1. How does psychology and behavior impact promotions?
Consumer Behavior
How does psychology and behavior impact promotions?

2. The Communication Process
Source
Communication objective
Message
Message channel
Target Audience
Communication Outcome
Feedback
Noise

3. Communication Process in Advertising and Promotion
Source – advertising (retailer, manufacturer); PR (newspaper reporter, competition, manufacturer, retailer)
Communication Objectives (awareness, influence behavior, recall)
Message (via advertisements, POP display)

4. Communication Process in Advertising and Promotion
Message Channels – (media, salesperson)
Communication Outcome – Brand Awareness, Attitude change, brand associations, trial
Receiver – Target Audience
NOISE – interferes and interrupts the communications process

5. Who Are Consumers? People who buy products People who use products
Example: Mom buys the cereal but the kids consume and influence decision

6. Major Influences on Consumers
External Influences
Culture
Social Class
Reference Groups
Family
Personal Influences
Age
Sex
Family Status
Occupation
Psychological Influences
Attitudes
Perception
Needs

7. Culture
Complex of tangible items such as art, literature, clothing, music and intangibles such as law, values, customs that define a group of people and their way of life.

8. Social Class Position that you and you family occupy within society
Determined by:
income
occupation
wealth
family prestige
value of home

9. Reference Groups
Collection of people that you use as a guide for behavior in specific situations.
3 Functions
provide information
means of comparison
furnish guidance

10. Family
2 or more people living in a house related by blood, marriage, or adoption
Provides economic, financial and emotional support
Determines Lifestyle

11. Personal Influences Age Gender Family Status Education Occupation
Income
Race and Ethnicity

12. Perception
The process by which an individual receives, selects, organizes and interprets information to create a meaningful picture of the world.
Individualized process where information is filtered and screened for interpretation

13. Selective Exposure
Consumers choose whether or not to make themselves available to information.
Example: in the Golden Age of TV networks ads could reach 70% of audience

14. Selective Attention
Consumer chooses to focus attention on certain stimuli while excluding others.
Example: average consumer exposed to 3,000 – 20,000 promotional messages a day

15. Selective Comprehension
Consumers tend to interpret information in a manner that will support their own, attitudes, beliefs, motives, and experiences.

16. Selective Retention Final screening process.
Consumers do not remember all that they see, hear, or read even after attending and comprehending it.

17. Psychological Influences
Elaboration Likelihood Model
Attitudes
Behavioral Intentions
Involvement
Needs – Maslow’s Hierarchy of Needs

18. Attitudes
learned predisposition to think in a certain way about a person, product, service or idea
based on:
personal factors -social class
cultural factors -race
educational factors
familial roots
religious factors

19. Elaboration Likelihood Model
model that allows marketers to predict routes to persuasion
route to persuasion based on two moderating variables:
motivation (involvement)
ability to comprehend
central and peripheral routes are the ends of an elaboration continuum

20. ELM Elaboration Involvement
amount of issue relevant thinking done by the consumer
Involvement
personal motivation to “think”
reflects risk and how close the issue ties to the ego

21. Peripheral Route Affective Route - Zajonc
reflects lower levels of involvement or lack of ability to process
outcome is attitude toward the ad
attitudes less resistant or persistent than those formed centrally
relies on cues such as sex, celebrities, music color, visuals to persuade

22. Peripheral Route Most effective forms of advertising will be: tv radio
celebrity endorsers
mood oriented print ads
sex

23. Hedonic Needs Attend to messages that make us feel good.
Hedonic Consumption
stimulus cues consumption of memories
I.e., perfume and an old girlfriend

24. Central Route high levels of involvement
higher levels of ability to process
may reflect a natural desire to be cognitive
cognitive route to persuasion
outcome is an attitude toward the brand
attitudes formed centrally are more resistant and persistent

25. Central Route reflected by the Fishbein Model of Attitude Formation
best forms of advertising
print
cognitive
product information provided

26. Fishbein Model Attitude Changes
Change a belief
Very difficult to change an initial negative impression
Change the Importance of the Evaluative Criteria
Add a new BiEi Combination
BEST! Improves your position and hurts everyone else!

27. Multi-Stage Memory Theory
Sensory Memory
Physical Property Analysis
Short Term Memory
Assign some meaning to the new input
Combines with long-term stores
Long-term Memory
Unlimited memory store

28. Techniques to Enhance Memorability
Repetition
Frequency
Jingles
Slogans
Taglines
Logos

29. Maslow’s Hierarchy of Needs
Motivation - internal force that stimulates the person to act in a certain manner.
Needs- the basis of motivated behavior

30. Maslow’s Hierarchy Self-Actualization - Fulfillment
Ego Needs - success, achievement
Social Needs - affection, friendship
Safety and Security Needs - protection, order, stabilization
Physiological Needs - food, water, shelter, sex