MOTIVATION

Needs and Motivation

People who achieve their goals set new and

higher goals for themselves Substitute Goals

Needs are the essence of the marketing

concept. Marketers do not create needs but can make consumers aware of needs.

Construction building or creating things Needs Reflecting Ambition, Power, Accomplishment, and Prestige:

Are used when a consumer cannot attain a

specific goal he/she anticipates will satisfy a need

Superiority being above others Achievement success, accomplishment and overcoming obstacles Recognition displaying achievements, gaining approval and social status Exhibition shocking or thrilling other people; attracting attention Infavoidance avoiding failure, shame, humiliation, ridicule or concealing a weakness Defendance defensive attitude; justifying actions

Motivation:
is the driving force within individuals that
impels them to action refers to the processes that lead people to behave as they do (occurs when a need is aroused that the consume wishes to satisfy) refers to an activated state within a person that leads to goal-oriented behavior; consists of drives, urges, wishes, or desires that initiate the sequence of events leading to a behavior what gets you goingand what keeps you going Types of Needs

The substitute goal will dispel tension Substitute goals may actually replace the
primary goal over time Philosophies Concerned with Arousal of Motives

Behaviorist School
Behavior is response to stimulus Elements of conscious thoughts are to be
ignored

Consumer does not act, but reacts Behavior is directed at goal achievement Needs and past experiences are reasoned,
categorized, and transformed into attitudes and beliefs Abraham Maslows Hierarchy of Needs 5. Self-Actualization (self-fulfillment) 4. Ego Needs (prestige, status, self-esteem) 3. Social Needs (affection,friendship, belonging) 4. Safety and Security Needs (Protection, Order) 5. Physiological Needs (food, water, air) 1. Biological and Physiological needs - air, food, drink, shelter, warmth, sex, sleep, etc. 2. Safety needs - protection from elements, security, order, law, limits, stability, etc. 3. Belongingness and Love needs - work group, family, affection, relationships, etc. 4. Esteem needs - self-esteem, achievement, mastery, independence, status, dominance, prestige, managerial responsibility, etc. 5. Self-Actualization needs - realizing personal potential, self-fulfillment, seeking personal growth and peak experiences 1970s Adapted Hierarchy of Needs 1. Biological and Physiological needs 2. Safety needs 3. Belongingness and Love needs 4. Esteem needs 5. Cognitive needs - knowledge, meaning, etc. 6. Aesthetic needs - appreciation and search for beauty, balance, form, etc. 7. Self-Actualization needs 1990s Adapted Hierarchy of Needs 1. Biological and Physiological needs 2. Safety needs 3. Belongingness and Love needs 4. Esteem needs 5. Cognitive needs 6. Aesthetic needs 7. Self-Actualization needs 8. Transcendence needs - helping others to achieve self actualization. Henry Murrays List of Psychogenic Needs Needs Associated with Inanimate Objects:

Innate Needs Physiological (or biogenic) needs Cognitive School

that are considered primary needs or motives

Counteraction counteractive attitude; defending honor Needs Connected with Human Power: Dominance controlling and leading others Deference obeying and cooperating with others; following a superior, serving Similance empathizing with others; suggestible attitude Autonomy independence and resistance; resisting others and standing strong

Acquired Needs Learned in response to our

culture or environment. Are generally psychological and considered secondary needs Goals. The sought-after results of motivated behavior

Generic goals are general categories of goals

that consumers see as a way to fulfill their needs

Product-specific goals are specifically branded

products or services that consumers select as their goals The Selection of Goals

Contrariance being unique; acting differently from others Sado-Masochistic Needs : Aggression injuring others Abasement confessing and apologizing; surrendering and accepting punishment Needs Concerned with Affection between People:

The goals selected by an individual depend on

their:

Personal experiences Physical capacity Prevailing cultural norms and values Goals accessibility in the physical and social
environment Motivations and Goals Positive

Affiliation spending time with other people; making associations and friendships Rejection rejecting other people; excluding another Nurturance taking care of another person; nourishing, aiding, or protecting the helpless Succorance being helped or protected by others; seeking aid, protection or sympathy

Motivation.

A driving force TOWARD some object or condition

Approach Goal. A positive goal toward which

behavior is directed Negative object or condition

Play having fun with others Needs Concerned with Social Intercourse:
Cognizance seeking knowledge and asking questions; Inquiring attitude Exposition educating others, providing information; expositive attitude

Motivation A driving force AWAY from some Avoidance Goal.

A negative goal from which behavior is directed away Rational versus Emotional Motives

Rationality implies that consumers select goals

based on totally objective criteria such as size, weight, price, or miles per gallon

A Trio of Needs (Developed by David McClelland)

Need for Power (nPow)

individuals desire to control environment
(other persons, various objects) the desire to obtain and exercise control over others; the goal is to influence, direct and possibly dominate other people can have 2 directions: positive (resulting in persuasive and inspirational power), or negative (resulting in the desire to dominate and obtain submission from others)

Emotional motives imply the selection of goals

according to personal or subjective criteria The Dynamic Nature of Motivation

Acquisition/Conservancy obtaining things/possessions Order making things neat and organized; arranging, organizing and being precise Retention keeping things

Needs are never fully satisfied New needs emerge as old needs are satisfied

Need for Affiliation (nAff)

need for friendship, acceptance, and belonging variable that interacts with the consumer similar to Maslows belongingness needs situation and/or type of message being communicated what motivates people to make friends, join
groups and associate with others rank the desire to be with others ahead of the need to succeed

Moderating variable: an individual-difference Consumer situation: temporary environmental

factors that form the context within which a consumer activity occurs EXAMPLE: the social context in which purchases take place Researchers have found that consumers act differently when other people are observing their purchase behavior than when they believe they are unobserved. This situational variable may interact with a personality characteristic that distinguishes individuals on their tendency to conform to social pressures when making purchases The ATSCI (attention to social comparison information) scale has been developed to measure this disposition to conform Findings: A person who has a low tendency to conform will tend to make her desired purchases whether she is shopping alone or with a group Someone with a high tendency to conform will make many more changes in purchase plans when shopping with a group than when shopping alone Thus, the personality variable ATSCI moderates the impact of the situation on consumer behavior.

Referee in the fight between temptation and virtue Balances opposing forces according to the reality principle

Freudian Theory and Consumer Behavior

Need for Achievement (nAch)

need for personal accomplishment closely related to egoistic and selfactualization needs seek to get ahead, strive for success, and take responsibility for solving problems

Consumer researchers using Freuds personality

theory see consumer purchases and/or consumption situations as a reflection and extension of the consumers own personality

A person channels his/her unacceptable desire

into acceptable outlets by using products that signify these underlying desires. This is the connection between symbolism and motivaton: The product stands for or represents a consumers true goal. By acquiring the product, the person is able to vicariously experience the forbidden fruit. Neo-Freudian Personality Theory

What Is Personality?

PERSONALITY

The (enduring) inner psychological

characteristics that both determine and reflect how a person responds to his/her environment

Inner characteristics: specific qualities,

attributes, traits, factors, mannerisms that distinguish one individual from other individuals

We seek goals to overcome feelings of

inferiority

Likely to influence product choices, response

to marketers promotional efforts, and when/where/how they consume particular products/services

We continually attempt to establish

relationships with others to reduce tensions

Karen Horney was interested in child-parent

relationships and desires to conquer feelings of anxiety. Proposed three personality groups Compliant move toward others, they desire to be loved, wanted, and appreciated Aggressive move against others, competes with others Detached move away from others, desires independence, self-sufficiency, and freedom from obligations Trait Theory

A persons unique psychological makeup and

how it consistently influences the way a person responds to his/her environment

Theories of Personality The Nature of Personality Personality reflects individual differences Freudian theory No 2 individuals are exactly alike; many Unconscious needs or drives are at the heart individuals may be similar in a single personality characteristic but not in others of human motivation Enables marketers to categorize customers Neo-Freudian personality theory into different groups on the basis of one or several traits Social relationships are fundamental to the formation and development of personality Personality is consistent and enduring Essential to explain/predict consumer behavior Trait theory in terms of personality Quantitative approach to personality as a set Marketers cannot change consumers of psychological traits personalities to conform to their products but can attempt to appeal to the relevant traits (those influencing consumer responses) inherent Freudian Theory in their target market/consumers Sigmund Freuds psychoanalytic theory of Consumption behavior varies due to personality was built on the premise that psychological, socio-cultural, environmental, unconscious needs or drives, especially sexual situational factors [Personality is only 1 of a and other biological drives, are at the heart of combination of factors that influence behavior] human motivation and personality

Personality theory with a focus on

psychological characteristics

Primarily a quantitative/empirical approach

with the use of personality tests

Trait - any distinguishing, relatively enduring

way in which one individual differs from another

Personality is linked to how consumers make

their choices or to consumption of a broad product category - not a specific brand Trait Theory

Personality can change By major life events By a gradual maturing process Personality stereotypes may change over time
Aspects of Personality

Human personality results from a dynamic

struggle between inner physiological drives (e.g. hunger, sex, aggression) and social pressures to follow laws, rules and moral codes. Id Warehouse of primitive or instinctual needs for which individual seeks immediate satisfaction Entirely oriented toward immediate gratification The party animal of the mind Operates according to the pleasure principle

Innovativeness Dogmatism Social character Need for uniqueness Optimum stimulation level Variety-novelty seeking
1. Innovativeness. The degree to which consumers are receptive to new products, new services, or new practices 2. Dogmatism. Reflects the degree of rigidity a person displays toward the unfamiliar and toward information that is contrary to his/her own established beliefs If low in dogmatism (open-minded): likely to prefer innovative products If high in dogmatism: more receptive to ads for new products that contain an appeal from an authoritative figure

Behavior shows consistency Behaviors distinguish one person from another Behaviors interact with the situation Single measures of personality cannot predict
specific behaviors, such as what brand a consumer will purchase * Moral: Behavior must be measured on multiple occasions to assess personality-behavior relationships accurately Focus: 4th Aspect of Personality

Superego Individuals internal expression of societys moral and ethical codes of conduct Counterweight of the id The persons conscience

Single measures of personality cannot predict

specific behaviors

Moderates the effects of advertising messages

and marketing situations on consumer behavior

Ego 3. Social character. Ranges on a continuum: Individuals conscious control that balances Inner-directedness the demands of the id and superego rely on own values when evaluating System that mediates between the id and products the superego consumer innovators

prefer ads that stress product features/personal benefits Other-directedness look to others less likely to be innovators prefer ads that feature an approving social environment or social acceptance 4. Need for uniqueness. Consumers who avoid appearing to conform to expectations or standards of others 5.Optimum stimulation level. Measures the level or amount of novelty or complexity that individuals seek in their personal experiences Reflects a persons level of lifestyle stimulation High OSL consumers tend to accept risky and novel/new products more readily than low OSL consumers. 6. Variety Novel-Seeking. Measures a consumers degree of variety seeking: Exploratory Purchase Behavior (brand switching) Use Innovativeness (using an already adopted product in a new/novel way) Vicarious Exploration (obtaining information about new and different alterna-tives, then contemplating/ daydreaming about the option) Specific Traits Related to Consumer Behavior

internal driver. VALS reflects a real-world pattern that explains the relationship between personality traits and consumer behavior. VALS uses psychology to analyze the dynamics underlying consumer preferences and choices. VALS not only distinguishes differences in motivation, it also captures the psychological and material constraints on consumer behavior.

Cognitive Personality Factors

Need for cognition (NC)

A persons craving for or enjoyment of thinking Individual with high NC more likely to respond
to ads rich in product-related information of description More responsive to cool colors

If low NC, more likely to be attracted to the

background or peripheral aspects of an ad VALS is based on current personality research Spend more time on print content, into specific components of social behavior. VALS have much stronger brand recall asserts that people express their personalities Plays a role in an individuals use of the through their behaviors. People with different Internet personalities engage in different behaviors or exhibit similar behaviors for different reasons. Visualizers versus verbalizers

A persons preference for information

presented visually or verbally

Visualizers prefer visual information and

products that stress the visual

Verbalizers prefer written/verbal information

whether to stress visual or written elements in their ads From Consumer Materialism to Compulsive Consumption

and products that stress the verbal over graphics and images

This distinction helps marketers know

Innovativeness:
The degree to which a person likes to try new
things

Consumer materialism
The extent to which a person is considered
materialistic

Materialism:
Amount of emphasis placed on acquiring/
owning products Regarding possessions as essential to identities and lives

A trait of people who feel their possessions

are essential to their identity

Self-Consciousness:
The degree to which a person deliberately
monitors and controls the image of the self that is projected to others

Value acquiring and showing off possessions;

self-centered and selfish; seek lifestyles full of possessions and their possessions do not give them greater happiness

Need for Cognition:

Degree to which a person likes to think about
things and expands the necessary effort to process brand information

Often linked to advertising

The Big 5 Dimensions*

The Big Five encompasses trait distinctions in

most cultures:

Fixated consumption behavior

Consumers fixated on certain products or Characterized by:
Deep/passionate interest in a particular
object/product category categories of products but still in the realm of normal and socially acceptable behavior

Frugality:
Deny short-term purchasing whims, choosing to
resourcefully use what they already own

VALS (Values and Lifestyle System) The original VALS system was built by consumer futurist Arnold Mitchell to explain changing U.S. 7 Mindsets of the Filipino Consumer* values and lifestyles in the 1970s. Passive Survivors: Life is a series of ups and downs over which I have little control A marketing and consulting tool that helps businesses worldwide develop and execute more Relationship-Centered: My relationships, particularly with my family, matter to me more effective strategies. than anything else in the world The system identifies current and future opportunities by segmenting the consumer Advisers: I work to realize my full potential, marketplace on the basis of the personality contribute to society, and, in so doing, find traits that drive consumer behavior. more meaning in my life.

Surgency/Extraversion Agreeableness Conscientiousness Emotional Stability Intellect

Willing to go to considerable lengths to obtain

more of the desired object/product searching for the object/product

Dedicate considerable time and money to

Includes collectors or hobbyists

Compulsive consumption behavior

Addicted or out-of-control consumers Their actions may have damaging
consequences to them and those around them

The basic tenet of VALS is that people express

their personalities through their behaviors. VALS specifically defines consumer segments on the basis of those personality traits that affect behavior in the marketplace. Rather than looking at what people do and segregating people with like activities, VALS uses psychology to segment people according to their distinct personality traits. The personality traits are the motivationthe cause. Buying behavior becomes the effectthe observable, external behavior prompted by an

Achievers: I am success-oriented and confident in all that I do Happy Adventurers: I am fun-loving. I constantly seek new and exciting experiences. Approval-Seekers: I want to be accepted and to belong. I fear failure and losing face. Control Seekers: I am orderly and organized in everything I do. I am focused and directed in all the tasks I do.

In the realm of abnormal behavior

Brand Personality

Personality-like traits associated with brands Examples

Freshness Athlete Performance driven Dependable

Can either be functional or symbolic

Brand personality which is strong and favorable Makeup of the self-image will strengthen a brand but not necessarily Extended self demand a price premium Altering the self- image Brand Personification

Consumers use self-altering products to express individualism or uniqueness by

Recasts consumers perception of the

attributes of a product/service into the form of a human-like character

1.One or multiple selves. A single consumer will act differently in different situations or with different people

Creating new self Maintaining the existing self Extending the self Conforming to/taking on the appearance of a
particular type of person Marketing Implications of Self-Concept

Consumers can express their inner feelings

about products or brands in terms of associations with a known personality

We have a variety of social roles Marketers can target products to a particular

self

Identifying consumers current brand

For marketers it is important to know that

personality link or creating one for new products 2.Makeup of self-image. are important marketing tasks Contains traits, skills, habits, possessions, Product Personality Issues relationships and ways of behavior Gender Developed through background, experience, A product personality/persona often means and interaction with others (unique) that the product/brand has a gender Consumers select products congruent with this Some products perceived as masculine while image others as feminine (i.e. they have a genderMarketers can segment their markets on the being) basis of relevant consumer self-images, and Knowing the perceived gender of a product or position their products as symbols for such selfspecific brand, marketers are in a better images position to select visual and copy-text for various marketing messages

consumers make purchase decisions to support their self concept.

Using research techniques to identify how

customers view themselves may give marketers insight into products and promotion options that are not readily apparent.

For example, when examining consumers a

marketer may initially build marketing strategy around more obvious clues to consumption behavior, such as consumers demographic indicators (e.g., age, occupation, income).

However, in-depth research may yield

Geography
Certain products, in the minds of consumers,
possess a strong geographical association Using the geographical association can create a geographical equity Actual locations or fictitious names of places are used

Different Self-Images

information that shows consumers are purchasing products to fulfill self-concept objectives that have little to do with the demographic category they fall into (e.g., senior citizen may be making purchases that make them feel younger).

Actual SelfImage

Ideal SelfImage

Appealing to the consumers self concept needs

Color
Consumers tend to associate personality
factors with specific colors Blue appeals particularly to female consumers Yellow is associated with novelty Black connote sophistication Bright colors like red, yellow and blue used by fast-food restaurants = associated with fast service and inexpensive food Fine dining restaurants use sophisticated colors like gray, white, shades of tan or other pale/muted color to reflect fine leisurely service How consumers see themselves How consumers would like to see themselves

could expand the market to which the product is targeted.

PERCEPTION
Perception

The process by which an individual selects,

Social Self-Image Ideal Social SelfImage organizes, and interprets stimuli into a meaningful and coherent picture of the world

Has strategy implications for marketers

Color combinations in packaging and products

denotes personality Red Green Black Gray Blue Purple Brown Yellow Self and Self-Image

How consumers feel others see them

How consumers would like others to see them

because consumers make decisions based on what they perceive than on the basis of objective reality

How we see the world around us

Sensation

Expected Self-Image

Ought-to

The immediate and direct response of the

sensory organs to stimuli

Self

A stimulus is any unit of input to any of the

senses

How consumers expect Traits/characteristics to see themselves at some specified future consumers believe it is their duty or obligation time to possess

advertisement, product, package, brand name

Sensory receptors are the human organs (eyes,

ears, nose , mouth, skin) that receive sensory inputs, sight, sound, smell, taste or touch

Consumers have a variety of enduring images

of themselves (self-image or perceptions of self)

Human sensitivity refers to the experience of 3. Extended Self. Possessions can extend self in sensation: a number of ways:

These images are associated with personality

in that individuals consumption relates to selfimage

Actually:
to accomplish

Sensitivity to stimuli varies with the quality of

exposed

allowing the person to do things that is difficult of intensity of the stimuli to which he/she is

an individuals sensory receptors and the amount

Tend to buy products or services and patronize

retailers with images/personalities that closely correspond to their own self images The Marketing Concept

Symbolically:
Making the person feel better/bigger

Sensation itself depends on energy change, or

the difference of input

One or multiple selves

Conferring status or rank Bestowing feelings of immortality Endowing with magical powers
4. Altering the Self-image.

Thus, a constant environment (whether very

busy/noisy or relatively quiet) would provide little sensation because of the lack of change the consistent level of stimulation

As sensory input decreases, the ability to

detect changes increases

Marketing Applications of the J.N.D.

This ability of the human organism to

accommodate itself to varying levels of sensitivity as external conditions vary not only protects us from damaging, disruptive, or irrelevant bombardment when the input level is high

Marketers need to determine the relevant

j.n.d. for their products

3. Perceptual Defense. Screening out of stimuli which are threatening or damaging If a stimulus is threatening to us in some way, we may not process it or we may distort its meaning so that its more acceptable

so that negative changes are not readily

discernible to the public apparent to consumers

People dont see what they dont want to see

Perceptual Selection 4. Perceptual Blocking. Consumers avoid being bombarded by tuning out (screening out enormous amounts of advertising/ stimuli) [Organization] Perceptual Organization

but has important implications for marketers

The Study of Sensation

so that product improvements are very

Some Marketing Examples of the J.N.D.

The investigation of the ways in which people

react to the raw sensory information they receive through their sense organs.

less than a JND People do not experience the numerous stimuli When lowering the price for a sale, move more they select from the environment as separate than a JND and discrete sensations Its goal is to analyze peoples raw responses to Sales promotion: Make coupons larger than the Tend to organize stimuli into groups and a stimulus before they: JND perceive them as unified wholes

Pricing: When raising the price, try to move

attend to it comprehend it give it meaning

Product: Make decreases in size of food less

than JND When the word new is used, make sure the product change is greater than the JND

Gestalt psychology (Gestalt in German means

pattern or configuration) is the school of psychology that first developed the basic principles of perceptual organization

Absolute Threshold

Packaging: To update package styling and log,

The absolute threshold is the lowest level at

The point at which a person can detect the

which an individual can experience a sensation difference between something and nothing

Under conditions of constant stimulation, the

absolute threshold increases (the senses become increasingly dulled)

Three basic principles of perceptual keep within the JND organization: To change image, make styling changes greater Figure and ground than the JND Grouping Aspects of Perception Closure Selection Organization Organization Interpretation [Selection] Perceptual Selection

Sensory adaptation: getting used to certain

a problem that causes many advertisers to

sensations, or becoming accustomed to a certain level of stimulation

1. Figure & Sound. People tend to organize perceptions into figure-and-ground The nature of the stimulus (nature of the relationships. change their advertising campaigns regularly product, its physical attributes, package design, The figure is usually perceived clearly brand name, advertising, position of the ad, Differential Threshold The ground is usually perceived as indefinite, editorial environment) hazy, continuous, subordinate Minimal difference that can be detected Contrast is among the most Marketers usually design so the figure is the between two similar stimuli attention-compelling attributes of a noticed stimuli. stimulus (color contrasts, Also known as the just noticeable difference differentiated packaging) 2. Grouping. People group stimuli to form a (the j.n.d.) Consumers previous experience as it affects unified impression or concept or chunks rather their expectations than discrete bits of information The j.n.d. between two stimuli is not an People see what they expect to see, based on Consumers tend to group together objects that absolute amount but an amount relative to the familiarity, previous experience, preconditioned share similar physical characteristics intensity of the first stimulus set of expectations Grouping helps memory and recall Absolute Threshold Consumers motives (needs, desires, interests) Can be used by marketers to imply certain Marketers try to increase sensory input in order People tend to perceive things they need or desired meanings in connection with their want to cut through the daily clutter consumers products experience in the consumption of advertising Perceptual Selection 3. Closure. People have a need for closure and Increase sensory input to cut through the organize perceptions to form a complete Selective Exposure advertising clutter picture. Other advertisers try to attract attention by Selective Attention Will often fill in missing pieces decreasing sensory input (e.g. silence, use of Perceptual Defense unusual media) Incomplete messages remembered more than what they perceive, depending on:

Consumers subconsciously are selective as to

Figure and ground Grouping Closure

Package designers determine consumers

Perceptual Blocking

complete [Interpretation] Perceptual Interpretation

absolute thresholds to make sure that their new product designs will stand out from those of competitors Webers* Law

1. Selective Exposure. Consumers seek out messages which:

Webers law states that the stronger the

initial stimulus, the greater the additional intensity needed for the second stimulus to be Stimuli are often highly ambiguous 2. Selective Attention. Also called perceptual perceived as different vigilance Individuals interpret them in such a way that An additional level of stimulus, equivalent to they serve to fulfill personal needs, wishes and Heightened awareness when stimuli meet their the j.n.d., must be added for the majority of interests needs people to perceive a difference between the resulting stimulus and the initial stimulus How close a persons interpretations are to Consumers prefer different messages and reality depends on the clarity of the stimulus, Holds for all senses and almost all levels of medium the past experiences of the perceiver, and intensity

Are pleasant They can sympathize with Reassure them of good purchases

The interpretation of stimuli is uniquely

individual because it is based on what individuals expect to see in light of their previous experience

his/her motives and interest at the time of the perception Perceptual Distortion

Manufacturer Image Perceived Risk

Positioning

Intrinsic to the product or service

Physical characteristics of the product itself
(size, color, flavor, aroma)

Individuals are subject to influences that tend

to distort their perceptions:

Physical appearances Stereotypes First impressions Jumping to conclusions Halo effect

Interpretation

Establishing a specific image for a brand in the

consumers mind

Extrinsic Cues
Price, packaging, advertising, brand image,
store image, peer pressure Perceived Quality of Services

Product is positioned in relation to competing

brands

Conveys the concept, or meaning, of the

product in terms of how it fulfills a consumer need

Difficult due to characteristics of services

Intangible Variable Perishable Simultaneously Produced and Consumed

Result of successful positioning is a distinctive,

positive brand image Positioning Techniques

Physical Appearances Stereotypes First Impressions Jumping to Conclusions Halo Effect

1. Physical Appearances. Positive attributes of people they know to those who resemble them

Service quality that a customer perceives is a

function of the magnitude and direction of the gap between expected service and the customers assessment of the service actually delivered Price/Quality Relationship

Umbrella Positioning
Creating an overall image of the company
around which many products can be featured individually

Important for model selection Attractive models are more persuasive for

Positioning against Competition Positioning Based on a Specific Benefit

effective depictions of a core product benefit
often include memorable imagery

Perceived product value is the trade-off

between the products perceived benefits (quality) and perceived sacrifice required to acquire it

some products (enhancement products) but not problem-solving products Interpretation 2. Stereotypes. People hold meanings related to stimuli

The perception of price as an indicator of

product quality (e.g., the higher the price, the higher the perceived quality of the product)

Finding an Unowned Position

Finding a niche unfulfilled by other companies

Filling Several Positions

Other studies show that customers rely on A later study found out that consumers use
price and brand to evaluate the prestige of the product but do not generally use these cues when they evaluate the products performance Retail Store Image

Creating several distinct offerings, often in the well-known brand name as a quality indicator
form of different brands to fill several unidentified niches

Tend to carry pictures in their minds of the

meaning of various kinds of stimuli

Stereotypes influence how stimuli are Formed while the

perceived 3. First Impressions. First impressions are lasting perceiver does not know which stimuli are relevant, important, or predictive 4. Jumping to Conclusions. People tend not to listen to all the information before making a conclusion Many jump to conclusions before examining the relevant evidence like hearing the beginning of an ad and drawing the incorrect conclusions

Repositioning
In response to market events (competitors
cutting into market share) To satisfy changing consumer preferences Perceptual Mapping

Retail stores have images of their own that

serve to influence the perceived quality of products they carry and the decisions of consumers as to where to shop

A research technique that enables marketers

to plot graphically consumers perceptions concerning product attributes of specific brands

Enables the marketer to see gaps in the Reference prices used as a basis for
comparison in judging another price

Consumers tend to perceive stores that offer a

small discount on a large number of items (frequency of price advantage) as having lower positioning of all brands in the product class and prices overall than competing stores that offer to identify areas in which consumer needs are larger discounts on a larger discounts on a not being adequately met smaller number of products (magnitude of price Issues in Perceived Price advantage)

Important to put persuasive arguments first in

advertising Interpretation

The width of product assortment also affects

retail store image

Internal: prices retrieved by the consumer from memory 5. Halo Effect. Consumers perceive and evaluate multiple objects based on just one or a External: advertisers use a higher external few dimensions reference price in an ad in which a lower sales price is being offered Used in licensing of names: associating products with a well-known celebrity or designer Acquisition-Transaction Utility name Acquisition utility

The type of product the consumer wishes to

buy influences his/her selection of a retail outlet

conversely, the consumers evaluation of a

product often is influenced by the knowledge of where it was bought.

Important with spokesperson choice

Issues in Consumer Imagery

The consumers perceived economic gain or

loss associated with the purchase

When a second extrinsic cue is available (e.g.

price and store image), perceived quality is sometimes a function of the interaction of both cues on the consumer Manufacturers Image

Consumers have a number of enduring

Product Positioning and Repositioning Positioning of Services Perceived Price Perceived Quality Retail Store Image

Function of product utility and purchase price

Transaction utility perceptions/images and products/ brands have symbolic value for individuals who evaluate The perceived pleasure or displeasure them on the basis of their consistency with their associated with the financial aspect of the personal picture of themselves: purchase

Manufacturers who enjoy a favorable image

generally find that their new products are accepted more readily than those of manufacturers who have a less favorable of even a neutral image

Determined by the difference between the

Perceived Quality of Products

internal reference price and the purchase price

Researchers have found out that consumers

generally have favorable perceptions of pioneer brands (the first in a product category), even after follower brands become available

Consumers often judge the quality of a product

(perceived quality) on the basis of a variety of informational cues:

Perceived Risk

__________________________________

The degree of uncertainty perceived by the

consumer as to the consequences (outcome) of a Learning specific purchase decision Marketers are concerned on how individuals Consumer perception of risk varies, depending learn because they want to teach them about: on: Products The person Product attributes The product Potential consumer benefits The situation The culture Marketers must teach consumers:

LEARNING

The stimuli that give direction to the motives In the marketplace, the following may serve
as cues to help consumers fulfill their needs

High-risk perceivers:

price styling packaging advertising store displays

described as narrow categorizers because they

limit their choices (e.g. product choices) to a few safe alternatives

Low-risk perceivers:
described as broad categorizers because they
tend to make their choices from a much wider range of alternatives Types of Perceived Risk

where to buy their products how to use their products how to maintain their products how to dispose of their products

Serve to direct consumer drives when they are

consistent with their expectations

Response:
How individuals react to a drive or cue; how
they behave

Marketing strategies are based on

communicating with consumers

Marketers want their communication to be:

Noted Believed Remembered Recalled
aspect of the learning process

Not tied to a need in a one-to-one fashion A need/motive may evoke a whole variety of
responses

Functional RiSk:
The risk that the product will not perform as
expected

The response a consumer makes depends

heavily on previous learning that depends on how related responses were reinforced previously

Physical Risk:
The risk to self and others that the product
may pose

Reinforcement:
response will occur in the future as the result of particular cues or stimuli Learning Theories 1. Behavioral Theories

Thus, marketers are very interested in every Increases the likelihood that a specific

Financial Risk:
The risk that the product will not be worth its
cost

Learning- the process by which individuals

acquire the purchase and consumption knowledge and experience that they apply to future related behavior

Social Risk:
The risk that a poor product choice may result
in social embarrassment

Consumer learning is a process, continually

evolving and changing:

Based on observable behaviors (responses) that

occur as the result of exposure to stimuli Sometimes called stimulus-response theories When a person responds in a predictable way to a known stimulus, he/she is said to have learned Most concerned with the inputs and outcomes of learning, not the process 2. Cognitive Theories Learning based on mental information processing Often in response to problem solving Behavioral Learning Theories

as a result of newly acquired knowledge

(gained from reading, discussions, observation, thinking)

Psychological Risk:
The risk that a poor product choice will bruise
the consumers ego

from actual experience

[serve as feedback to the individual and provides the basis for future behavior in similar situations]

Time Risk:
The risk that the time spent in product search
may be wasted if the product does not perform as expected How Consumers Handle Risk (Risk-Reduction Strategies)

The role of experience does not mean that all

learning is deliberately sought.

Though much learning is intentional (acquired

as the result of careful search for information)

Seek Information:
Through word-of-mouth communication, from
salespeople, from the general media

a great deal of learning is also incidental

(acquired by accident or without much effort)

Stay Brand Loyal

Remaining loyal to a brand with which they

Encompasses the total range of learning:

From simple, almost reflexive responses To the learning of abstract concepts and

Classical Conditioning Instrumental or Operant Conditioning Modeling or Observational Learning

Classical Conditioning

Early classical conditioning theorists regarded all organisms as passive recipients have been satisfied instead of purchasing new or complex problem-solving untried brands Conditioning involved building automatic BUT, there is no single, universal theory of how responses to stimuli Select by Brand Image people learn Ivan Pavlov, a Russian physiologist, was the When consumers have no experience with a Elements of first to describe conditioning product, they tend to trust a favored/wellLearning Theories known brand name and to propose it as a general Motivation: model of how learning occurs. He Rely on Store Image used dogs to demonstrate his theories Based on needs and goals If consumers have no other information about a product, they often trust the judgment of the The degree of relevance, or involvement, with A behavioral learning theory according to merchandise buyers of a reputable store the goal, is critical to how motivated the which a stimulus is paired with another stimulus consumer is to search for that elicits a known response that serves to Buy the Most Expensive Model knowledge/information about a product/ service produce the same response when used alone. Consumers may equate price with quality Acts as a spur to learning; Stimulates learning Models of Classical Conditioning * Uncovering consumer motives is one of the Seek Reassurance prime tasks of marketers, who try to teach

Via money-back guarantees, government and

private laboratory test results, warranties, and pre-purchase trial

consumer segments why their product will best fulfill their needs

Cues:

Advertising wearout can be decreased or

avoided by varying the advertising message through: Cosmetic variation Substantive variation

Valuable
to consumers

It often is quite difficult to unseat a brand

leader once stimulus discrimination has occurred

Some disagree about how much repetition is

needed. The three-hit theory states that the optimum number of exposures to an ad is three One to make the consumer aware of the product A second to show consumers the relevance of the product A third to remind them of its benefits

In general, the longer the period of learning

[of associating a brand name with a specific product] the more likely the consumer is to discriminate

and the less likely to generalize the stimulus

Instrumental Conditioning A behavioral theory of learning based on a trialand-error process, with habits forced as the result of rewards or positive experiences (reinforcement) resulting from certain responses or behaviors.

The effectiveness of repetition is somewhat

Classical Conditioning

In a consumer behavior context, an

dependent upon the amount of competitive advertising to which the consumer is exposed As exposure increases, the potential for interference increases 2. Stimulus Generalization. Learning depends also on the ability of individuals to generalize

Like classical conditioning, instrumental

unconditioned stimulus might consist of a wellknown brand symbol that implies products that have certain qualities.

conditioning requires a link between a stimulus and a response

However, in instrumental conditioning, the

stimulus that results in the most satisfactory response is the one that is learned

This previously acquired consumer perception

of the brand is the unconditioned response.

Having the same response to slightly different

stimuli

Conditioned stimuli might consist of new

products bearing the well-known symbol and the .instrumental conditioning is more helpful in conditioned response would be trying these explaining complex, goal-directed activities products because of the belief that they embody Explains why imitative me-too products the same attributes which the brand name is succeed in the marketplace: According to American psychologist, B. F. associated. -consumers confuse them with the Skinner (1904 1990): original product they have seen advertised Cognitive Associative Learning most learning occurs in a controlled Applied by marketers to product line, form, environment in which individuals are Contemporary behavioral scientists view and category extensions: rewarded for choosing an appropriate classical conditioning: Product line extensions: related products to an behavior already established brand as the learning of associations among events Like Pavlov, Skinner developed a model of that allows the organism to anticipate and Product form extensions: includes different learning by working with animals represent its environment. sizes, colors, flavors

Helps me-too products to succeed Useful in product extensions

Although classical conditioning is useful in

explaining how consumers learn very simple kinds of behaviors

rather than being a reflexive action, it is seen Product category extensions: generally target
as cognitive associative learning (the acquisition new market segments of new knowledge about the world). Family branding:

Types of Reinforcement

Positive reinforcement:
Events that strengthen the likelihood of a
specific response

Neo-Pavlovian Conditioning

Optimal conditioning: creation of a strong

association between the conditioned stimulus (CS) and the unconditioned stimulus (US) requires: Forward conditioning (the CS should precede the US) Repeated pairing of the CS and US A CS and US that logically belong together A CS that is novel and unfamiliar A US that is biologically or symbolically salient

The practice of marketing a whole line of Another strategy that capitalizes on the

company products under the same brand name consumers ability to generalize favorable brand associations from one product to the next

Negative reinforcement:
An unpleasant or negative outcome that also
serves to encourage a specific behavior

Retail private branding often achieves the

same effect as family branding

Fear appeals in ad messages are examples of

Licensing:
allowing a well-known brand name to be
affixed to products of another manufacturer

negative reinforcement [Negative reinforcement should not be confused with punishment which is designed to discourage behavior.]

The consumer is an information seeker who

uses logical and perceptual relations among events, along with his/her preconceptions to form a sophisticated representation of the world Strategic Applications of Classical Conditioning

Extinction:

Repetition Stimulus generalization Stimulus discrimination

1. Repetition. Increases the strength of the association between the conditioned and unconditioned stimulus

3. Stimulus Discrimination. This discrimination When a learned response is no longer is the basis of positioning which looks for unique reinforced, it diminishes to the point of ways to fill needs or seeks to establish a unique extinction (the point at which the link between image for a brand in the consumers mind the stimulus and the expected reward is eliminated) -Selection of a specific stimulus from similar Forgetting: stimuli

The key to stimulus discrimination is effective

positioning, a major competitive advantage

The behavior is unlearned because of lack of

use rather than lack of reinforcement

The image, or position, that a product/service

has in the mind of the consumer is critical to its success

Often related to the passage of time; known

Slows the pace/process of forgetting After a certain number of repetitions,

retention declines. This effect is called advertising wearout Repetition and Wearout

Most product differentiation strategies are

Relevant Meaningful

as the process of decay * Marketers can overcoming forgetting through repetition and can combat extinction through the deliberate enhancement of consumer satisfaction. Instrumental Conditioning and Marketing

designed to distinguish a product/brand from that of competitors on the basis of an attribute that is:

Customer Satisfaction (Reinforcement):

Provide the best possible product/service for
the money and

avoid raising consumer expectations for the

product/service beyond what it can deliver

Cognitive Learning Theory

Movement from short-term to long-term

storage depends on

Holds that the kind of learning most characteristic of human beings is problem Aside from the use of the product itself, solving, which enables individuals to gain some consumers can receive reinforcement from other control over their environment. elements in the purchase situation

Relationship marketing (developing a close

relationship with customers) is another form of non-product reinforcement

Not all learning is the result of repeated trials

Learning also takes place as the result of
consumer thinking and problem-solving

Rehearsal Encoding Rehearsal and encoding:

the amount of information available for
delivery from the short-term store to the longterm store depends on the amount of rehearsal an individual gives to it

Reinforcement Schedules:
Total/continuous Systematic/fixed ratio Random/variable ratio:
tends to engender high rates of desired
behavior and are somewhat resistant to extinction (perhaps because, for many consumers, hope springs eternal).

Cognitive learning is based on mental activity

Information Processing

The human mind processes the information it

receives as input much as a computer does consumers cognitive ability and the complexity of the information

Encoding: the process by which we select and

assign a word or visual image to represent a perceived object verbal information

Information processing is related to both the Learning visually takes less time than learning

Shaping:

Individuals differ in imagery their ability to

form mental images which influences recall product category, the greater his/her ability to make use of product information The Structure of Memory

Information overload: when the consumer is

presented with too much information decisions

Reinforcement performed before the desired The more experience a consumer has with a
consumer behavior actually takes place

Result is confusion, leading to poor purchase

Massed vs. Distributed Learning:

Massed:
learning schedule is bunched up all at once produces more initial learning When advertisers want an immediate impact
(introduce a new product or to counter a competitors blitz campaign)

Because information processing occurs in

stages

Retention information is constantly organized

and reorganized as new links of information are forged

it is believed that content is stored in the

memory in separate storehouses for further processing:

Many theorists view the long-term store as a As individuals gain more knowledge, they

network consisting of nodes/concepts with links among them expand their network of relationships, and sometimes their search for additional information This process is known as activation, which involves relating new data to old to make the material more meaningful

Distributed:
learning schedule spread out over a period of
time results in learning that persists longer when the goal is long-term repeat buying on a regular basis A distributed scheduler with ads repeated on a regular basis usually results in more long-term learning and is relatively immune to extinction Observational Learning A process by which individuals observe how others behave in response to certain stimuli and reinforcements. Also known as modeling or vicarious learning. Modeling or Observational Learning

Sensory store Short-term store Long-term store

Information Processing and Memory Stores

A considerable amount of learning takes place

dependent upon how similar or dissimilar presented products are to product categories in the absence of direct reinforcement (positive Sensory store: all data come to us through our already stored in memory or negative) through a process psychologists call senses; however, our senses do not transmit modeling or observational/vicarious learning Consumers recode what they have already information as whole images encoded to include larger amounts of They observe how others behave in response to The separate pieces of information are information (chunking) certain situations (stimuli), the ensuing results synchronized as a single image (reinforcement) that occur, and they imitate The degree of prior knowledge is an important (model) the positively-reinforced behavior when This sensory store holds the image of a consideration faced with similar situations sensory input for just a second or two Knowledgeable consumers can take in more Modeling is the process through which * This suggests that its easy for marketers to get complex chunks of information than those who information into the consumers sensory store, individuals learn behavior by observing the are less knowledgeable in the product category behavior of others and the consequences of such but hard to make a lasting impression Information is stored in long-term memory in 2 behavior Short-term store: if the data survive the ways: Their role models are usually people they sensory store, it is moved to the short-term Episodically: by the order in which it is admire because of such traits as appearance, store accomplishment, skill, and even social class acquired This is our working memory Semantically: according to significant Advertisers recognize the importance of If rehearsal the silent, mental repetition of concepts observational learning in their selection of [memories stored are organized into framematerial takes place, then the data are models, whether celebrities or unknowns. works by which we integrate new data with transferred to the long-term store previous experience] Ads may depict negative consequences for If data are not rehearsed and transferred, Total package of associations brought to mind certain types of behavior they are lost in a few seconds when a cue is activated is called a schema public policy ads showing the negative Long-term store once data are transferred to consequences of smoking, of driving too fast, or Retrieval: the long-term store, they can last days, weeks taking drugs. or even years

How Consumers Store, Retain, and Retrieve Information

Consumers information search is often

the process by which we recover information

from long-term storage

Studies show that consumers tend to

remember the products benefits, rather than its attributes

Elaboration Likelihood Model (ELM)

Suggests that a persons level of involvement

during message processing is the critical factor in determining the most effective route of persuasion

Brand Loyalty

Motivated consumers are likely to spend time

interpreting and elaborating on information they When involvement is high, consumers follow find relevant to their needs and are likely to activate such relevant knowledge from longthe central route and base their attitudes or term memory choices on the message arguments

Function of three groups of influences

Consumer drivers Brand drivers Social drivers

Studies show that incongruent/unexpected

elements pierce consumers perceptual screens:

When involvement is low, they follow the

peripheral route and rely more heavily on other message elements to form attitudes or make product choices

Four types of loyalty

No loyalty Covetous loyalty Inertia loyalty Premium loyalty

improve the memorability of an ad when

these elements are relevant to the advertising

BUT provide no memorability for the product

when these elements are not relevant to the ad

Marketing Applications of ELM

Interference effects:
Caused by confusion with competing ads and
result in a failure to retrieve

For high involvement purchases:

Use arguments stressing the strong, solid, highquality attributes of their products, thus using the central (highly cognitive) route

[reflects a correlation among consumer involvement and the cognitive and behavioral dimensions of brand loyalty]

Loyalty programs:
Generally designed with the intention of
forming and maintaining brand loyalty

Advertisements for competing brands or for

other products made by the same manufacturer can lower the consumers ability to remember advertised brand information

For low involvement purchases:

Use the peripheral route to persuasion,
focusing on the method of presentations rather than on the content of the message [e.g. use of celebrity spokespersons or highly visual and symbolic ads] Brand Equity

2 kinds of interference
New learning can interfere with the retrieval
of previously stored material recently learned material

Refers to the value inherent in a well-known

brand name

Old learning can interfere with the recall of

Issues in Involvement Theory

The best strategy for increasing the personal

relevance of products to consumers is the same as the core of modern marketing: Provide benefits that are important and relevant to consumers Improve the product and add benefits as competition intensifies Focus on forging bonds and relationships with customers rather than just engaging in transactions Measures of Consumer Learning

Value stems from consumers perception of

brand superiority

Consumer Relevance Central and Peripheral Routes to Persuasion Measure of Involvement

Consumer Relevance

Brand equity reflects learned brand loyalty Brand loyalty and brand equity lead to
increased market share and greater profits

Involvement depends on degree of personal

relevance that the product holds for the consumer

Recognition and Recall Measures

Aided Recall (recognition tests) Unaided Recall (recall tests)

High involvement is:

Very important to the consumer
mainly in terms of perceived risk

Cognitive Responses to Advertising

Comprehension: a function of the message
characteristics, the consumers opportunity and ability to process information, and the consumers motivation or level of involvement

Provokes extensive problem solving Finding fewer brands acceptable (narrow

categorizers) Central and Peripheral Routes to Persuasion

Pre-tests and post-tests

Measures of Consumer Learning

Attitudinal and Behavioral Measures of Brand

Loyalty

Central route to persuasion

For high involvement purchases Requires cognitive processing

Attitudinal measures: concerned with

consumers overall feelings/evaluation about the product and the brand, and their purchase intentions

Peripheral route to persuasion

Low involvement Consumer less motivated to think Learning through repetition, visual cues, and
holistic perception

Behavioral measures: based on observable

responses to promotional stimuli (purchase behavior)

direct feedback are beginning to blur the distinction between interpersonal & impersonal communication

Direct marketers (often called database

COMMUNICATION
Communication marketers) also seek individual responses from ads they have placed in all the mass media

Broadcast, print, online as well as from direct

mail The Message

The link between the individual and society The tool that marketers use to persuade
consumers to act in a desired way that have been used for decades are undergoing fundamental changes

Can be a verbal message, spoken or written,

and usually can contain more specific product information than a nonverbal message

Can be a non-verbal message in the form of Today, the media and communication models symbolic communication

Non-verbal communication takes place in

interpersonal channels as well as in impersonal channels Feedback

The transmission of a message from a sender

to a receiver (or channel) of transmission Components of Communication

The transmission of a message from a sender

to a receiver (or channel) of transmission

An essential component of both interpersonal

and impersonal communications

Prompt feedback permits the sender to:

reinforce change modify the message to ensure that it is
understood in the intended way

An essential component is feedback, which

alerts the sender as to whether the intended message was, in fact, received The Sender

The initiator of the communication and can be a:

Formal source: might be the organization
communicating the message

Generally, it is easier to obtain feedback (both

verbal and non-verbal) from interpersonal communications than impersonal communications The Communications Process

Informal source: might be a parent or friend

who gives product information or advice

Informal word-of-mouth communication tends

to be highly persuasive The Receiver

The targeted prospect or a customer There are also intermediary audiences for a
message such as:

Wholesalers, distributors, and retailers who

receive trade

The Message Initiator (the Source) The Sender The Receiver The Medium The Message The Target Audience (the Receivers) Feedback - the Receivers Response
In general, a companys marketing communications are designed to make the consumer:

There are also unintended audiences which

include everyone who is exposed to the message, whether or not they are specifically targeted by the source The Medium

aware of the product give the product a symbolic meaning show how it can solve the consumers problem
better than a competitive product/service The Message Initiator (Source)

The channel/way the message is

communicated

Can be
an impersonal communications channel
e.g. a mass medium like a newspaper of TV
program

The sponsor (initiator) must encode the

message in such a way that its meaning is interpreted by the target audience in precisely the intended way

an interpersonal communications channel

an informal conversation between two friends a formal conversation between a salesperson &
a customer

Encoding can be done through words, pictures,

symbols, spokespersons, and special channels

Publicity is usually the result of public

Mass media are generally classified as:

Print (newspapers, magazines, billboards) Broadcast (radio, television) Electronic (Internet)
The Medium

relations efforts and tends to be more believable because its commercial origins and intent are not readily apparent

The credibility of the source affects the

decoding of the message

New modes of interactive communication that

permit the audiences of mass media to provide

The perceived honesty and objectivity of the

source contributes to his/her credibility

If the source is well-respected and highly

Source credibility judged on past performance, thought of by the intended audience, the reputation, service, quality, spokesperson message is much more likely to be believed, and image, retailers, social responsibility vice versa Institutional advertising used to promote favorable company image Credibility is build on several factors, foremost Not-for-profit sources generally have more of which are the intentions of the source credibility than for-profit sources If the receiver perceives any type of personal Such formal sources as neutral rating services gain for the message sponsor as a result of the or editorial sources have greater credibility than proposed action or advice, the message itself commercial sources becomes suspect Consumers judge commercial source credibility The Message Initiator (Source) on such factors as: Issues with credibility Past performance Credibility of Informal Sources The kind and quality of service Credibility of Formal Sources The quality and image of products offered

The reputation of the retailer who sells the

product has a major influence on message credibility

The reputation of the medium that carries the

advertisement also enhances the credibility of the advertiser

There is no single answer as to which medium

has the most credibility

especially now when new forms of media and

traditional media in new forms are emerging

The consumers previous experience with the

product or the retailer has a major impact on the credibility of the message

Credibility of Spokespersons and Endorsers Message Credibility

1. Credibility of informal sources. o Includes word of mouth

Their position in the community

Credibility of Formal Sources

Firms with well-established reputations

generally have an easier time selling their products than do firms with lesser reputations

Sleeper Effect The idea that both positive and negative credibility effects tend to disappear after a period of time. Effects of Time on Source Credibility

These sources also called opinion leaders Informal sources may not always be credible Built on the perception that the informal
sources (friends, neighbors, relatives) have nothing to gain from their recommendation

A quality image permits a company to

experiment more freely in many more areas of marketing than would otherwise be considered prudent

The persuasive effects of high-credibility

sources do not endure over time

Although a high-credibility source is initially

An opinion leader is an example of an informal

source who profits psychologically, if not tangibly, by providing product information to others

more influential than a low-credibility source, research suggests that both positive and promote a favorable company image rather than negative credibility effects tend to disappear after 6 weeks or so to promote specific products

Institutional advertising is designed to

Firms often engage in cause-related marketing, This phenomenon has been termed the

This ego gratification may actually improve

the quality of the information provided

where they contribute a portion of the revenues sleeper effect = consumers simply forget the source of the message faster than they forget they receive from selling certain products to the message itself causes 3. Credibility of Spokespersons and Endorsers

The sleeper effect is caused by disassociation

over time, leaving just the message content

The fact that the opinion leader does not

receive material gain from the recommended action increases the likelihood that the advice will be seriously considered

Effectiveness related to:

Clever marketers initiate word-of-mouth

(WOM) campaigns

Many firms enlist typical consumers to serve as

their buzz agents

The message the memory of a negative cue simply decays Synergy between endorser and type of product faster than the message itself, leaving behind the primary message content Demographic characteristics of endorser Reintroduction of a similar message by the Corporate credibility source serves to jog the audiences memory, and the original effect remanifests itself Endorsement wording

The theory of differential decay suggests that

Marketers are now more acutely concerned

with negative word-of-mouth that can result in unfounded rumors about products publicity online are called determined detractors WOM:

The spokesperson that gives the product

message is often perceived as the source

i.e. the high-credibility source remains more

persuasive than the low-credibility source The Target Audience (Receivers)

Studies show: Persistent critics of marketers who initiate ad The effectiveness of the spokesperson is
related to the message itself

Receivers decode the messages they receive

on the basis of their personal experience and personal characteristics

Factors motivating consumers to engage in

Consumer involvement with the product or
message

The synergy between the endorser and the

type of product/service advertised is an important factor

Personal characteristics and comprehension:

The amount of meaning derived from the
message is the result of the message characteristics, the receivers opportunity and ability to process the message, and the receivers motivation Personality, attitudes, and prior learning all affect how a message is decoded Perception, based as it is on expectations, motivation, and past experience, certainly influence message interpretation

Endorsers who have demographic

characteristics that are similar to those of the target audience are viewed as more credible/persuasive than those who do not

Self-involvement Alleviating post-purchase uncertainty &

dissonance

The endorsers credibility is not a substitute

for corporate credibility

Seeking information Concern for others

Marketers who use celebrities to give

testimonials/ endorse products must be sure that the specific wording of the endorsement lies within the recognized competence of the spokesperson

Primary motives behind eWOM:

Venting negative feelings Concern for others Extraversion and positive self-enhancement Social benefits Economic incentives Helping the company Advice seeking
2. Credibility of Formal sources. Neutral sources have the greatest credibility

Involvement and congruency

A persons level of involvement determines
how much attention is paid to the message & how carefully it is decoded

In interpersonal communications, consumers

are more likely to be persuaded by salespersons who engender confidence and who give the impression of honesty and integrity 4. Message Credibility

Mood
A consumers mood (cheerfulness,
unhappiness) affects the way in which an ad is perceived, recalled and acted upon Often influenced by the context in which the advertising message appears (e.g. the adjacent TV program or newspaper story) and the content of the ad itself which in turn, affect the consumers evaluation and recall of the message

Credibility of retailers Reputation of the medium that carries the ad Consumers previous experience with product

Barriers to communication may affect the

accuracy with which consumers interpret messages Selective exposure to messages Psychological noise Selective Exposure to Messages

Which consumers received the message

[Data collected via both types of measures are offered for sale by syndicated services]

Message Attention and Interpretation

Physiological measures Theater tests Readership surveys Attitudinal measures

Consumers selectively perceive advertising

messages

Tend to ignore ads that have no special

interest or relevance to them

TV remote controls offer viewers the ability to

wander among program offerings with ease (referred to as grazing)

Message Recall Measures

Day after recall
Physiological Measures

Selective binding possible High quality production High credibility Long message life High pass-along rate Long lead time High clutter Delayed and indirect feedback Rates vary based on circulation and selectivity
Persuasive Capabilities and Limitations of Major Media (Television)

Some marketers try to overcome channel

surfing during commercials by roadblocking (i.e. playing the same commercial simultaneously on competing channels) Psychological Noise

Physiological measures track bodily responses

to stimuli

Sophisticated physiological techniques can be

used to measure the degree of consumer arousal and involvement

Things that impair reception of a message,

such as competing advertising messages or distracting thoughts

but do not assess the reasons behind their

levels of engagement with the messages tested Attitudinal Measures

To overcome psychological noise, a sender can:

Repeat exposure to the message Use contrast Use teasers Use customized ads Shift advertising from TV to internet

Generally, researchers use attitudinal

measures, placed within copy pretests or posttests to assess whether respondents:

The most effective way to ensure that a

promotional message stands out and is received and decoded appropriately by the target audience is through effective positioning and a unique selling proposition Feedback: The Receivers Response

like the message understand it correctly regard it as effective and persuasive

Low costs per contact Long lead time High clutter Short message life Viewers can avoid exposure with zapping, etc. Day-after recall tests for feedback Large audiences possible Appeals to many senses Emotion and attention possible Demonstration possible Very high costs overall
Designing Persuasive Communications

Researchers are also interested in measuring

the emotions and feelings evoked by the ads Designing Persuasive Communications

Message Strategy
The message is the thought idea, attitude,
image or other information that the sender wishes to convey to the intended audience

The ultimate test of marketing communication

is the receivers response Only through feedback can the sender determine if and how well the message has been received

Communications strategy
Must include objectives
The sponsor must first establish the primary
communications objectives such as generating awareness, promoting sales, and encouraging certain practices/behavior

Senders must recognize what they are trying

to say and audiences characteristics so they can encode the message appropriately

Feedback should be gathered:

Promptly Accurately
is the ability to obtain immediate feedback through verbal as well as non-verbal cues Permits rapid adjustment of the message This adaptability is what makes personal selling so effective

Involvement theory
Suggests that individuals are more likely to
devote active cognitive effort to evaluating the pros and cons of a product in a high-involvement purchase situation, and more likely to focus on peripheral message cues in a low-involvement situation Led to ELM (Elaboration Likelihood Model) central and peripheral routes Designing Persuasive Communications

Includes cognitive models

used to describe the communications process

An advantage of interpersonal communication For a long time, the cognitive models were Newer models
Today, other models are gaining popularity One example is a model based on the key

Feedback is also important for impersonal or

mass communication because of its expense The organization that initiates the message needs some method for determining whether its mass communication is: being received by the intended audience understood in the intended way successful in achieving the intended objectives

factors of perception, experience and memory

Media Strategy
Consumer profile
First, the sponsor should develop a consumer
profile of the target market

Audience profile
Next, a medium with an appropriate audience
profile needs to be selected Before selecting a specific medium, the advertiser needs to select a general media category that will enhance the message Once marketers have identified the appropriate media category, they can then choose the specific medium/media in that category that reaches their intended audiences The web is an advertising medium, and using it to communicate effectively with customers is a challenge to marketers Persuasive Capabilities and Limitations of Major Media (Magazines)

Resonance Message framing Comparative advertising Order effects Repetition

1. Resonance. Wordplay

Unlike interpersonal communications, mass

communications feedback is rarely direct; it is usually inferred Receivers buy (or do not buy) the advertised product; they renew (or do not renew) their magazine subscriptions, etc.

Used to create a double meaning when used

with a relevant picture 2. Message Framing. Positive framing: stress the benefits to be gained by using a specific product

Another type of feedback that companies seek

from mass audiences is the degree of consumer satisfaction or dissatisfaction with a product purchase Advertising Effectiveness Research

Negative framing:
stress the benefits to be lost by not using the
product

Media and message exposure measures

How many consumers received the message

Highly selective

One-sided messages: tell consumers only the

good points/benefits effective if audience is friendly, initially favors the communicators position, not likely to hear an opposing argument Two-sided: tell consumers both good points/benefits and bad points/disadvantages effective when the target audience is critical or unfriendly, if well-educated, or likely to hear opposing claims 3. Comparative Advertising. Marketer claims product superiority over another brand (explicitly or implicitly identified) on overall basis or on selected product attributes Useful for: product positioning target market selection brand positioning strategies 4. Order Effects

Emotional appeals are more effective in

persuading less educated audiences Emotional Advertising Appeals Fear Humor Abrasive advertising Sex in advertising Audience participation Impact of Humor on Advertising Humor is more effective with existing products than with new products. Humor attracts attention. Humor is not more effective at increasing persuasion. Humor does not enhance source credibility. Humor enhances liking. Humor that is relevant to the product is superior to humor that is unrelated to the product.

Primacy Recency Order of benefits Brand name

Order Effects

Communications researchers have found that

the order in which a message is presented affects audience receptivity

On television, the position of a commercial in a

commercial pod can be critical Commercials shown first are recalled best, those in the middle the least

Magazine publishers recognize the impact of

order effects by charging more for ads on the front, back and inside covers of magazines than for the inside magazine pages because of their greater visibility and recall

Order is also important in listing product

benefits within an ad If interest is low, the most important point should be made first to attract attention If interest is high, it is not necessary to pique curiosity and so product benefits can be arranged in ascending order

When both favorable and unfavorable

information are to be presented, placing the favorable material first often produces greater tolerance for the unfavorable news It also produces greater acceptance and understanding of the total message 5. Repetition learning

Important factor in

Frequency of the ad affects:

persuasion, ad recall, brand name recall, and
brand preferences Multiple message exposures give consumers more opportunity to: internalize product attributes develop more or stronger cue associations and more positive attitudes increased willingness to resist competitive counter persuasion efforts Advertising Appeals

Factual and emotional appeal effectiveness

varies with the circumstance and the audience

Reason-why appeals are more effective in

persuading educated audiences