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Beginning of Part 2
The Planning: Analyzing the Advertising and
 Integrated Brand Promotion Environment


   We have finished the Process phase of the
    text and moving on to Planning
   Our perspective changes from a broad view
    of advertising and IBP to a managerial view.
   The Planning phase leads to the
    development of advertising and IBP
    materials



                                                   1
                                      PPT 5-1
Chapter 5

                         Advertising, Integrated Brand
                          Promotion and Consumer
                                   Behavior


                                                                         2
                                                               PPT 5-2
© 2009 South-Western, a part of Cengage Learning
Consumer Behavior

         Consumer Behavior: a wide spectrum of
         things that affect, derive from, or form the
         context of human consumption.
Perspectives:
2. Consumers are Systematic Decision Makers
         Maximizing the benefits from purchases defines the
          purchase—consumers are deliberate

3. Consumers are Active Interpreters
         Cultural/social membership defines purchases
         Consumers are “meaning makers” in their consumption
                                                                3
                                                      PPT 5-3
Consumer Decision-Making: The
  Consumer as a Systematic Decision
               Maker



The Consumer is:
   Logical
   Purposeful
   Acts in a “sequential” manner in making
    decisions



                                                4
                                      PPT 5-4
The Consumer Decision-
             making Process
       1.    Need recognition
                Functional or Emotional benefits

                       1.    Information Search and Evaluation
                                 Internal and External search
                                 Consideration Set
                                 Evaluative Criteria

                                     1.   Purchase


                                           4. Post-purchase use and evaluation
                                                 Customer satisfaction
                                                 Cognitive dissonance
Does this ad offer a functional or
                                                                            5
emotional benefit?                                                PPT 5-5
Cognitive Dissonance

The feelings of doubt and concern after a purchase
is made. Dissonance increases when

  1.   The purchase price is high
  2.   There are many close alternatives
  3.   The item is intangible (example?)
  4.   The purchase in important
  5.   The item purchased lasts a long time


                                                  6
                                        PPT 5-6
Modes of Consumer Decision-Making:
Vary by Involvement and Experience


   2. Involvement
           Interests and avocations
           Risk—high price or long term commitment
           High symbolic meaning to purchase
           Deep emotion attached to purchase

   3. Experience
         More experience, more astute consumer


                                                      7
                                         PPT 5-7
4 Modes of Consumer Decision-Making:
           (Vary by involvement and experience)



  1. Extended Problem Solving
          Deliberate, careful search

    1. Limited Problem Solving
               Common products, limited search

       3. Habit or Variety Seeking
                 Variety seeking—switch brands at random
                 Habit—buy single brand repeatedly
            4. Brand Loyalty
                 Conscious commitment to find same brand each
                  time purchase is made


                                                                 8
                                                  PPT 5-8
Key Psychological Processes
           in Advertising


2. Attitude
        Over Overall evaluation of an object person or
         issue on continuum=like/dislike;
         positive/negative
3. Brand Attitude
        Summary evaluations that reflect preferences
         for various products and services
4. Salient Beliefs
        Small number of key beliefs. Five to nine
         salient beliefs typically form the critical
         determinants of attitude


                                                                 9
                                                       PPT 5-9
Key Psychological Processes
Multi-Attribute Models (MAAMs)
     Evaluative Criteria: attributes consumers use to
      compare brands


     Importance Weights: priority assigned to attributes

     Consideration Set: group of brands that are focal point
      of decision effort


     Beliefs: knowledge and feelings consumer has about
      various brands

                                                                10
                                                PPT 5-10
Key Psychological Processes
 Information Processing and Perceptual Defense
    Cognitive Consistency Impetus: Strongly held beliefs to
      make efficient decisions

    Advertising Clutter: Large volume of ads causes overload

    Selective Attention: Most ads are ignored because they
       do not fit consumer’s need state


    Cognitive responses: Thoughts that occur to consumer at
      moment when beliefs are challenged by persuasive
      communication

                                                              11
                                                PPT 5-11
Key Psychological Processes


The Elaboration Likelihood Model (ELM)
   “Central route” persuasion when involvement is
    high
   “Peripheral route” with peripheral cues rather
    than strong arguments when involvement is low




                                                     12
                                          PPT 5-12
Perspective Two:
The Consumer as Social Being


 Perspective One: The consumer as a
  decision maker can tells only part of the
  story.
 Consumption can be a social and cultural
  process as well




                                              13
                                  PPT 5-13
Consuming in the Real World

           Family        Values    Object
                                  Meaning

   Social
   class                                    Rituals



                                                   Gender
Community

                                                Geo-
 Culture                                        politics

              Race /                     Reference
             Ethnicity                    Groups
                                    (membership/aspiration)
                                                              14
                                              PPT 5-14
Advertising, Social Rift and
              Revolution


Advertisers see and seize the opportunity to
 provide “costumes” and “consumables”
   “Revolutions” require a certain “look”
   “Looks” signal political/social orientation




                                                    15
                                         PPT 5-15
Advertising as Social Text: How Ads
 Transmit Socio-cultural Meaning


          Culturally constituted world
          Advertising /
                              Fashion
        fashion system
                              system


                Consumer goods

 Possession    Exchange   Grooming      Divestment
    ritual       ritual     ritual         ritual


              Individual consumer
                                                     16
                                        PPT 5-16
Factors Affecting Consumer
       Decision Making
REFERENCE            VALUES / ATTITUDES          CULTURE       SITUATIONAL
 GROUPS                                                          FACTORS


          NEEDS
                                                           EDUCATION
                              CONSUMER
PLEASURE                      DECISIONS
                                                                 PERSONALITY
           GENDER

                                                   MARKETER-
                                                  CONTROLLED
 FAMILY           MEDIA    SOCIAL                   STIMULI
                           CLASS
       NEWS                            PAST
    MAGAZINES                                                     PRICE
      RADIO
                                    EXPERIENCE                  PACKAGING
    TELEVISION                                                 ADVERTISING
   DIRECT MEDIA                                                 PROMOTION
      BLOGS                                                  PERSONAL SELLING
  INTERNET INFO       LIFE-STYLE          SUBCULTURES

                                                                           17
                                                            PPT 5-17

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Chapter 05

  • 1. Beginning of Part 2 The Planning: Analyzing the Advertising and Integrated Brand Promotion Environment  We have finished the Process phase of the text and moving on to Planning  Our perspective changes from a broad view of advertising and IBP to a managerial view.  The Planning phase leads to the development of advertising and IBP materials 1 PPT 5-1
  • 2. Chapter 5 Advertising, Integrated Brand Promotion and Consumer Behavior 2 PPT 5-2 © 2009 South-Western, a part of Cengage Learning
  • 3. Consumer Behavior Consumer Behavior: a wide spectrum of things that affect, derive from, or form the context of human consumption. Perspectives: 2. Consumers are Systematic Decision Makers  Maximizing the benefits from purchases defines the purchase—consumers are deliberate 3. Consumers are Active Interpreters  Cultural/social membership defines purchases  Consumers are “meaning makers” in their consumption 3 PPT 5-3
  • 4. Consumer Decision-Making: The Consumer as a Systematic Decision Maker The Consumer is:  Logical  Purposeful  Acts in a “sequential” manner in making decisions 4 PPT 5-4
  • 5. The Consumer Decision- making Process 1. Need recognition  Functional or Emotional benefits 1. Information Search and Evaluation  Internal and External search  Consideration Set  Evaluative Criteria 1. Purchase 4. Post-purchase use and evaluation  Customer satisfaction  Cognitive dissonance Does this ad offer a functional or 5 emotional benefit? PPT 5-5
  • 6. Cognitive Dissonance The feelings of doubt and concern after a purchase is made. Dissonance increases when 1. The purchase price is high 2. There are many close alternatives 3. The item is intangible (example?) 4. The purchase in important 5. The item purchased lasts a long time 6 PPT 5-6
  • 7. Modes of Consumer Decision-Making: Vary by Involvement and Experience 2. Involvement  Interests and avocations  Risk—high price or long term commitment  High symbolic meaning to purchase  Deep emotion attached to purchase 3. Experience  More experience, more astute consumer 7 PPT 5-7
  • 8. 4 Modes of Consumer Decision-Making: (Vary by involvement and experience) 1. Extended Problem Solving  Deliberate, careful search 1. Limited Problem Solving  Common products, limited search 3. Habit or Variety Seeking  Variety seeking—switch brands at random  Habit—buy single brand repeatedly 4. Brand Loyalty  Conscious commitment to find same brand each time purchase is made 8 PPT 5-8
  • 9. Key Psychological Processes in Advertising 2. Attitude  Over Overall evaluation of an object person or issue on continuum=like/dislike; positive/negative 3. Brand Attitude  Summary evaluations that reflect preferences for various products and services 4. Salient Beliefs  Small number of key beliefs. Five to nine salient beliefs typically form the critical determinants of attitude 9 PPT 5-9
  • 10. Key Psychological Processes Multi-Attribute Models (MAAMs)  Evaluative Criteria: attributes consumers use to compare brands  Importance Weights: priority assigned to attributes  Consideration Set: group of brands that are focal point of decision effort  Beliefs: knowledge and feelings consumer has about various brands 10 PPT 5-10
  • 11. Key Psychological Processes Information Processing and Perceptual Defense  Cognitive Consistency Impetus: Strongly held beliefs to make efficient decisions  Advertising Clutter: Large volume of ads causes overload  Selective Attention: Most ads are ignored because they do not fit consumer’s need state  Cognitive responses: Thoughts that occur to consumer at moment when beliefs are challenged by persuasive communication 11 PPT 5-11
  • 12. Key Psychological Processes The Elaboration Likelihood Model (ELM)  “Central route” persuasion when involvement is high  “Peripheral route” with peripheral cues rather than strong arguments when involvement is low 12 PPT 5-12
  • 13. Perspective Two: The Consumer as Social Being  Perspective One: The consumer as a decision maker can tells only part of the story.  Consumption can be a social and cultural process as well 13 PPT 5-13
  • 14. Consuming in the Real World Family Values Object Meaning Social class Rituals Gender Community Geo- Culture politics Race / Reference Ethnicity Groups (membership/aspiration) 14 PPT 5-14
  • 15. Advertising, Social Rift and Revolution Advertisers see and seize the opportunity to provide “costumes” and “consumables”  “Revolutions” require a certain “look”  “Looks” signal political/social orientation 15 PPT 5-15
  • 16. Advertising as Social Text: How Ads Transmit Socio-cultural Meaning Culturally constituted world Advertising / Fashion fashion system system Consumer goods Possession Exchange Grooming Divestment ritual ritual ritual ritual Individual consumer 16 PPT 5-16
  • 17. Factors Affecting Consumer Decision Making REFERENCE VALUES / ATTITUDES CULTURE SITUATIONAL GROUPS FACTORS NEEDS EDUCATION CONSUMER PLEASURE DECISIONS PERSONALITY GENDER MARKETER- CONTROLLED FAMILY MEDIA SOCIAL STIMULI CLASS NEWS PAST MAGAZINES PRICE RADIO EXPERIENCE PACKAGING TELEVISION ADVERTISING DIRECT MEDIA PROMOTION BLOGS PERSONAL SELLING INTERNET INFO LIFE-STYLE SUBCULTURES 17 PPT 5-17