1 Brand Decision Process Speaking to the Head and the Heart To acquire, retain, and grow customers, companies need to know how customers make brand decisions. The brand decision can be primarily cognitive or experiential depending on the product category and situation. Brand decision-making is partly rational and partly emotional, so brands must speak to both the head and the heart.

2 Factors That Influence Brand Decisions Three factors influence decision- making: Level of involvement (high to low) Customers (retention) versus Prospects (acquisition) Consumers versus Businesses

3 The Head to Heart Decision-making Continuum

4 Three Approaches to Making a Brand Decision

5 Relationship Between Decision-making and Involvement

6 Basic Brand Decision-making Steps Step 1: Problem and Opportunity Recognition Step 2: Information Search Step 3: Evaluation of Choices Step 4: Behavior and Action Step 5: Review of Buying Decision

7 Step 1: Problem and Opportunity Recognition What are the needs and wants? Before brand messages can influence customers or prospects, brand messages must first get the attention of these customers and prospects. Selective perception is the process used to decide what is worthy of attention.

8 Maslow’s Hierarchy of Needs

9 Safety and Security Needs We often see marketers use the safety need of Maslow’s Hierarchy of Needs in automobile ads.

10 Safety and Security Needs In this ad, Mercedes-Benz is positioning a luxury car on the Safety Appeal.

11 Social Needs-Example

12 Esteem Need

13 Self Actualization

14 Step 2: Information Search During the search for information, customers usually focus on the differences they perceive among competing brands. Brand awareness and brand knowledge are crucial here. Research shows that when customers see marketing communication that is relevant to them, they are more likely to pay attention and think about it. Two routes used in information searching: Central Route Peripheral Route

15 Step 3: Evaluation of Choices – Cognitive Responses A cognitive response involves reasoning, judgment, or knowledge. For both consumers and businesses, using an evoked set of brands in frequently purchased product categories can greatly simplify the process. Six risks both consumers and businesses try to minimize: Financial risk Performance risk Physical risk Psychological risk Social risk Time-loss risk

16 Step 3: Evaluation of Choices – Affective Responses An affective response involves emotional processing and results in preferring (or not preferring) a brand and developing a conviction about it.

17 Attitude Dimensions

18 Step 4: Behavior and Action Attitudes and behavior are linked, however the links are not always direct or clear. People act according to their attitudes and beliefs, as well as what they know.

19 Step 5: Review of Buying Decision Customers evaluate purchases consciously or subconsciously and arrive at some level of satisfaction. This leads to either a repeat purchase or a return to a search for a different brand. The review process involves learning. Two theories of learning: Cognitive Learning Conditioned Learning

20 Persuasion: Hierarchy-of-Effects-Models Persuasion is the act of creating changes in beliefs, attitudes, and behaviors. A classic persuasion model is AIDA.

21 Think Feel/Do Model

22 The Response Wheel

23 Persuading People to Persuade Themselves Marketing communication is a type of intervention in a customer’s brand decision process. The intervention works only if the planner truly understands the customer’s relationship to the brand. From an IMC perspective, communication that helps customers and responds to them in a personal way is much more persuasive than communication that tries to manipulate them.