The effect of communication on consumer behaviourDocument Transcript
The Effect of Communication on ConsumerBehaviourBy Bill Faulkner, eHow ContributorPrint this articleAdvertisers dont want you tochange the channel!Marketing firms and departments use communication to target specific groups of consumers andinfluence them into buying a particular product. Sometimes, these firms and departments areunnecessary as word of mouth from consumers creates a buzz and others will purchase goods oruse services based on the recommendation of peers. Beyond word of mouth, companies will useadvertisements and sales people to communicate to target markets and attempt to influence theminto purchasing products.Other People Are ReadingThe Factors Influencing Consumer Buying BehaviourConsumer Perception Theory
1. Word of moutho Word of mouth buzz for a particular product or service is typically organic and doesnot come from a company or business. This happens when a certain demographiclatches onto a brand or product and, in turn, tells their friends and/or family about it.In his book "The Tipping Point," Malcolm Gladwell talks about how Airwalk shoesbecome popular with the skating crowd in the 1990s. The trend started withskateboarders telling other skateboarders about the shoes. The buzz became loud andthe company realized they were onto something with their product. As a result, theywere able to capitalize on the word of mouth communication with their ownadvertising.Advertisingo Advertising is a necessary form of communication for companies looking to promotetheir product or service to the consumer. As stated in the Atlantic, advertising hasbeen around for ages. There are even examples found in tombs and on walls withancient symbols used to promote a merchants wares. This timeless sales techniquewill often rely upon needing to capture the attention of consumers.Once advertisers capture a targeted consumers attention, they will often employpsychology in an attempt to coerce the individual to purchase a particular product.One such way of doing this is to make people want to fit in by showing theproduct or service as being popular with various peer groups. Another techniqueused frequently in advertisements is branding. Branding is useful to advertisers inthe fact that it creates and plays upon consumer loyalty.o Sponsored Links Create a Mobile SiteConvert Your Website to Mobile In Under 2 Minutes. Start Now!www.GinWiz.comE-mailo One effective way to keep consumers updated with regard to new products or servicesis to create a mailing list and send out periodic e-mails. This technique can beespecially useful for promotions, sales or coupons. By including deadlines,companies can attempt to drive up sales by creating a sense of urgency. Adisadvantage to e-mail campaigns, though, is that too much communication canannoy consumers and potentially turn them off to the company.Contracts
o Written communication is used by companies in the form of contracts. Contracts canbe necessary, as they spell out the terms of a particular purchase and establishpenalties for breaking them. In spite of the necessity, contracts can have the effect ofmaking customers skeptical or choose not to purchase a particular product. While thisis not the desired effect of a company, consumers can be taken aback by confusinglanguage or small print. As reported by CNET News, the prepaid cell phone market isgrowing, as consumers are becoming intimidated by contract phone plans.Infomercialso In the Discovery Channels article on infomercials, the process of how this form ofcommunication causes consumers to impulsively purchase goods is explained. Thebasic process is that a company will pay to have an infomercial on television. Thispaid advertisement will begin by illustrating a common "problem" in modern life.Then the "solution," which is the product being sold, will be presented to theaudience. For those at home, there is usually an urging to "call now." The effect ofthis communication is consumers purchasing items they might not usually buy.Sponsored LinksMARKETING COMMUNICATION:There are 5 basic components of communication:1. Sender2. Receiver3. Medium4. Message5. FeedbackIn the communications process, the sender encodes the message using words,pictures, symbolssends it through a selected medium.The receiver decodes the message based on his or her personal characteristics and experience,and responds based on such factors as selective exposure, selective perception, comprehensionand psychological noise.There are 2 types of communications:1. Interpersonal Communications2. Mass Communications
Interpersonal communications occur on a personal level between towor more people and may beverbal or non verbal, formal or informal.Interpersonal communications take place in person,bytelephone,bymail,byemail,on the web etc.,In mass communications, there is no direct contact between source and receiver.Mass communications occur through such impersonal media as television, radio, newspapersand magazines.Feedback is an essential component of all types of communications because it provides thesender with some notion as to whether and how well the message has been received.The credibility of the source, a vital element in message persuasiveness, often is based on thesource’s perceived intentions.Informal sources and neutral or editorial sources are considered to be highly objective and thushighly credible. The credibility of a commercial source is more complex and usually is based ona composite evaluation of its reputation,expertise,and knowledge and that of the medium inwhich it advertises, the retail channel and company spokespersons.Media Selection depends on the product,the audience, and the advertising objectives of thecampaign.Each medium has advantages and shortcomings that must be weighed in the selectionof media for an advertising campaign.Following the emergence of new technologies, many advertisers are now developing morecustomized communications that can reach consumers via media with narrow casting, rather thanbroadcasting.The manner in which a message is presented influences its impact. One sided messages are moreeffective in some situations and with some audiences; two sided messages are more effectivewith others.High involvement products are best advertised through the central route to persuasion, whichencourages active cognitive effort.Marketers can either use objective,factual appeals or emotional appeals. The emotional appealsmost frequently used in advertising fear, humour,sexual appeals etc.,Audience participation is a very effective communications strategy becuase it encouragesinternalization of the advertising message.What are the challenges you are facing in designing and delivering your MarketingCommunications to your current and potential customers?