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Advertising Management Lecture 4: Perspectives on Consumer Behavior
Consumer Behavior   <ul><li>How people think about, buy, and use products as a response to MC messages </li></ul>
Consumer Response <ul><li>Prospects   (t hose who have not bought the brand but who might be interested in it)   vs. Curre...
All Consumers Are Human  Affected By: Sociocultural Factors Social Class Reference Groups
Factors that Affect Decision-Making <ul><li>Socio-cultural factors </li></ul><ul><ul><li>Culture: group values based on tr...
Factors that Affect Decision-Making (Social class) Poor, unemployed Lower The “working poor”, who perform unskilled labor ...
Reference groups <ul><li>Associations and organizations with which people identify or to which they belong and which influ...
Reference Group Categories Counterculture, gangs, antisocial people Disassociative  Famous Entertainers, athletes, politic...
Factors that Affect Decision-Making <ul><li>Personal Factors </li></ul><ul><ul><li>Needs and wants: biological and psychol...
Maslow’s Hierarchy of Needs Marketing & IMC Implications Needs Survival necessities, utilities, medicines, basic food prod...
How Brand Decision Makers Respond to MC Messages <ul><li>Hierarchy of Effects models: descriptions of a series of stages o...
How Brand Decision Makers Respond to MC Messages… Cont’d <ul><li>Think/Feel/Do Models </li></ul><ul><ul><li>Levels of invo...
How Brand Decision Makers Respond to MC Messages… Cont’d <ul><li>Think/Feel/Do Models </li></ul><ul><ul><li>Relevance- the...
Think/Feel/Do Response Wheel <ul><li>THINK: </li></ul><ul><li>Problem recognition </li></ul><ul><li>info search </li></ul>...
Elaboration Likelihood Model <ul><li>Persuasion model based on involvement </li></ul><ul><li>Elaboration: degree to which ...
Elaboration Likelihood Model Peripheral route process is based on such message factors as imagery, emotions, associations,...
How Brand Decision Making Works Problems And Opportunities Post- Purchase Evaluation and learning Cognitive Path (central ...
How Brand Decision Making Works...  Cont’d <ul><li>Step 1: Recognizing a Problem or an Opportunity </li></ul><ul><li>Step ...
How Brand Decision Making Works...  Cont’d <ul><li>Step 2: Evaluating Brand Alternatives </li></ul><ul><ul><li>Two levels ...
How Brand Decision Making Works...  Cont’d <ul><li>Step 3: Deciding what action to take </li></ul>
Three paths to a brand decision B2B supplies, routine purchases, repeat purchases leading to brand loyalty Do / think /fee...
How Brand Decision Making Works...  Cont’d <ul><li>Step 4: Evaluating the Purchase decision or other action </li></ul><ul>...
How MC Messages Influence Consumer Decisions <ul><li>Persuasion-the act of creating changes in attitudes and behaviors. </...
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Adman Lecture 4

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Perspectives on Consumer Behavior

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Adman Lecture 4

  1. 1. Advertising Management Lecture 4: Perspectives on Consumer Behavior
  2. 2. Consumer Behavior <ul><li>How people think about, buy, and use products as a response to MC messages </li></ul>
  3. 3. Consumer Response <ul><li>Prospects (t hose who have not bought the brand but who might be interested in it) vs. Current Customers (t hose who have purchased the brand at least once within a designated period. ) </li></ul><ul><li>Consumers (b uy for their own personal or household use) vs. Business Buyers (b uy on behalf of their organization) </li></ul>
  4. 4. All Consumers Are Human Affected By: Sociocultural Factors Social Class Reference Groups
  5. 5. Factors that Affect Decision-Making <ul><li>Socio-cultural factors </li></ul><ul><ul><li>Culture: group values based on traditions and distinctive history </li></ul></ul><ul><ul><li>Society: a group of people who live together and organize their lives as a community </li></ul></ul><ul><ul><li>Social class: a ranking of people in a society by factors such as family history, occupation, education and income. </li></ul></ul>
  6. 6. Factors that Affect Decision-Making (Social class) Poor, unemployed Lower The “working poor”, who perform unskilled labor and menial work for minimal wages Upper lower Lower-middle class or blue-collar workers who earn an average pay Working class Professionals, small-business owners, corporate managers with comfortable incomes Middle Professionals & businesspeople who have achieved financial success Upper (2% of pop) The highest class, “old rich”, well-known families Upper, upper (1% of pop)
  7. 7. Reference groups <ul><li>Associations and organizations with which people identify or to which they belong and which influence their attitudes and behaviors. </li></ul>
  8. 8. Reference Group Categories Counterculture, gangs, antisocial people Disassociative Famous Entertainers, athletes, politicians Aspirational Opinion leaders, consultant, leading professionals Experts Clubs, churches, schools Membership Family, friends, co-workers Personal
  9. 9. Factors that Affect Decision-Making <ul><li>Personal Factors </li></ul><ul><ul><li>Needs and wants: biological and psychological motivations that drive actions. </li></ul></ul><ul><ul><li>Attitudes, Opinions, Beliefs </li></ul></ul><ul><ul><ul><li>Attitude: general disposition or orientation toward objects, people and ideas usually accompanied by negative or positive judgments </li></ul></ul></ul><ul><ul><ul><li>Opinion: a specific judgment that is emotionally neutral </li></ul></ul></ul><ul><ul><ul><li>Belief: a thought or idea based on knowledge </li></ul></ul></ul>
  10. 10. Maslow’s Hierarchy of Needs Marketing & IMC Implications Needs Survival necessities, utilities, medicines, basic food products Physiological: water, sleep, food, shelter Insurance, alarm systems, cavity protection, retirement, investments Safety: security, shelter, protection, order, discipline Lifestyle products, clothing, grooming aids, restaurants, and clubs Belongingness: love, friendship, acceptance Status appeal of cars, furniture, upscale electronics, country clubs, liquor, first class Esteem: prestige, status, accomplishment, respect, recognition Promote the enriching experience of travel, education, hobbies Self-actualization: self-fulfillment, creative expression
  11. 11. How Brand Decision Makers Respond to MC Messages <ul><li>Hierarchy of Effects models: descriptions of a series of stages of response that brand decision makers move through </li></ul><ul><ul><li>AIDA sequence (Attention, Interest, Desire, Action) </li></ul></ul>
  12. 12. How Brand Decision Makers Respond to MC Messages… Cont’d <ul><li>Think/Feel/Do Models </li></ul><ul><ul><li>Levels of involvement </li></ul></ul><ul><ul><ul><li>Low-involvement products-products that are relatively cheap and bought frequently without much consideration and are perceived as low risk. </li></ul></ul></ul><ul><ul><ul><li>High-involvement products-products for which people perceive differences among brands and are willing to invest pre-purchase decision-making energy. </li></ul></ul></ul>
  13. 13. How Brand Decision Makers Respond to MC Messages… Cont’d <ul><li>Think/Feel/Do Models </li></ul><ul><ul><li>Relevance- the extent to which a product or its message is pertinent and connects with a customer’s personal interests </li></ul></ul><ul><ul><li>Risks </li></ul></ul><ul><ul><ul><li>Financial </li></ul></ul></ul><ul><ul><ul><li>Performance </li></ul></ul></ul><ul><ul><ul><li>Physical </li></ul></ul></ul><ul><ul><ul><li>Psychological </li></ul></ul></ul><ul><ul><ul><li>Social </li></ul></ul></ul>
  14. 14. Think/Feel/Do Response Wheel <ul><li>THINK: </li></ul><ul><li>Problem recognition </li></ul><ul><li>info search </li></ul><ul><li>evaluation </li></ul><ul><li>FEEL: </li></ul><ul><li>Attitudes </li></ul><ul><li>Liking </li></ul><ul><li>Preferences </li></ul><ul><li>Conviction </li></ul><ul><li>Satisfaction </li></ul><ul><li>DO: </li></ul><ul><li>Try </li></ul><ul><li>Buy </li></ul><ul><li>Other action response </li></ul><ul><li>Repurchase </li></ul>BRAND DECISION PROCESS THINK FEEL DO
  15. 15. Elaboration Likelihood Model <ul><li>Persuasion model based on involvement </li></ul><ul><li>Elaboration: degree to which a customer thinks about a message and relate the information to their own lives as they make purchase decisions. </li></ul>
  16. 16. Elaboration Likelihood Model Peripheral route process is based on such message factors as imagery, emotions, associations, celebrity spokespeople & music which creates interest in a message even if there is little interest in the product itself. Peripheral Route Central Route BRAND DECISION High involvement: cognitive analysis of brand features and benefits Low involvement: Emotional analysis of situation & feelings
  17. 17. How Brand Decision Making Works Problems And Opportunities Post- Purchase Evaluation and learning Cognitive Path (central processing) Emotional Path (peripheral processing) Habit/Repeat Path Search for Information Evaluate Choices Evaluate feelings and experiences Habit and loyalty Purchase or take some other action Step 1 Step 2 Evaluation of Brand Alternatives Step 3 Step 4
  18. 18. How Brand Decision Making Works... Cont’d <ul><li>Step 1: Recognizing a Problem or an Opportunity </li></ul><ul><li>Step 2: Evaluating Brand Alternatives </li></ul><ul><ul><li>Awareness-getting a message past the senses-the point of initial exposure-and into consciousness, </li></ul></ul><ul><ul><li>Brand knowledge-understanding of a brand and its benefits. </li></ul></ul>
  19. 19. How Brand Decision Making Works... Cont’d <ul><li>Step 2: Evaluating Brand Alternatives </li></ul><ul><ul><li>Two levels of brand awareness </li></ul></ul><ul><ul><ul><li>Recognition: identifying something and remembering that you saw or heard it earlier </li></ul></ul></ul><ul><ul><ul><li>Recall: higher level of awareness, bringing something back from memory </li></ul></ul></ul><ul><ul><li>Evoked sets: a group of brands that comes to mind when a person thinks of a product category because the person has judged these brands to be acceptable. (Ex: Snacks: Indirect competition (nuts, cookies, chips, fruit, popcorn, candy), direct (nuts: almond, cashews, walnuts, peanuts) </li></ul></ul>
  20. 20. How Brand Decision Making Works... Cont’d <ul><li>Step 3: Deciding what action to take </li></ul>
  21. 21. Three paths to a brand decision B2B supplies, routine purchases, repeat purchases leading to brand loyalty Do / think /feel Habit/repeat processing Snacks, beverages, cigarettes, small household items / Restaurants, sporting events, trade shows, new products where sampling & demo are impt. Do / feel / think and Feel / do / think Experiential processing; impulse, experiences Car, major appliances, high-involvement and new products Think / feel / do Cognitive processing Products Route Type of decision making
  22. 22. How Brand Decision Making Works... Cont’d <ul><li>Step 4: Evaluating the Purchase decision or other action </li></ul><ul><ul><li>Learning-a change in what a person knows that comes from exposure to new information or experiences. </li></ul></ul><ul><ul><li>Cognitive learning theory-a view of learning as a mental process involving thinking, reasoning, and understanding. </li></ul></ul><ul><ul><li>Conditioned learning theory-a view of learning as a trial-and-error process. </li></ul></ul>
  23. 23. How MC Messages Influence Consumer Decisions <ul><li>Persuasion-the act of creating changes in attitudes and behaviors. </li></ul><ul><ul><li>Attitude formation & attitude change </li></ul></ul><ul><ul><ul><li>Direction: whether the feeling is positive or negative </li></ul></ul></ul><ul><ul><ul><li>Degree of conviction: how sure customers are about their attitudes, how strong their feelings are </li></ul></ul></ul><ul><ul><li>Brand likability </li></ul></ul><ul><ul><li>Credibility and trust </li></ul></ul><ul><ul><li>Believable arguments and reasons </li></ul></ul>

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