Beginning of Part 2 The Planning: Analyzing the Advertising and Integrated Brand Promotion Environment We have finished the Process phase of the text and moving on to Planning Our perspective changes from a broad view of advertising and IBP to a managerial view. The Planning phase leads to the development of advertising and IBP materials PPT 5-1

Advertising, Integrated Brand Promotion and Consumer Behavior Chapter 5 Advertising, Integrated Brand Promotion and Consumer Behavior PPT 5-2 © 2009 South-Western, a part of Cengage Learning

Consumer Behavior Perspectives: Consumer Behavior: a wide spectrum of things that affect, derive from, or form the context of human consumption. Perspectives: Consumers are Systematic Decision Makers Maximizing the benefits from purchases defines the purchase—consumers are deliberate Consumers are Active Interpreters Cultural/social membership defines purchases Consumers are “meaning makers” in their consumption PPT 5-3

Consumer Decision-Making: The Consumer as a Systematic Decision Maker The Consumer is: Logical Purposeful Acts in a “sequential” manner in making decisions PPT 5-4

The Consumer Decision-making Process Need recognition Functional or Emotional benefits Information Search and Evaluation Internal and External search Consideration Set Evaluative Criteria Purchase Does this ad offer a functional or emotional benefit? 4. Post-purchase use and evaluation Customer satisfaction Cognitive dissonance PPT 5-5

Cognitive Dissonance The feelings of doubt and concern after a purchase is made. Dissonance increases when The purchase price is high There are many close alternatives The item is intangible (example?) The purchase in important The item purchased lasts a long time PPT 5-6

Modes of Consumer Decision-Making: Vary by Involvement and Experience Interests and avocations Risk—high price or long term commitment High symbolic meaning to purchase Deep emotion attached to purchase Experience More experience, more astute consumer PPT 5-7

4 Modes of Consumer Decision-Making: (Vary by involvement and experience) Extended Problem Solving Deliberate, careful search Limited Problem Solving Common products, limited search 3. Habit or Variety Seeking Variety seeking—switch brands at random Habit—buy single brand repeatedly 4. Brand Loyalty Conscious commitment to find same brand each time purchase is made PPT 5-8

Key Psychological Processes in Advertising Attitude Over Overall evaluation of an object person or issue on continuum=like/dislike; positive/negative Brand Attitude Summary evaluations that reflect preferences for various products and services Salient Beliefs Small number of key beliefs. Five to nine salient beliefs typically form the critical determinants of attitude PPT 5-9

Key Psychological Processes Multi-Attribute Models (MAAMs) Evaluative Criteria: attributes consumers use to compare brands Importance Weights: priority assigned to attributes Consideration Set: group of brands that are focal point of decision effort Beliefs: knowledge and feelings consumer has about various brands PPT 5-10

Key Psychological Processes Information Processing and Perceptual Defense Cognitive Consistency Impetus: Strongly held beliefs to make efficient decisions Advertising Clutter: Large volume of ads causes overload Selective Attention: Most ads are ignored because they do not fit consumer’s need state Cognitive responses: Thoughts that occur to consumer at moment when beliefs are challenged by persuasive communication PPT 5-11

Key Psychological Processes The Elaboration Likelihood Model (ELM) “Central route” persuasion when involvement is high “Peripheral route” with peripheral cues rather than strong arguments when involvement is low PPT 5-12

Perspective Two: The Consumer as Social Being Perspective One: The consumer as a decision maker can tells only part of the story. Consumption can be a social and cultural process as well PPT 5-13

Consuming in the Real World Values Family Object Meaning Social class Rituals Gender Community Geo-politics Culture Race / Ethnicity Reference Groups (membership/aspiration) PPT 5-14

Advertising, Social Rift and Revolution Advertisers see and seize the opportunity to provide “costumes” and “consumables” “Revolutions” require a certain “look” “Looks” signal political/social orientation PPT 5-15

Advertising as Social Text: How Ads Transmit Socio-cultural Meaning Culturally constituted world Advertising / fashion system Fashion system Consumer goods Possession ritual Exchange Grooming Divestment PPT 5-16 Individual consumer

Factors Affecting Consumer Decision Making REFERENCE GROUPS VALUES / ATTITUDES SITUATIONAL FACTORS CULTURE NEEDS CONSUMER DECISIONS EDUCATION PLEASURE PAST EXPERIENCE SUBCULTURES FAMILY MEDIA NEWS MAGAZINES RADIO TELEVISION DIRECT MEDIA BLOGS INTERNET INFO GENDER LIFE-STYLE SOCIAL CLASS PRICE PACKAGING ADVERTISING PROMOTION PERSONAL SELLING MARKETER- CONTROLLED STIMULI PERSONALITY PPT 5-17