1. Communication & Consumer Behavior MKT 3850 Dr. Don Roy

2. What We’ll Discuss 1.Application of traditional communications model to marketing 2.Theories of how promotion impacts consumer behavior 3.Cognitive buying decision process and how promotion can influence behavior at each stage of the process

3. Traditional Communication Model Source (Encodes) MessageChannel Receiver (Decodes) Noise (Disruptions) Feedback

4. Who Can Be a Message Source? Personal Sources:  Salesperson  Celebrity Endorser  “Average Person” (Testimonial)  Models  Characters/Animals  “Buzz Agents” “Buzz Agents” Non-Personal Sources:  A company  News Media (for PR messages)

5. Assessing Source Characteristics  Source Credibility 1) How trustworthy is the source? 2) Is the source knowledgeable?  Source Attractiveness 1) Physical attractiveness 2) Perceived similarity between source and receiver 3) Source is liked by receiver

6. Selecting a Channel: Some Options Traditional Media:  Radio  Newspaper  Television  Magazines  Direct Mail  Salesperson  News Media (PR) Nontraditional Media:  Internet  E-mail  Blogs  Podcasts  Mobile (Cell phones)  Sponsorship  Product Placement

7. Noise Any disruption to the communication process: 1.Competitive brands 2.Multiple messages competing for customer attention (a.k.a. message clutter) 3.Flawed execution (poor encoding) 4.Inconsistencies and contradictions 5.Sources internal to receiver (distracted, daydreaming, “lazy listener”)

8. Feedback to Marketing Messages  Create brand awareness  Store brand associations in memory  Develop brand beliefs  Engage in word-of-mouth  Visit a web site  Call a toll-fee telephone number  Visit a retailer  Make a purchase

9. Consumer Response to Brand Messages: Hierarchy-of-Effects Models  Brand messages can be used to influence and persuade in decision making process… THAT’S GREAT NEWS!  Hierarchy-of-Effects models explain stages of response when making a purchase decision.  A classic Hierarchy-of-Effects model is AIDA.

10. AIDA Model Action Desire Interest Attention Conative = “Do” Affective = “Feel” Cognitive = “Think”

11. Elaboration and Brand Decision Consumers use one of two possible routes to process brand-related information:  Central Route- Consumers pay attention to product information (attributes, benefits, price, etc.).  Peripheral Route- Consumers pay attention to image messages or cues such as music, celebrity, model, or humor.

12. The Elaboration Likelihood Model Central route to persuasion Comprehension Deeper thoughts about product attributes and consequences More elaboration Persuasion Non-product beliefs Attitude toward ad Purchase intention Comprehension Shallow thoughts about nonproduct information Low elaboration Attention Focus on “central” product-related information Higher involvement with product or message Attention Focus on “peripheral” nonproduct information Lower involvement with product message Persuasion Product beliefs Brand attitude Purchase intention Peripheral route to persuasion Exposure to persuasive communication (ad)

13. Routes to Persuasion Central Route Peripheral Route

14. Understanding E.L.M. - Part 1  It is possible for persuasion (e.g., creating favorable brand attitudes) to occur through either route  Marketer must know what route target audience is likely to use when searching for information.

15. Understanding E.L.M. - Part 2  Neither of the routes to persuasion is superior to the other!  They are two different means to reach desired end (favorable brand attitude).

16. Attitude as an Influence on Alternative Evaluation  Attitude toward a brand is comprised of sum of brand attribute beliefs times importance of attribute Multiattribute Model of Attitude Formation: A B = Σ B i x E i A B = Brand Attitude B i = Beliefs about brand on attribute i E i = Importance attached to attribute i

17. How Marcom Can Be Used to Influence Brand Attitude 1.Change beliefs about a particular brand attribute (ex. SNHU)SNHU 2.Change consumers’ perceptions of the importance or value of an attribute (ex. AT&T) AT&T 3.Add a new (positive) attribute to the attitude formation process (ex.- AT&T)AT&T 4.Change perceptions of belief ratings for a competing brand (ex.- Samsung)Samsung