Communication and Consumer Behavior CHAPTER NINE

Overview 1.Basic communication model 2.The source (Sender) 3.The receiver (target audience) 4.Media (channels for transmitting messages) 5.Designing persuasive communications 6.Advertising appeals 7.Feedback (determining effectiveness of communications) 2Chapter Nine Slide

Which Type of Communication Is Featured in This Ad, and What Strategic Concept Does It Get Across? 3Chapter Nine Slide Nonverbal What does this sign mean: In Egypt: Be patient In Italy: What exactly do you want? (a question) In Greece: That’s just perfect. Advertising messages should be consistent with the culture.

1- Basic Communication Model 4Chapter Nine Slide The source sends a message through a channel to a receiver, most likely the consumer. The model also shows that there is feedback from the receiver which tells the sender whether the message was received.

2- The Source (Sender ) Marketer or organization Formal Source A parent, friend or other consumer Informal Source 55Chapter Nine Slide Informal sources have become of interest to marketers as consumers look for product ratings from other consumers when taking in marketing information.

Informal communications are a two-way process Informal Sources such as friends, neighbors and relatives have a lot of influence on consumers because they appear to have nothing to gain from their recommendations. – Opinion leaders tend to be specialized in the areas in which they offer information and advice. – Word-of-Mouth – e- WOM (electronic word-of-mouth) – Social networks (such as Facebook and Twitter where people share information on products and consumption experiences and advices) – Brand communities (online forums that focus on a particular product or a brand) – Message boards (chat rooms) – Blogs 6 The source Informal communication sources (Opinion leaders and Word of Mouth) 6Chapter Nine Slide

Buzz Agents: Consumers who agreed to promote the products of an organization. They are often encouraged by receiving free samples. Viral Marketing: e.g. forwarding messages to others. Problem: Consumers get so many messages, it is often hard for them to decide which ones are worth forwarding to their friends. Tackling negative rumors: Negative comments, or more dangerously, false rumors are very difficult for marketers to squelch online. Some experts think it is best to ignore the rumors, while other companies tackle them head on with statements and videos from company executives. 7 The Source (Word of Mouth – Strategic Applications) 7Chapter Nine Slide

Institutional advertising: To build their companies’ credibility and image, marketers will use institutional advertising (to promote the company not its products). Publicity: In addition, they will focus on publicity and how they may be perceived by their many markets (publicity is more credible than advertising) Endorsers: use a celebrity endorser (to help their message be more credible). The figure shows how much consumers give credibility to some actors and musicians. 8 The Source (Credibility of Formal Sources) 8Chapter Nine Slide

Why Are Consumers Likely to Perceive This Ad as Credible? 9Chapter Nine Slide A glamorous Celebrity Endorser is More Likely to be Perceived as a Credible Source, Especially for a Hedonistic Product ( e.g. very expensive watch).

Types of Celebrity Appeals 10 Chapter Nine Slide

The source (Credibility of Formal Sources Endorser Effectiveness) Effectiveness is related to the message and its ease of comprehension (understanding) Synergy between the endorser and the product types is important (e.g. cosmetics is endorsed by an attractive celebrity) Endorser’s demographic characteristics (e.g. age and social class) should be similar to the target audience Endorser credibility is not a substitute for corporate credibility Endorser’s words must be realistic 11 Chapter Nine Slide

Vendor Credibility The reputation of the retailers Medium Credibility The credibility of the magazine, website, or radio station Effects of time on source credibility The sleeper effect phenomenon when the consumer does not remember the source credibility because of time 12 Credibility of Formal Sources Other Credibility Sources 12Chapter Nine Slide

3- The Receivers (Target Audience) The receiver must comprehend and decode the message. This differs based on: Personal characteristics (e.g. personality, demographics, social class, lifestyle) and motives. Involvement (how much attention it paid to the message and how carefully it is decoded) Mood (e.g. cheerfulness or unhappiness) Barriers to communication – Selective exposure to messages: Because of the clutter, we are very selective in what we allow ourselves to be exposed to – Psychological noise: happens in the form of consumer’s competing of the advertising messages during a commercial break, hindering consumer’s mind ability to interpret messages correctly. 13Chapter Nine Slide

Overcoming Psychological Noise Repeating exposure to advertising messages Contrast to break through clutter Customized promotion messages Effective positioning Unique Offering and benefits 14 Chapter Nine Slide

Mass Media: transmit the same message to all members of the audience (e.g. newspaper, T.V., radio, and outdoor media) Nontraditional (New) Media (digital technologies such as cell phones and computers) which are often more focused, individualized, and targeted to the audience. Characteristics of new media: 15 Addressable Customized and addressed to particular receivers Interactive Receivers can interact with the sender Response measurable Receiver's response can be measured 15Chapter Nine Slide 4- Media (Channels for transmitting messages)

Nontraditional Media Out-of-home and On-the-go – Advertising screens in buildings and transit vehicles (e.g. taxis, trains and busses) – Digital billboards on roads – Ambient (surrounding) advertising (experiential advertising). Example: Kraft’s warm bus in winter to make consumers feel warm when eating their food. Online and Mobile: Narrowcast messages (versus broadcast) Interactive TV (iTV): Combines TV programming and the interactivity of the Web. ( ) 16 Chapter Nine Slide

5- Designing Persuasive Communications Advertising Resonance Message framing One-Sided versus Two- Sided Messages Order Effects Wordplay Used to create a double meaning when used with a relevant picture, it is more likely that the ad will be noticed and remembered. Message Structure and Presentation 17Copyright 2010 Pearson Education, Inc.Chapter Nine Slide

Which Advertising Technique Is Used in the Ad, and How So? 18 Chapter Nine Slide Resonance

Designing Persuasive Communications Resonance Message framing One-Sided versus Two- Sided Messages Order Effects Positive framing: advertisers will often stress the benefits to be gained by using a product Negative framing: the consumer is shown what they will lose by NOT using the product Message Structure and Presentation 19Chapter Nine Slide

Designing Persuasive Communications Resonance Message framing One-Sided versus Two-Sided Messages Order Effects marketers only present one side of the product, its all benefits, as well as neglecting the competing products benefits In a two-sided message, a marketer might mention the competitor or the risks a consumer might take with his product (more credible). Choosing of them Depends on nature of the audience (e.g. education level) and nature of competition (e.g. advertising campaign). Message Structure and Presentation 20Chapter Nine Slide

Designing Persuasive Communications Resonance Message framing One-Sided versus Two- Sided Messages Order Effects Primacy effect (the first ad in a commercial break) Recency effect (the last ad in a commercial break) Research has shown that for television, the ads shown first are recalled the best. Magazine advertisers know the covers are the best since they are often the only parts of the magazine seen many times by the readers. Order of benefits: If consumers’ interest is low, benefits should come first to attract attention. Brand name: it should come first to enhance brand recall and message persuasiveness Message Structure and Presentation 21Chapter Nine Slide

6- Advertising Appeals Comparative advertising Fear Humor Abrasive (unpleasant or annoying): ad for pharmaceutical companies. Sex Audience participation Timely (tied into political issues or seasonal activities) Celebrities 22 Chapter Nine Slide

Which Two Advertising Appeals Are Shown in This Ad? 23Copyright 2010 Pearson Education, Inc.Chapter Nine Slide Humor and Fear Appeal

7- Feedback (Determining Effectiveness) How many consumers received the message? Exposure effects Was the message received and interpreted correctly? Persuasion effects Did the ads increase sales? Sales effects 24Chapter Nine Slide