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Communication & Consumer behavior
Class objectivesOutline the consumer perception process & explain why “perception is reality”Explain the human communication process and how it impacts advertisingDiscuss various influenceson consumer behaviorDiscuss consumers’ motivations Describe how a consumer’s level of involvement with a product influences themOutline the steps of the consumer purchase decision process
The Human Communication ProcessSourceEncodingMessageChannel Noise DecodingReceiverFeedback
IN LIFE…Source:Your friend AnnMessage:Coffee InvitationChannel:Text messageReceiver:YouYouKate & AnnCant. Studying. :(Im w K8 @ *$.  Join us?
In Advertising…Source:The sponsor, EvianMessage:The adChannel:The medium, printReceiver:The consumerEvian ad uses a symbol to encode its message
BROKEN CODESometimes the receiver (consumer) doesn’t decode the message (ad) the way the source (advertiser) intended.Example: Groupon ad   http://www.youtube.com/watch?v=87RrhRyD-Pc
Crack the code… Can you accurately decode the advertising slogans in these 2 exercises?
Feedback in advertisingDirecTV offers interactive advertising that allows consumers to give feedback, receive information, or redeem offers.
noiseAdvertisers compete with thousands of others for their message to be heard by consumers, i.e. noise.
Consumer behaviorConsumer behavior:  the mental and emotional processes and the physical activities of people who purchase and use goods and services to satisfy particular needs and wants.What makes her like this dress?
personal processesPerception: the personalized way we sense, interpret and comprehend stimuli.PERSONAL PROCESSESPerceptionLearning & PersuasionMotivationLearning: a permanent change in thought process or behavior that occurs as a result of reinforced experience.Persuasion: a change in belief, attitude or behavioral intention caused by promotional communication (e.g. ads).Motivation: the underlying forces (motives) that contribute to our actions
Example: COOKIESPerception: I smell chocolate chip cookies, and they smell delicious.Learning: I follow the recipe on the back of the bag and make cookies that are just as delicious.Persuasion: I believe that Hershey’s makes the best chocolate chips, so they’re the only ones I use when I bake.Motivation: By sharing cookies with my friends, they will see that I like them.
PerceptionPhysiological Screens (Sensory)All these layers make it hard for advertisers to achieve consumer perception.Psychological Screens (Emotional)Physical Data(Stimuli)Cognition(Awareness)Mental Files (Memory)Ad/commercial
Promotion
News item
Product/store
Price tag
Conversation
Sight
Hearing
Touch
Taste
Smell
Personality
Self-concept
Attitudes
Beliefs
Habits

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Mcom 341-9 Communication

  • 2. Class objectivesOutline the consumer perception process & explain why “perception is reality”Explain the human communication process and how it impacts advertisingDiscuss various influenceson consumer behaviorDiscuss consumers’ motivations Describe how a consumer’s level of involvement with a product influences themOutline the steps of the consumer purchase decision process
  • 3. The Human Communication ProcessSourceEncodingMessageChannel Noise DecodingReceiverFeedback
  • 4. IN LIFE…Source:Your friend AnnMessage:Coffee InvitationChannel:Text messageReceiver:YouYouKate & AnnCant. Studying. :(Im w K8 @ *$. Join us?
  • 5. In Advertising…Source:The sponsor, EvianMessage:The adChannel:The medium, printReceiver:The consumerEvian ad uses a symbol to encode its message
  • 6. BROKEN CODESometimes the receiver (consumer) doesn’t decode the message (ad) the way the source (advertiser) intended.Example: Groupon ad http://www.youtube.com/watch?v=87RrhRyD-Pc
  • 7. Crack the code… Can you accurately decode the advertising slogans in these 2 exercises?
  • 8. Feedback in advertisingDirecTV offers interactive advertising that allows consumers to give feedback, receive information, or redeem offers.
  • 9. noiseAdvertisers compete with thousands of others for their message to be heard by consumers, i.e. noise.
  • 10. Consumer behaviorConsumer behavior: the mental and emotional processes and the physical activities of people who purchase and use goods and services to satisfy particular needs and wants.What makes her like this dress?
  • 11. personal processesPerception: the personalized way we sense, interpret and comprehend stimuli.PERSONAL PROCESSESPerceptionLearning & PersuasionMotivationLearning: a permanent change in thought process or behavior that occurs as a result of reinforced experience.Persuasion: a change in belief, attitude or behavioral intention caused by promotional communication (e.g. ads).Motivation: the underlying forces (motives) that contribute to our actions
  • 12. Example: COOKIESPerception: I smell chocolate chip cookies, and they smell delicious.Learning: I follow the recipe on the back of the bag and make cookies that are just as delicious.Persuasion: I believe that Hershey’s makes the best chocolate chips, so they’re the only ones I use when I bake.Motivation: By sharing cookies with my friends, they will see that I like them.
  • 13. PerceptionPhysiological Screens (Sensory)All these layers make it hard for advertisers to achieve consumer perception.Psychological Screens (Emotional)Physical Data(Stimuli)Cognition(Awareness)Mental Files (Memory)Ad/commercial
  • 19. Sight
  • 21. Touch
  • 22. Taste
  • 23. Smell
  • 30. Needs
  • 32. Example: HIGHWAY BILLBOARDPhoto: frankwbaker.comPsychological ScreenI’m not 21 yet
  • 33. I don’t drink alcohol
  • 34. Bothered by portrayal of womanPhysiological ScreenBig truck in front of my car blocks ad from view
  • 35. I’m walking, ad is too high for me to seeStimulusBillboardadSELECTIVE PERCEPTION
  • 36. Example: online adStimulusOnline display ad appears on fave web sitePhysiological ScreenI notice the ad while reading a storyPsychological ScreenThe ad reinforces my habit of shopping for clothes at LOFT
  • 37. The ad appeals to my self-concept (fun, feminine)CognitionThe ad makes it through my screens and achieves awarenessMental FilesI want to shop for dresses and decide to visit LOFT this weekPhoto: visualeditors.com
  • 38. LOGO EXERCISEHow many of these company logos made it through our filters? http://www.sporcle.com/games/corplogos.php
  • 39. Learning and PersuasionHigh Engagement: I’m HungryExample: Pizza Hut product placement On FX TV series “The League”StimulusNeed/WantDrive to RespondResponse ReinforcedSatisfactionDissatisfactionPhoto:  xiaoxiazhuang.com
  • 40. Learning & persuasionLow Engagement: I Don’t Want/Need ShoesThis ad for Keds aims to create a positive attitude so consumers will remember the brand when the need/want is stimulated.
  • 41. Results of LearningBrand LoyaltyHabitBrand InterestExample: dishwashers in Japan“My Danby dishwasher has become an essential part of my cleaning routine. When I need a new dishwasher, I’ll buy a Danby.” Danby = cheap, high quality.Japanese culture doesn’t embrace labor savings or space of traditional dishwashers.Brands focused on hygiene, small machines instead.Use dishwasher after each dinner.AttitudeDanby countertop dishwasherPhoto:  appliancist.com
  • 42. Needs are basic & often instinctiveWants are learned during lifetimeMaslow’s hierarchy of needsMotivationMotivation: underlying forces driving decisionsInsert ex. 5-5, p. 154Maslow’s Hierarchy tablePosition = 0.35” horiz, 3.5” verticalSize = 8.2” WIDEResolution = 300 dpi
  • 43. MotivationPorsche ad hints at multiple levels of needs: Physiological
  • 45. Self-actualizationMotivationRossiter & Percy’s fundamental motivesNegative Motives: problem removal or avoidancePositive Motives: benefit, bonus or reward
  • 46. CONSUMER InfluencesInterpersonalFamilyCultureSociety:Reference Groups & Opinion LeadersWhat brands, products does your family buy?What are the cultural preferences for the product?The groups whose approval matters: what do they think?
  • 47. Decision processYour friend Chris’ mp3 player just broke.He’ll go through these decision steps while considering a new purchase:Need: a new mp3 player.Determine alternatives.Assess and choose.Buy mp3 player at store X.Determine satisfaction.Problem recognition.Information search.Evaluation and selection.Store choice and purchase.Postpurchase behavior.
  • 48. Decision processEvoked set = valid product alternatives.
  • 49. Decision processEvaluative criteria = the standards a consumer uses to judge the features & benefits of alternative products.
  • 50. Decision processCognitive dissonance = consumer’s justification of his/her behavior by reducing the dissonance (inconsistency) between their cognitions (perceptions, beliefs) and reality.
  • 51. Decision processPostpurchase evaluation= the phase where a consumer evaluates whether an exchange was satisfying or not and reinforces or rejects the decision, updates mental files.