1. Communication & Consumer behavior

2. Class objectives Outline the consumer perception process & explain why “perception is reality” Explain the human communication process and how it impacts advertising Discuss various influenceson consumer behavior Discuss consumers’ motivations Describe how a consumer’s level of involvement with a product influences them Outline the steps of the consumer purchase decision process

3. The Human Communication Process Source Encoding Message Channel  Noise  Decoding Receiver Feedback

4. IN LIFE… Source: Your friend Ann Message: Coffee Invitation Channel: Text message Receiver: You You Kate & Ann Cant. Studying. :( Im w K8 @ *$. Join us?

5. In Advertising… Source: The sponsor, Evian Message: The ad Channel: The medium, print Receiver: The consumer Evian ad uses a symbol to encode its message

6. BROKEN CODE Sometimes 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 advertising DirecTV offers interactive advertising that allows consumers to give feedback, receive information, or redeem offers.

9. noise Advertisers compete with thousands of others for their message to be heard by consumers, i.e. noise.

10. Consumer behavior Consumer 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 processes Perception: the personalized way we sense, interpret and comprehend stimuli. PERSONAL PROCESSES Perception Learning & Persuasion Motivation Learning: 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: COOKIES Perception: 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.

14. Promotion

15. News item

16. Product/store

17. Price tag

18. Conversation

19. Sight

20. Hearing

21. Touch

22. Taste

23. Smell

24. Personality

25. Self-concept

26. Attitudes

27. Beliefs

28. Habits

29. Information

30. Needs

31. WantsAwareness Nonawareness Feedback

33. I don’t drink alcohol

38. LOGO EXERCISE How many of these company logos made it through our filters? http://www.sporcle.com/games/corplogos.php

39. Learning and Persuasion High Engagement: I’m Hungry Example: Pizza Hut product placement On FX TV series “The League” Stimulus Need/Want Drive to Respond Response Reinforced Satisfaction Dissatisfaction Photo: xiaoxiazhuang.com

40. Learning & persuasion Low Engagement: I Don’t Want/Need Shoes This ad for Keds aims to create a positive attitude so consumers will remember the brand when the need/want is stimulated.

41. Results of Learning Brand Loyalty Habit Brand Interest Example: 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. Attitude Danby countertop dishwasher Photo: appliancist.com

42. Needs are basic & often instinctive Wants are learned during lifetime Maslow’s hierarchy of needs Motivation Motivation: underlying forces driving decisions Insert ex. 5-5, p. 154 Maslow’s Hierarchy table Position = 0.35” horiz, 3.5” vertical Size = 8.2” WIDE Resolution = 300 dpi

44. Esteem

46. CONSUMER Influences Interpersonal Family Culture Society: Reference Groups & Opinion Leaders What 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 process Your 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 process Evoked set = valid product alternatives.

49. Decision process Evaluative criteria = the standards a consumer uses to judge the features & benefits of alternative products.

50. Decision process Cognitive dissonance = consumer’s justification of his/her behavior by reducing the dissonance (inconsistency) between their cognitions (perceptions, beliefs) and reality.

51. Decision process Postpurchase evaluation= the phase where a consumer evaluates whether an exchange was satisfying or not and reinforces or rejects the decision, updates mental files.