Consumer Economics Chapter 7 Decision Making and Advertising Copyright©2009 Taylor & Francis Group, an informa business
Learning Objectives Discuss decision making in consumer behavior Explain three main types of decision making Understand advertising in relation to buying decisions and sustainable behaivor Describe the government agencies that impact advertising Know the pros and cons of advertising in relation to consumers Understand the value of social marketing and public service announcements
Introduction Consumers make decisions every day How consumers make decisions is important Advertising influences consumer decision making
Decision Making Takes Time Decision making is choosing between two or more alternatives Consumers try to make good decisions; but it is hard to do Consumer decisions involve trading time and money for goods and services Copyright©2009 Taylor & Francis Group, an informa business
Three Types of Decision Making Styles Habitual decision making Extended decision making Limited decision making
Theory and Style Preference The role of self-concept Rules of thumb Self-esteem Uniqueness theory Style
What Affects Consumer Decisions? Technological Advances Obsolescence Impulse buying Consumerspace
Advertising and Social Influence Paid communication First, gain their attention Many different types of advertising Placement and timing is important
Advertising is Necessary, but Complex Use of color Repetition Consistency Memory devices Economic pros and cons of advertising Deceptive advertising The subconscious and subliminal advertising Distasteful advertising Infomercials Marketing to children
Government and Advertising The role of the FTC Advertising Legislation Cease-and-desist orders Counter Advertising
Social Marketing and PSAs Uses marketing to solve social problems Social marketing straetgies Public service announcements
Chapter Summary Are consumer decisions rational? Consumers make many complex decisions A multitude of influences Advertising plays role Marketing can hurt and help consumers