1 Chapter 4 The Consumer Audience. 2 Learning Objectives Understand the importance of learning about consumer behavior. Learn about various sources of.

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Chapter 4

The Consumer Audience

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Learning Objectives

Understand the importance of learning about consumer behavior.

Learn about various sources of influences on consumers.

Learn about how to manage involvement through advertising.

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What is Consumer Behavior?

Consumer Behavior is defined as “the process involved when individuals or

groups select, purchase, use, or dispose of products, services, ideas, or

experiences to satisfy needs and desires.” 1

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Hierarchy of Needs

Self-actualization

Golf Clubs “Time is to enjoy”

Esteem Luxury car “Be in control of the Road”

Social Pendant “Show her your care”

Safety Tires “Bounces off hazards”

Physiological Breakfast cereal “The natural energy source”

Need Product Promotional appeal

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Target Market

Organizations Design Specific MarketingStrategies to Reach

Markets’ Needs Effectively

Organizations Design Specific MarketingStrategies to Reach

Markets’ Needs Effectively

Group of People (Segment) Who AreMost Likely to Respond Favorably to

What a Marketer Has to Offer & to Provide the Highest Level of Profitability.

Group of People (Segment) Who AreMost Likely to Respond Favorably to

What a Marketer Has to Offer & to Provide the Highest Level of Profitability.

Ad Team Tries toUnderstand How & Why Consumers Think, Feel, and

Behave

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EXH 6-12

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The Consumer Decision Process of the Target Market (Fig. 4.1)

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CultureCulture is Defined as Shared Meanings that Together

Define a Group of People or a Way of Life.

Characteristics of CultureCharacteristics of Culture

Boundaries for Behavior are NormsBoundaries for Behavior are Norms

Source of Norms are ValuesSource of Norms are Values

Customs are Culturally AcceptableWays of Behaving in Situations

Customs are Culturally AcceptableWays of Behaving in Situations

Divide Into Subcultures Based onGeographic Regions or Characteristics

Divide Into Subcultures Based onGeographic Regions or Characteristics

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Values Are HardTo Change, Are Internal,

andGuide Behavior

Values Are HardTo Change, Are Internal,

andGuide Behavior

Self-RespectSelf-Respect Sense of BelongingSense of Belonging

SecuritySecurity ExcitementExcitement

Sense of Accomplishment

Sense of Accomplishment

Fun &Enjoyment

Fun &Enjoyment

Self-FulfillmentSelf-Fulfillment

Respect FromOthers

Respect FromOthers

Warm RelationshipsWarm Relationships

Core Values

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IncomeIncome

WealthWealth

EducationEducation

OccupationOccupation

Family PrestigeFamily Prestige

Value of HomeValue of Home

NeighborhoodNeighborhood

Marketers Assume That People in One Class Buy Different Goods From Different Outlets and For Different Reasons

Than People in Other Classes. It is Determined By:

Social Class

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ProvideInformation

ProvideInformation

Serve as Means of Comparison

Serve as Means of Comparison

OfferGuidance

OfferGuidance

Reference Groups - Collection of People That You Use as a Guide for

Behavior in SpecificSituations.

Reference Groups - Collection of People That You Use as a Guide for

Behavior in SpecificSituations.

Reference Groups and Family

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Psychological Influences on Consumers: Perception

Perception is the process of selecting, organizing, and interpreting information from the environment so that it has meaning for us.

Selective exposure refers to how we seek out information that interests us or is related to our needs, and we ignore unrelated stimuli.

Selective perception refers to how incoming information is modified or matched to the knowledge, experiences, and expectations we already have.

Cognitive dissonance involves justifying the feelings of dissonance or doubt that can occur in a purchase decision.

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Connectionist SchoolBehavioral Conditioning

Connectionist SchoolBehavioral Conditioning

Cognitive School Mental Processes

Cognitive School Mental Processes

Perception Leads to Learning; Learning

Often Leads to Changes in Purchasing or

Behavior.

Perception Leads to Learning; Learning

Often Leads to Changes in Purchasing or

Behavior.

Psychological Influences on Consumers: Learning

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OpinionsOpinions

NeedsNeeds

AttitudesAttitudesHobbiesHobbies

InterestsInterests

ValuesValues

PersonalityTraits

PersonalityTraits

ActivitiesActivities

Psychographics

Refers to all the Psychological Variables That

Combine to Shape Our Inner

Selves

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The VALS 2 System

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Station Break

Go to the SRI International Web site at www.future.sri.com and participate in an actual VALS lifestyle survey.Next, discuss the characteristics of the online shopper or e-buyer.How is this group different from the eight groups described in Figure 4.5?What are your thoughts on how to construct a VALS scheme that would aid advertisers that are seeking to advertise internationally? Notice how SRI has approached this problem.

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High-Involvement DecisionsSpending a Great Deal of Effort on

Expensive, Personal, Emotion-Laden Productsi.e. Cars

High-Involvement DecisionsSpending a Great Deal of Effort on

Expensive, Personal, Emotion-Laden Productsi.e. Cars

Low-Involvement DecisionsAcquiring Products Purchased Regularly

i.e. Milk

Low-Involvement DecisionsAcquiring Products Purchased Regularly

i.e. Milk

Am

ou

nt

of

Inv

olv

em

en

tLow- and High-Involvement

Decision Process

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Steps in the Decision Process (Fig. 4.6)

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The ELM (Elaboration Likelihood Model):

Involvement ( determined by motivation, ability, and opportunity) determines which route to take

Central route (high involvement) vs. Peripheral route (low involvement)

Different types of attitude changes: Argument based v ad-execution based Enduring, resistant to change v. temporal change

==>Implications for advertising practitioners: How to manage involvement

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Enhancing Consumers’ Involvement

Enhance Consumers’ MOTIVATION to

A. Attend to the message by… Appealing to hedonic needs (Appetite appeals,

sex appeals) Using novel stimuli (unusual pictures, different

ad formats, large number of scenes) Using intense or prominent cues (action, loud

music, colorful ads, celebrities, large pictures) Heightening ad complexity (complex pictures;

edits and cuts)

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Enhancing Consumers’ Involvement

B. Process brand information by.. Increasing relevance of brand to self

(asking rhetorical questions, using fear appeals, using dramatic presentations)

Increasing curiosity about the brand (opening with suspense or surprise, using humor, presenting little information in the message)

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Enhancing Consumers’ Involvement

Enhance Consumers’ OPPORTUNITY to…

A. Encode information by… Repeating brand information Repeating key scenes Repeating the ad on multiple occasions

B. Reduce processing time by… Creating gestalt processing (using pictures and

imagery

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Enhancing Consumers’ Involvement

Enhance Consumers’ ABILITY to..

A. Access knowledge structures by… Providing a context (employing verbal

framing)

B. Create knowledge structures by… Facilitating exemplar-based learning

(using concretizations, demonstrations, and analogies)

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Factors that Influence Consumers’ Involvement with Products and Brands

Lower involvement Higher involvement

Symbolic meanings regarding self:

Few self-meanings (Pretzels)

Social visibility of product:

Not socially visible (Toothpaste)

Time commitment to the purchase:

Very short (Soft drink)

Price:

Low Price (Chewing gum)

Potential harm to self and others:

Small potential for harm (Ink pen)

Potential for poor performance:

Small potential for poor performance (Note pad)

Many self-meanings (Clothing)

High social visibility

(Personal cassette player)

Very long (Hot water heater)

High price (Caviar)

Larger potential for harm

(Climbing equipment)

Large potential for poor performance (Aerobic shoes)

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Review

Understand the importance of learning about consumer behavior.

Learn about various sources of influences on consumers.

Learn about how to manage involvement through advertising.