Psychological Noise Competing ads or distracting thoughts Way to overcome it is to: Repeat exposure to the message. Use contrast

Media: Channels for Transmitting sms Medium is the channel or way sms is communicated. Impersonal communications channel, such as a mass medium like a newspaper Interpersonal communications channel—an informal conversation between two friends Mass media are classified as print (newspapers, magazines), broadcast (radio, TV), electronic (Net) New media include new communication tech

Targeting Consumers through Mass Media Selecting appropriate audience is key of a communications strategy. Public relations used to broadcast favorable info about company & to suppress unfavorable Media strategy is essential of a communications plan. It calls for the placement of ads in the specific media read, viewed or heard by targeted audience. Consumer profile includes specific media read or watch by targets

Targeting Consumers through New Media New media are more dynamic than traditional . Messages are: Addressable Interactive Response-measurable New media is called “unmeasured media” because companies monitoring ads expenditures have not developed means for computing money spent on each “unmeasured” medium separately.

Out-of-Home & On-the-Go Media This category consists of new promotional tools as well as some older means updated with new tech It targets mobile customers & includes: Captive advertising screens placed in buildings Digital billboards and displays Ambient advertising

Online & Mobile Media Called consumer-generated media and mobile advertising. It includes all ads reaching consumer online and on any mobile Theses message-transmission tools include search engines, online & e-direct marketing. Sends addressable, customized sms based on data gathered from tracing consumers’ surfing Addressable communications or narrowcast sms

Interactive TV Interactive TV (iTV) : TV & interactivity of Web. Two-way communication between subscriber / provider More personal & dynamic than one-way TV programs iTV is most advanced form of new media because it allows interactivity between sender / receiver, & permits marketers to measure results

Designing Persuasive Messages Message can be verbal, (spoken or written) or nonverbal (a photograph, or a symbol), or a combination of the two. Message is thought, idea, attitude, image, or other information that the sender wishes to convey to the intended audience

Message Structure & Presentation Message design include: Ads resonance : wordplay, often used to create a double meaning, in combination with a relevant picture. Positive message framing showing benefits to be lost by not using the product (negative message framing) One-sided messages versus two-sided messages tell consumers only good points (benefits). Two-sided messages tell consumers both good & bad points when audience is unfriendly & likely to hear opposing claims

Message Structure & Presentation Order Effects—order in which a message is presented affects audience receptivity. Commercials shown first are recalled best, those in the middle the least. Magazines recognize order effects charging more for ads on front, back, & inside magazines covers If audience interest is low, the most important point should be made first to attract attention. Product benefits can be arranged in ascending order, with the most important point mentioned last.

Comparative Advertising Advertising Appeals Comparative Advertising Claims product superiority for brand over explicitly named or implicitly identified competitors It is useful in exerting positive effects on brand attitudes, purchase intentions, & actual purchases. . Downside to comparative ads is that they assist recall of competitor’s brand at expense of advertised brand. Positively comparative ads were found to elicit higher levels of cognitive processing activity

Fear is an effective appeal used in marketing Some researchers found a negative relationship between intensity of fear and ability to persuade. Strong fear appeals tend to be less effective Marketers must also consider that the mention of possible detrimental side effects of using a product while proclaiming its benefits may result in negative attitudes

It increases persuasiveness of communication Humor It increases persuasiveness of communication It should be used selectively Attracts attention Does not harm comprehension Does not increase credibility More relevant when related to the product More effective in ads of existing products than in new products More effective in targeting consumers that already have a positive attitude

Abrasive Advertising Abrasive Ads: when sponsor’s credibility is established & sms highly persuasive All of us have been repelled by so-called agony commercials, which depict in diagrammatic detail the internal and intestinal effects and… Nevertheless, pharmaceutical companies often run such commercials

Audience Participation Audience Participation—the provision of feedback changes the communications process from one-way to two-way communication. Senders will know whether & how well communication has taken place. Important to receivers enabling them to participate Participation by the receiver reinforces the message.

Feedback determines Message’s Effectiveness Feedback is essential component of interpersonal & impersonal communications. It may reinforce, change, or modify sms to ensure that it is understood with interpersonal communications you can obtain immediate feedback thru verbal as well as nonverbal cues. To evaluate impact of ads SMS, marketers measure exposure effects ( nb of consumers exposed ), persuasion effects ( if understood?), sales effects (increased sales?)

Media & Message Exposure Measures IT assess how many consumers received SMS and construct a profile of those who received it. Tools used to monitor total media exposure are portable people meters – small, GPS-enabled personal devices. Owners of sites use media exposure measures to determine size of audiences & set rates they charge

Message Attention, Interpretation & Recall Measures Psychological measures track bodily responses to stimuli. Attitudinal measures test consumers’ cognitive response to sms, including his levels of engagement Researchers use day-after recall tests: viewers of TV shows or listeners to radio are interviewed a day after watching or listening to program.