Chapter 9: Communication and Consumer Behavior

Chapter 9: Communication and Consumer Behavior The Communication Model:

Formal Communication Source- marketer or organization

Informal Source- parent, friend, or other consumer, social networks, web forums Impersonal Communications- organizations that develop and transmit appropriate messages through their marketing departments, advertising or public relations agencies and spokespersons Interpersonal communications- can be either formal sources or informal sources Source credibility- perceived honesty and objectivity of the sponsor of communication have big influence on how communication is accepted by receiver Reference groups- serve as frames of reference for individuals in their consumption decisions because they are perceived as credible sources -normative- influencing broadly defined values or behavior (child’s normative reference group is immediate family) -comparative- reference groups serving as bench marks for specific or narrowly defined attitudes or behavior -membership- group which person belongs to or would qualify for membership -symbolic- professional tennis players may be symbol to amateur players

Credibility of formal sourses endorsor effectivness:

-effectiveness related to message and ease of comprehension -synergy between endorsor and product types are important -endorsors demographic characteristics should be similar to target -endorsosrs credibility is not a substitute for corporate credibilit -endorsors wrods must be realistic for them

Vendor credibility- the reputation of retailers Medium credibility- credibility of magazines, websites, radio station Effects of time on credibility- the sleeper effect phenomenon when the consumer does not remember the source (caused by dissociation of message from source over time, leaving just the message content in consumers memory)

Factors Affecting Decoding and Comprehension of Persuasive Messages: -personal characteristics and motives -involvement and congruency -mood -barriers to communication (selective exposure to messages, psychological noise)

Overcoming Psychological Noise: -repeating exposure to advertising messages -contrast break through clutter -customized personal message -effective positioning -offering unique value propositions

Media Channel: There are two types of media in today marketplace: 1. Mass media – traditional avenues advertisers have used and are generally classified as print (newspaper, magazines, billboards), and broadcast (tv, radio) (generally are impersonal because all receivers get same message transmitted by given source) 2. New media- (non traditional media) -out of home and on the go (advertising screens in buildings and transit, digital billboards on roads, ambient advertising) -online and mobile- includes consumer generated media, narrowcast messages -interactive TV (iTV) -non-traditional media is: -addressable –customized and addressed to different receivers -interactive- receivers can interact with sender -response measurable- receivers response can be measured

Designing Persuasive Communication: -message can be verbal (spoken or written) or nonverbal (pictures, symbols, diagrams) or combination of two Message Structure and Presentation: -resonance- used to create a double meaning when used with relevant picture –often humorous (wordplay) -message framing – whether marketers should use positive framing and negative framing -one-sided versus two-side messages – depends on nature of the audience and nature of competition -order effects –primacy, recency, order of benefits, brand name Advertising appeals- fear, sex, humor, timely, celebrities, abrasive, comparative, audience participation Types of Celebrity Appeal: -testimonial- based on person usage, a celebrity attests to the quality of the product or service -endorsement- celebrity lends his/her name and appears on behalf of a product or service with which he/she may or may not be an expert -actor- celebrity presents a product or service s part of a character endorsement -spokesperson- celebrity represents the brand or company over an extended period of time

Feedback Determining Effectiveness -exposure effects-how many consumers received the message? -persuasion effects-was the message received and interpreted correctly -sales effects- did the aids increase sales? -exposure- people meters -message attention, interpretation, and recall – physiological measures, attitudinal measures, recall and recognition measures