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U      l   

Lecture Week 9 26”‘ November 2014
Stlril‘ we'll cover this week. ..

Why we need to understand people

How we make decisions and what factors influence them...
It's your job to bother with consumer behaviour

/ 
.1 yo ‘/ 
I
l

Planning is the voice
of the consumer in

the creative ...
At the heart of an effective creative
philosophy is the belief that nothing
is so powerful as an insight into
human nature...
Changing behaviour is the ultimate aim

V‘ J The ultimate aim of in
advertising is to change

consumer behaviour to
someth...
/ ’-I’/77

"’.  htl nee, dvto understand why people do what they do

v . ;<£/ "’ '- A‘ k‘““‘«‘
~ -'1  '1
i , — ’. "-_~r/ -...
Cycling Safety

  
  
 
  

Previous campaigns
 reminding drivers to watch
out for cyclistsweren’t * _ _   _
working,  why...
The audience wouldn't respond to being told they weren't noticing
cyclists because they thought they were — they needed pr...
The aim of studying consumer behaviour

- To understand more about the consumer's L , , ’ 
beliefs 8. attitudes and buying...
What factors influence our behaviour? 

Source:  GCN (2010) Communications and Behaviour Change
WIUER

ENVIRONMENT PERSU MAL

° Demographic

° Knowledge and awareness

v Attitudes — Cognitive Dissonance

~ Habit and ro...
.e_r1:lr‘rre>,  ._w. ~,. ;u.  .j»; ,

category Group

Wealthy
Executives

Wealthy
Achievers

Affluent
Greys

Flourishing
F...
Personal Psychological Factors
Buying choices are influenced by four psychological factors:
SELF 0 Personal growth and fulfillment — morality, 
A0TUAl| SAT|0N creativity,  spontaneity

0 Self esteem,  confidence,  ...
llHE, :l. ! Hill I;  rrl; IsIs

 to I

I Ijl

gr’

 

 

Buying behaviour will vary
according to DMD — relate

to HIP,  LI...
INFORMATIVE THINKER

High importance,  rational decision,  expensive
e. g. New laptop
CREATIVE:  Long copy,  Demonstration...
null:  .: nI" ' an on ; .II, I,I*I, I,III, I:I srsllslsnmslsl , II; :,: :.*r: :y

- AVAILABILITY HEURISTIC:  We go with wh...
LOCAL
ENVIRONMENT

 

 
 
 
 

PERSONAL

~ What are the attitudes,  values and
beliefs of the audience? 

a Is there a gap...
WIDER
ENVIRONMENT

LOCAL
ENVIRONMENT

   

SOCIAL:  INTERPERSONAL

INFLUENCES

0 Other people's values,  attitudes
and bel...
The Decision Making Unit (DMU)

#1’ , 

‘ ' "w,  ei"-'1:--= =7“' "' '7.-': ._‘",  -—T"'? _.,  ” . .:. ‘  . .; .5‘ .  " .  ...
Decision Making Unit Grid — Holiday Example

Self,  friends,  family Travel Agent

Self,  friends,  family,  journalists, ...
Influencing social norms — Behavioural Economics

Social factors are powerful and social norms are deeply entrenched. 
Cha...
ENVIRONMENT

LOCAL
ENVIRONMENT

    
  

SOCIAL
-v Is the behaviour change in line with
or against social norms? 

  o Is ...
LOCAL
ENVIRONMENT

ENVIRONMENTAL

a Before behaviour change can occur
the right facilitating conditions
must be in place i...
TR| OCER— Motivation to act e. g. need,  want,  pressure,  dissatisfaction

J

ACTIVE CONSIDERATION — information search

...
The traditional marketing funnel

Eyeball:  —-O  : - ‘ """"‘ ' ‘I 

__, _.. ... .. . ,.. ..__*, ,._. ... .., ... ... ... "...
1

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(rrr 
on tx I r>r3rL. -ptruv,  .r: r<l
(')A)I: I£-‘KIT’:  To rm: --rwr ? .': «r; «_lr
p...
Consumer Decision Making Process Model

Inrtrrrdnals
irrrolvorl and
decision roles
What is tho
audience
tlrirrlring/ feeli...
1. Identify the behaviour you want to change
What does the audience think/ feel/ do now?  What do you want them to think/ ...
How to get people to do what you want

   
  
   
   
 
  
   
 

ATTRACTIVE

Reward the
behaviour and
make it valuable

 ...
Sorne reading

COM (2010) Communications and Behaviour Change

Gordon (2004) Consumer Decision Making

Heath (1999) Low In...
On how we decide and how we process communications
Choice — Rational decision making —The unconscious
¥9*i7*CiIio; i{c‘e4aird3tiheuroder~n—c*nsumer:   s 
  gr:  7. -‘ '; V 1,;  T.  W i ‘it.  ‘It  7 t i.  ..  
 Wants more cho...
r '
‘; ‘ .  '. 
r ' . ._
A

,  -

, ,.. ... 

X
/5

Emotions constitute an
integrated element of the
seemingly most ration...
Rational versus emotional advertising

Emotional associations NOT USP
Use colour,  music 8: humour

3 at 3 9  " ‘Kg:  “'
I...
tifins (Freud)

   
     
       
       
   

SUB- CONSCIOUS
ACTIVITY

Real subconscious reasons for
purchasing a car;  e...
We process advertising on an almost continuous basis,  with great efficiency,  but at low levels
of involvement

This proc...
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Week 9 lecture consumer behaviour

consumer behaviour

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Week 9 lecture consumer behaviour

  1. 1. U l Lecture Week 9 26”‘ November 2014
  2. 2. Stlril‘ we'll cover this week. .. Why we need to understand people How we make decisions and what factors influence them Who we are — personal characteristics Why we do stuff — motivation How we process information, including ads
  3. 3. It's your job to bother with consumer behaviour / .1 yo ‘/ I l Planning is the voice of the consumer in the creative process Source Merry Baskiri 1. Account Planning Group (2007) limit is Planning?
  4. 4. At the heart of an effective creative philosophy is the belief that nothing is so powerful as an insight into human nature, what compulsions drive a man, what instincts dominate his action, even though his language so often can camouflage what really motivates him
  5. 5. Changing behaviour is the ultimate aim V‘ J The ultimate aim of in advertising is to change consumer behaviour to something more desirable from the advertisers’ perspective Understand audiences’ current behaviours including the underlying reasons for them - - 4 Articulate exactly the desired behaviour Unearth opportunities for influence and conversion points Source: Charlie Snow (2010) Applications of behavioural economics: Break the old habits
  6. 6. / ’-I’/77 "’. htl nee, dvto understand why people do what they do v . ;<£/ "’ '- A‘ k‘““‘«‘ ~ -'1 '1 i , — ’. "-_~r/ - ‘l 37 l . ‘_ ". ~r Understanding all the factors that . _ influence the behaviour you want to g. 1 0 change is an essential starting point. It ' “ 1;‘ ? l“f3ll‘ ti . will enable you to start identifying the V, ‘ _. ’,'; ;/ most effective interventions, and to 3" ; ,1; __§: .~_ establish where communications sit within 4 ; - 1. 1 . -. ~'. __~. - if‘ ' 1 ' -~. 5' . ~.. . » the mix. 1-, /i'_‘_. ._‘~: .h‘Ir-_ / . , ' ‘ P , ‘/ . : / ” lieu-rr. rr. orrhevhoreevrril?7§rv’iert1oirrrilla'lflhv
  7. 7. Cycling Safety Previous campaigns reminding drivers to watch out for cyclistsweren’t * _ _ _ working, why? !?! v’ A J at rrl AMISPERCEPTIUN ‘M -vtfijx gr) lalready watch out for :1’ cyclists, so all this ’ safety advertising is boflocksl _ -, 1 V‘! I 9-- 11 be 4? . " in (2009) Cycling Safefy— 0yc| ists Should Be Seen and Not Hurt
  8. 8. The audience wouldn't respond to being told they weren't noticing cyclists because they thought they were — they needed proof to unsettle their deep seated beliefs and hence behaviour '1 'r. r -"‘[T—"‘
  9. 9. The aim of studying consumer behaviour - To understand more about the consumer's L , , ’ beliefs 8. attitudes and buying patterns 0 To understand why consumers choose one brand over another - To understand how communications or other 1 f': ;~_. _ v- things within our control can or cannot ‘ / , ‘ influence that decision - To understand why advertising and ‘ promotions is perceived differently, by K’ is different people Understand emotion versus rational reasons '1 for purchases .1? . “" rs-sgw gags 1' ‘Qt _ . Q v . __'. .. _. ‘x - . -L‘ . .
  10. 10. What factors influence our behaviour? Source: GCN (2010) Communications and Behaviour Change
  11. 11. WIUER ENVIRONMENT PERSU MAL ° Demographic ° Knowledge and awareness v Attitudes — Cognitive Dissonance ~ Habit and routine — breaking requires an emotional stir up «= Self efficacy, control and agency — extent someone believes they can do it t ~ Mental shortcuts/ lreuristics LUCAL ENVIRUNMENT
  12. 12. .e_r1:lr‘rre>, ._w. ~,. ;u. .j»; , category Group Wealthy Executives Wealthy Achievers Affluent Greys Flourishing Families WI” 01 - Affluent mature professionals, large houses 02 - Affluent working families with mortgages 03 - Villages with wealthy commuters 04 - Well-off managers, larger houses 05 - Older affluent professionals 06 - Farming communities 07 - Old people, detached houses 08 - Mature couples, smaller detached houses 09 - Larger families, prosperous suburbs 10 - Well-off working families with mortgages 11 - Well-off managers, detached houses 12 - Large families & houses in rural areas
  13. 13. Personal Psychological Factors Buying choices are influenced by four psychological factors:
  14. 14. SELF 0 Personal growth and fulfillment — morality, A0TUAl| SAT|0N creativity, spontaneity 0 Self esteem, confidence, achievement, ESTEEM respect from others LOVE 2. BELUNGINE 0 Family, friends, intimacy * Security of body, employment, snrrrv resources including finances, family, health & property PHvsIoLocrcAL 0 Food, water, sex, sleep
  15. 15. llHE, :l. ! Hill I; rrl; IsIs to I I Ijl gr’ Buying behaviour will vary according to DMD — relate to HIP, LIP & FCB Planning Square
  16. 16. INFORMATIVE THINKER High importance, rational decision, expensive e. g. New laptop CREATIVE: Long copy, Demonstration, Information MEDIA: Places with space for this e. g. DM, Personal selling, website, content HABIT FORMATION Low importance, rational decision, inexpensive e. g. Washing powder CREATIVE: Reminder to keep brand top of mind MEDIA: Places by point of purchase e. g. sales promotion, PDS, short length TV or radio AFFECTIVE FEELER High importance, emotional decision, expensive e. g. Perfume, designer clothes CREATIVE: High impact, image/ narrative led MEDIA: Places to bring the brand to life e. g. Experiential, DM, PR, TV, Content, Social media SELF SATISFACTION REACTOR Low importance, emotional decision, inexpensive e. g. Beer CREATIVE: High impact, image led MEDIA: Attention grabbing and image led e. g. Outdoor, Print,
  17. 17. null: .: nI" ' an on ; .II, I,I*I, I,III, I:I srsllslsnmslsl , II; :,: :.*r: :y - AVAILABILITY HEURISTIC: We go with what is easy to recall . « SIMULTATION HEURISTIC: We go with what is easy to imagine - REPRESENTATIVENESS HEURISTIC: We like what has happened before - HVPERBDLIC DISCOUNTINC: We prefer short term over long term gain ' - LOSS AVERSION: We hate to lose '- INERTIA BIAS: We have a natural preference for the status quo 2/ CHOICE ARCHITECTURE: Choices are influenced by the way they are framed Source: Thaler and Sunstein (2008) Nudge
  18. 18. LOCAL ENVIRONMENT PERSONAL ~ What are the attitudes, values and beliefs of the audience? a Is there a gap between attitudes and behaviour? a Do they have the knowledge to undertake th behaviour? » Are people confident about undertaking the behaviour? I , ° Are they motivated by the outcome? What emotions are involved? I I» What biases might be in place?
  19. 19. WIDER ENVIRONMENT LOCAL ENVIRONMENT SOCIAL: INTERPERSONAL INFLUENCES 0 Other people's values, attitudes and beliefs ~ Social norms — group rules of acceptable behaviour , a From family, membership groups, reference groups a Based on role and status in society — how you want to be seen by
  20. 20. The Decision Making Unit (DMU) #1’ , ‘ ' "w, ei"-'1:--= =7“' "' '7.-': ._‘", -—T"'? _., ” . .:. ‘ . .; .5‘ . " . ;. f'; ‘~'e 3?‘; :_ g. __ _ _ ‘,3 , . _, , , . . ‘ 3. ' _, :—. I H , M : I I ; I. K . . "I . I. ., T I. ' , , ‘ . ’ ". .«-. ,“. --2-‘ 2,; ‘I , , —. n. 1- - —_ _ , , : . I I ’ '3 E7 M an i"’rZ: ‘ I " It I'LL HAVE _, WHAT SHE'S
  21. 21. Decision Making Unit Grid — Holiday Example Self, friends, family Travel Agent Self, friends, family, journalists, Travel Agent, resorts, reviewers airlines, review sites, internet, Self, partner Self, partner Travel Agent, internet Self, partner, family Source: Percy& Elliott (2005) Strategic Advertising Management
  22. 22. Influencing social norms — Behavioural Economics Social factors are powerful and social norms are deeply entrenched. Change in social norms is often slow to happen. Source: GCN (2010) Communications and Behaviour Change
  23. 23. ENVIRONMENT LOCAL ENVIRONMENT SOCIAL -v Is the behaviour change in line with or against social norms? o Is peer pressure likely to be an influence? 0 Who will influence the audience and" how strong will their influence be? a Who is the Decision Making Unit?
  24. 24. LOCAL ENVIRONMENT ENVIRONMENTAL a Before behaviour change can occur the right facilitating conditions must be in place in th individuaI’s local and wider/ macro environment ~ Culture ° Technology o Economy * Institutions ° National and International e Support a Opportunity
  25. 25. TR| OCER— Motivation to act e. g. need, want, pressure, dissatisfaction J ACTIVE CONSIDERATION — information search J EVALUATION 8: SHORT LISTING — positive, negative 8: neutral J PUCHASE CHOICE — company, brand, outlet, specification, price J POST PURCHASE EVALUATION — use experience, cognitive dissonance
  26. 26. The traditional marketing funnel Eyeball: —-O : - ‘ """"‘ ' ‘I __, _.. ... .. . ,.. ..__*, ,._. ... .., ... ... ... " ; .. ... ... ., -, ,.. .. _- . -, The tunnel concept fails to capture all the touch points and key buying factors resulting from the explosion of product choices and digital channels, coupled with the emergence of an increasingly discerning, well-informed consumer.
  27. 27. 1 Tin: <: o'f; .:rrr: L-' Corr; (rrr on tx I r>r3rL. -ptruv, .r: r<l (')A)I: I£-‘KIT’: To rm: --rwr ? .': «r; «_lr pc : :r5 ' I. "--“.1 -r- : - -‘Fl-rv rn‘‘. «r: ., A more sophisticated approach is required to help marketers navigate this environment, which is less linear and more complicated than the funnel suggests. We call this approach the consumer decision journey. r: WI‘: arid 0.’ srrhtrj/ mt 3. : llr: -.', ' c-'. ':r'rr;1Z: -. ‘. '.I1:1'. Active evaluation Loyalty loop Postpurchasc experience 4 After pLliCI‘. :r; - xi : : product or : ‘r". ":r’. :', '. 'w~: - (.0I‘-‘3:lI'II{'l Im ‘:15 cx| )(: IZl. ':Yr0n: . based on f‘. II; )P'| <‘I)r’. L’ to rnfornr rrre vex! (: .~, :.r: ~r0rr jur. ‘rn0‘. '. . "'lrr. -lrI' -. Irr-lrV-- . - 3 UIlrrrr.1'. r:: '-, ‘ the cc~wstrwv; -' :1:-3»: I; :4 Imam! at rm’- rrxrrrrenl of [)'r. :'LIld. t‘
  28. 28. Consumer Decision Making Process Model Inrtrrrdnals irrrolvorl and decision roles What is tho audience tlrirrlring/ feeling/ do in: at this tirno? What are the major influencing factors? Where stage is likely to occur Timing of stage Active Consideration Eraloatiorr anrl Prrrrzlraseclroice Post Purclraso Slrrrrtlistirr; Evaluation Source: Percy8: Elliott (2005) Strategic Advertising Management
  29. 29. 1. Identify the behaviour you want to change What does the audience think/ feel/ do now? What do you want them to think/ feel do? 2. Identify the influences on behaviour Personal, social and environmental, who is involved in the decision (DMU)? 3. Map Decision Making Process and plot influences against it Consumer Decision Making Process Model 4. Identify interventions Whre communications could influence behaviour 5. Communications Strategy Plot the communications tactics that would best work at thes times
  30. 30. How to get people to do what you want ATTRACTIVE Reward the behaviour and make it valuable SOCIAL Use others and social norms to influence TIMELV Get people at the right time Source Government Communications Service (2014) Guide to Communications and Behaviour Change
  31. 31. Sorne reading COM (2010) Communications and Behaviour Change Gordon (2004) Consumer Decision Making Heath (1999) Low Involvement Processing Okin (2009) Cycling Safety — Cyclists Should Be Seen and Hot Hurt Snow (2010) Applications of Behavioural Economics Thaler and Sunstein (2008) Nudge Wright (2006) Consumer Behaviour
  32. 32. On how we decide and how we process communications Choice — Rational decision making —The unconscious
  33. 33. ¥9*i7*CiIio; i{c‘e4aird3tiheuroder~n—c*nsumer: s gr: 7. -‘ '; V 1,; T. W i ‘it. ‘It 7 t i. .. Wants more choice = ;—. ¥l§: .‘ Ovenvhelmed by choice __. ____. . . j.. ..: ..; ... ... ..: ._. j_. ... . - -- -. _-. A More affluent than ever -. .-13? Feels poorer than ever r — I j. .. ‘ I I : '71‘, - '. ~ - . . . ‘r - c can .3 _ ~ -« — ‘V _ ~ _ .3. . . — - K * - -x-. -. -1.‘--, -1. . . _ _ . ‘ _ . ' . — . . . . , .». ._ , .‘ , . . , V, _ _ , . , __/ _. - . ‘.g . -.. .g. ._-. ,_ -, ‘ ‘ _ ' -‘: ... - ' ‘-_ ‘H -v - . WW W 3 (. _)‘’‘. -I. _. _.r_ _. __. .- :1 ~ . ,~. _;-. _ V . V. ’ _ v_-__CompIex emotional reasonsfor Simplistic, irrational reasons I E- Q Slllg 1.7"-_: ‘~. ": 3 '>, .«-u- . 4-; ; purchasing for purcha _ I v ¥ 4 C ) 4.‘ "" 7 I . ,- r-'' r 1'. . _, __. in . r. _ More information available *- ‘If I Less '"""““‘“. °" "messed . r _. _I_; (consciously) _ , .,~. .. 1-, -: ‘: ~; , . '. u . I j I —. sv: ;:: ;;_. .s: :{: :a: e (2004TParadoxr£ChoiceAND, .Ariely(2000FPredic1ahlyIrnatinna:
  34. 34. r ' ‘; ‘ . '. r ' . ._ A , - , ,.. ... X /5 Emotions constitute an integrated element of the seemingly most rational decision making. Whenever thinking conflicts with emotions emotions win.
  35. 35. Rational versus emotional advertising Emotional associations NOT USP Use colour, music 8: humour 3 at 3 9 " ‘Kg: “' I '5 : 5" ’ ‘ .2‘ '4 . 2'1, 3”’ iv 1‘! , ', USP+Attention and S Q. ‘ , ., g memorability g ~. ..: (. Use info, repetition and shout
  36. 36. tifins (Freud) SUB- CONSCIOUS ACTIVITY Real subconscious reasons for purchasing a car; emotional feelings of inadequacy because of unhappy childhood; prestige car might compensate by raising feelings of self-worth CONSCIOUS ACTIVITY r Articulated reasons for purchasing a car e. g. rational, as a means of transport, large enough for the family
  37. 37. We process advertising on an almost continuous basis, with great efficiency, but at low levels of involvement This processing takes place passively and instinctively, predominantly using the right brain Because the right brain is poor at analysis, it collects data as complete sets of associations, and transfers these directly into long-terwmory. Associations form brands in brains. When we make a purchase, these associations exert a powerful influence on the decision about which brand to choose, even if we never 'think' about them or analyse their meaning. I The type of processing will vary dependent on the Decision Making Difficulty and level of Involvement needed to make the purchase

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