Marketing communication is at a turning point in which new digital channels and services are continuously being introduced to consumers. This is a summary of the study, how agreeable the currently available channels are to consumers and how their preferences have changed during the last few years are examined.
Consumer preferences for marketing communication channels
1. Consumer preferences for marketing
communication channels
Kari Elkelä, Itella BI
21.3.2012
FOR INTERNAL USE ONLY – VAIN SISÄISEEN KÄYTTÖÖN
2. Consumer preferences for marketing
communication channels
1.
2.
3.
4.
Starting points
Channel preferences and their change
Explanatory models for channel preferences
Controllability as the best explanatory variable for
preferences
5. Summary and conclusions
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Kari Elkelä - Itella BI 2012-03-21
4. Marketing communication in breakage
• The development of the technology introduces all the time new digital
channels and services
• When the alternatives increase, also consumer's desire to make
decisions on the use of channels will increase
• The information about the consumers' channel preferences is more
important than before to the companies
• Such information and research results about new channels are
generally presented in the media, the comparability of which it is
difficult to check
=>
• A comparative angle of view is needed about attitudes to old and new
marketing communication channels, to their changes, and to factors
which influence on the choices
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Kari Elkelä - Itella BI 2012-03-21
5. Research questions
1. How agreeable or undesirable are the different marketing
communication channels to the consumers and how have these
preferences changed during the last few years?
2. Is it possible to build, and how, a general explanation model for
consumer preferences for marketing communication channels, and to
estimate it?
Data
General view and change
• June 2010, 1180 respondents, compared with December 2006, 1303
respondents
Explanatory model for preferences
• October 2010, vastaajia 1397 respondents
• All data were collected in GallupKanava and are representative samples of
over 15-year-old Finns
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Kari Elkelä - Itella BI 2012-03-21
6. Classifications of marketing
communication channels
Marketing communication Phase of channel life
channels
cycle
Catalog or leaflet
Newspaper
Magazine
Internet search services
Unaddressed letter
Radio
Television
Internetin newspages
Social media
Addressed letter
Phone call
Text message
Email
•
Old paper
Old paper
Old paper
New digital
Old paper
Traditional electronic
Traditional electronic
New digital
New digital
Old paper
Traditional electronic
New digital
New digital
Reception
mode
Use mode
Information
search
channel
Anonymous
Reception
channel
Personal
It is easier to compare a marketing communication channels, if the
channels are classified according to the phase of their life cycle, the
typical reception mode of messages, and the main use mode of channels
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Kari Elkelä - Itella BI 2012-03-21
8. Marketing communication channel preferences in Finland, 2006 and 2010
Share of preferred (top3) channels, %
Catalog or leaf let
49
Newspaper
Internet
53
31
24
30
Addressed letter
44
29
30
TV
Email
Outdoor ad
Magazine
16
19
20
19
Unaddressed letter
4
Radio
3
Text message
23
24
26
23
5
5
1
1
1
1
Phone call
Door-to-door selling
0
Itella Corp. KE 2010-08-06
64
55
2010
2006
10
20
30
40
50
60
70
GallupKanava, J une 2010
•Catalog or leaflet and newspaper distinctly most preferred reception channels for marketing
•Text message, phone call and door-to-door selling disfavored by a clear majority
•Choice of addressed letter for preferred channel distinctly diminished
•Catalog or leaflet and Internet increased most of their popularity
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Kari Elkelä - Itella BI 2012-03-21
9. Preferences according to channel's life
cycle, and mode of reception and use,
RECEPTION AND USE MODE
PHASE OF
Anonymous
Anonymous
Personal reception
CHANNEL LIFE
reception
CYCLE information search
Internet newspages
Text message
Internet search
New digital
services
Social media
Email
Radio
Traditional
electronic
Television
Phone call
Catalog or leaflet
Old paper
Newspaper
Unaddressed letter
Addressed letter
Neutrally accepted
Opinion separating
Less favored
Magazine
Preference scale
Favored
•Consumers prefer anonymous information search channels in the reception of marketing communication
•Attitude to anonymous reception channels is usually neutral
•Personal reception channels are considered least preferred because they are difficult to control
•Many consumers prefer letters, email and social media but on the other hand many others consider them
undesirable
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Kari Elkelä - Itella BI 2012-03-21
10. Utilities and use of marketing communication channels
UTILITY FOR NEW DIGITAL
CHANNELS
Informative
Entertaining
Personal
Interactive
Controllable
Environmentally responsible
Uses at least once a week
UTILITY FOR TRADITOINAL
ELECTRONIC CHANNELS
Text message
Email
Small
Very small
Very small
Very small
Pieni
Large
78 %
Medium
Small
Medium
Medium
Medium
Large
86 %
Radio
Television
Informative
Entertaining
Personal
Interactive
Controllable
Environmentally responsible
Uses at least once a week
UTILITY FOR OLD PAPER
CHANNELS
Medium
Medium
Medium
Medium
Medium
Large
83 %
Medium
Medium
Medium
Medium
Medium
Medium
91 %
Newspaper
Magazine
Informative
Entertaining
Personal
Interactive
Controllable
Environmentally responsible
Uses at least once a week
Medium
Medium
Medium
Medium
Large
Medium
88 %
Medium
Medium
Medium
Medium
Large
Medium
66 %
CHANNEL
Internet search
Intenet
services
newspages
Medium
Medium
Medium
Medium
Medium
Medium
Medium
Medium
Large
Large
Large
Large
83 %
78 %
CHANNEL
Phone call
Medium
Very small
Very small
Small
Very small
Medium
83 %
CHANNEL
Catalog or
Addressed letter
leaflet
Medium
Medium
Medium
Small
Medium
Medium
Medium
Small
Large
Medium
Medium
Medium
51 %
41 %
Social media
Medium
Medium
Small
Medium
Medium
Medium
45 %
Channel group
average
Medium
Small
Small
Medium
Medium
Large
Channel group
average
Medium
Small
Small
Small
Medium
Medium
Channel group
average
Medium
Medium
Medium
Medium
Large
Medium
•The strength in new digital channels is environmental responsibility, in paper it is controllability
•A text message and phone call are considered to be worst in their properties
•The majority of the consumers uses most channels at least once a week
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12. Process model of consumer preferences for
marketing communication channels
COMMUNICATION IN GENERAL
Utility sought
through
communication
channel
Use of
communication
channel
Perceived utility
received through
communication
channel
•Formation of consumer preferences for communication channels is continuous process
•Communication channels are used because of expected utilities
•The use experiences produce observations from perceived utilities
•These perceived utilities affect as feedback what utilities are expected in the future
•This forms a process which maintains, strengthens and weakens channel preferences. Especially,
launching a new channel can change these preferences
•All kind of use of communication channels have also an effect on marketing channel preferences
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Kari Elkelä - Itella BI 2012-03-21
13. Process model of consumer preferences for
marketing communication channels
COMMUNICATION IN GENERAL
Utility sought
through
communication
channel
Use of
communication
channel
Perceived utility
received through
communication
channel
MARKETING COMMUNICATION
Importance weight for
marketing channel
utility
Expectation value of
marketing utility for
each channel
Consumer
preferences for
marketing
communication
channels
•Consumers prefer marketing communication channels according to expected utilities weighed with their
evaluated importance
•Routine use of communication channels has also an effect on preferences of marketing communication
channels
•The changes in preferences are relatively slow because the consumers tend to continue their routines
•In the background of the model are theories of uses and gratifications, reasoned action, subjective
quality and expectation-confirmation
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Kari Elkelä - Itella BI 2012-03-21
14. Explanatory model of consumer preferences
for marketing communication channels
Expcted utilities of marketing
communication channels
weighted with their importance
Informative
Entertaining
Personal
Interactive
Controllable
Environmentally responsible
Utility from regularity
of use of each
communication
channel
Consumer
preferences for
marketing
communication
channels
Perceived utility
from product and
offer information
Channel-specific utilities explain the channel preferences for marketing communication:
•Information, entertainment, person and interaction utilities are adapted via uses and gratifications theory
by McQuail
•Controllability and the environmental responsibility are are adapted via other theories and empiric results
Model includes two additional utility variables:
•Regularity of use of communication channel, and perceived utility from marketing information
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Kari Elkelä - Itella BI 2012-03-21
15. General preference model for all marketing
communication channels
EXPLANATORY MODEL FOR VARIABLE:
Consumer preference for marketing
communication channels
Constant
Weighted exp.value: personal
Weighted exp.value: controllable
Regularity of use of messaging channel
Weighted exp.value: entertaining
Weighted exp.value: environment.responsible
Utility from marketing information
Weighted exp.value: informative
Weighted exp.value: interactive
SUMMARY FOR STEPWISE REGRESSION
Variable added with each step
Weighted exp.value: personal
Weighted exp.value: controllable
Regularity of use of messaging channel
Weighted exp.value: entertaining
Weighted exp.value: environment.responsible
Utility from marketing information
Weighted exp.value: informative
Weighted exp.value: interactive
Unstandardized Standardt
ized
B
Std. error
Beta
1,311
0,119
10,987
0,016
0,003
0,118
6,122
0,023
0,001
0,200
15,869
0,253
0,016
0,164
16,106
0,019
0,002
0,153
9,216
-0,011
0,001
-0,093
-9,078
0,111
0,017
0,071
6,418
0,011
0,002
0,091
6,148
0,007
0,002
0,051
2,916
Explanation
2
(R )
0,241
0,277
0,305
0,319
0,325
0,330
0,334
0,335
Correct- Std. error
2
ed
of
R
2
R
estimate change
0,241
0,276
0,304
0,319
0,324
0,329
0,333
0,334
2,455
2,397
2,351
2,326
2,317
2,308
2,301
2,300
0,241
0,036
0,028
0,014
0,006
0,005
0,004
0,001
Sig.
0,000
0,000
0,000
0,000
0,000
0,000
0,000
0,000
0,004
Collinearity
ToleVIF
rance
0,256
0,597
0,912
0,344
0,897
0,785
0,438
0,307
Change statistics
F
df1; df2
change
2225,463
345,239
281,716
147,260
60,168
55,221
42,667
8,500
1; 7009
1; 7008
1; 7007
1; 7006
1; 7005
1; 7004
1; 7003
1; 7002
3,908
1,674
1,097
2,904
1,114
1,273
2,284
3,259
Sig. F
change
0,000
0,000
0,000
0,000
0,000
0,000
0,000
0,004
•Estimated model includes all variables from the theoretical model
•First four variables have best explanation force according to Beta coefficients, controllable is the best
•Explanation per cent in all variable model is 33%
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Kari Elkelä - Itella BI 2012-03-21
16. Preference models for consumer and channel groups
Explanatory model of consumer
preferences for marketing
communication channels
TOTAL
CONSUMER GROUPS
Female
Male
15-24-year-olds
25-34-year-olds
35-49-year-olds
50-60-year-olds
Over 60-year-olds
Low level education
Middle level education
High level education
Lives in small town
Lives in middle-sized town
Lives in big town
Opinion leader
Follower
CHANNEL CROUPS
Paper messaging
Traditional electronic
New digital
Targetted messaging
Advertising mass com
Journalistic mass com
Infromation search
Reception
2
R
%
33,4
Standardized Beta-coefficients
Inform- Entertain- Personal Inter- Controll- Environ- Regular- Utility
ative
ing
active
able
mentally ity of use
from
respons- of mess- product
ible
aging and offer
channel information
0,091
0,153
0,118
0,051
0,200
-0,093
0,164
0,071
32,1
34,9
34,8
34,8
35,1
38,7
32,0
32,4
37,3
33,6
35,7
33,9
32,3
34,3
32,7
0,054
0,121
0,185
36,3
34,0
32,0
29,9
33,5
33,8
31,9
31,2
0,236
0,069
0,138
0,122
0,069
0,115
0,114
0,119
0,245
0,055
0,163
0,093
0,200
0,038
0,172
0,149
0,097
0,150
0,180
0,253
0,116
0,134
0,173
0,142
0,142
0,202
0,142
0,099
0,141
0,117
0,141
0,156
0,169
0,111
0,172
0,099
0,135
0,193
0,071
0,135
0,129
0,133
0,124
0,132
0,107
0,248
0,093
0,237
0,070
0,130
0,107
0,111
0,179
0,112
0,146
0,115
0,100
0,193
0,060
0,075
0,103
0,077
0,085
0,095
0,180
0,116
0,056
0,097
0,219
0,180
0,154
0,260
0,169
0,237
0,180
0,152
0,179
0,263
0,255
0,151
0,212
0,156
0,192
0,089
0,134
0,167
0,147
0,242
0,113
0,155
0,112
-0,138
-0,044
-0,054
-0,113
-0,107
-0,059
-0,050
-0,065
-0,117
-0,078
-0,061
-0,101
-0,099
-0,099
-0,088
-0,082
-0,038
-0,073
-0,073
-0,063
-0,039
-0,060
0,151
0,182
0,054
0,170
0,217
0,264
0,230
0,197
0,095
0,198
0,203
0,111
0,171
0,155
0,233
0,166
0,196
0,041
0,151
0,289
0,200
0,172
0,054
0,088
0,198
0,078
0,101
0,048
0,099
0,069
0,073
0,054
0,099
Effect of regular use
is emphasized with
age
Need for control is
emphasized with
education
information is most
important for opinion
leaders
0,057
0,128
0,072
0,050
0,072
0,098
0,105
0,124
0,075
History in life cycle:
information >
entertainment >
interaction
The controllability is
emphasized in the
clean advertising
•General explanation model is validated by consumer and channel group models. Their explanation per cents
are on the same level and they include the same explanatory variables (seven of possible eight on an average)
•Presence of controllability in all subgroup models emphasizes its significance
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Kari Elkelä - Itella BI 2012-03-21
18. Channel control is most important for
consumers
Ranking for utilities from marketing communication channels
Utilities which consumer
Utilities according to which Utilities in which channel
says important
consumers prefer channels are considered most
successful
Controllable
Controllable
Controllable
Informative
Regularity of use
Envíronmental responsibility
Envíronmental responsibility Entertaining
Informative
Personal
Personal
Interactive
•
•
•
•
18
The consumers themselves say that controllability is the most
important utility in channels
Controllability has the strongest influence on the realized channel
preferences
Many channels are highly controllable eg. Internet, papers, catalogs
and brochures
In their own words consumers tend to complain about attacking push
marketing, and interrupting of another more important doing, which are
opposites of controllability
Kari Elkelä - Itella BI 2012-03-21
19. Controllable marketing communication
channel is
1. Transferable
–
Received message can be easily stored and it is possible to move
acquaintance with it on better suitable time
2. Disregardable
–
Uninteresting marketing causes as few troubles as possible
3. Unobstrusive
–
19
Channel neither disturbs consumer's normal daily routines and is
nor considered attacking push marketing
Kari Elkelä - Itella BI 2012-03-21
20. Perceived controllability of marketing
communication channels
RECEPTION AND USE MODE
PHASE OF
Anonymous
Anonymous
Personal reception
CHANNEL LIFE
reception
CYCLE information search
Internet newspages
Text message
Internet search
New digital
services
Social media
Email
Radio
Traditional
Phone call
electronic
Television
Catalog or leaflet
Old paper
Newspaper
Unaddressed letter
Addressed letter
Magazine
Scale for
controllable
Large
Very large
Medium
Small
Very small
•Anonymous information search channels are regarded as most controllable
•Personal reception channels are reacted most critically. For this reason successful marketing in
these requires especially good know-how
•All the paper channels are at least a middle level in their controllability
•Poorly controllable channels are found among traditional electronic and new digital channels
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Kari Elkelä - Itella BI 2012-03-21
22. Research theoretical contributions
1. Process model of consumer preferences for marketing
communication channels
2. General explanation model of consumer preferences for marketing
communication channels
3. Finding of the controllability utility which explains channel
preferences best and specifying of the concept
4. Commensurable comparison of marketing communication channels
and developing of the tools needed in it
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Kari Elkelä - Itella BI 2012-03-21
23. Commercial recommendations
• The consumers' different channel preferences and their changes
should be taken in attention when marketing communication is
planned
• In targeted marketing should be better utilized buying behavior, phase
of life and other information that has already been collected from the
customers
• Be careful not to roll too much marketing to well-paid and wealthy
• All marketing channels should be treated impartially in planning
• Don't hurt consumer's feelings of the independence and
controllability, when taking into use new channels
• Be careful with research results which praise effectiveness of new
channels and have been done in different target groups and with
different samples
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Kari Elkelä - Itella BI 2012-03-21
24. Restrictions of results and further study
proposals
•
•
•
•
Because of large number of channels in comparison the preferences were
examined at a general level without taking into consideration situation factors,
message contents, or the phase of buying process
The classification of channels according to the properties is not absolute but was
done as a rule (sometimes for example a reception channel can serve as an
information search channel)
Research was done from the point of view of consumer and also new digital
channels were examined but the huge possibilities of social media were not
highlighted
Further study is needed:
– Preconditions, mistakes and developing means for targeted marketing
– Reasons for marketing prohibitions and means to prevent and remove them
– Effect of a social media and social filtering on the marketing
– Commensurable international comparison of channel preferences and their
change
– Qualitative study to understand occurred and expected changes
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Kari Elkelä - Itella BI 2012-03-21