1. Chapter 8 Communication and Consumer Behaviour Consumer Behaviour Canadian Edition Schiffman/Kanuk/Das Copyright © 2006 Pearson Education Canada Inc.

2. 8-2 Opening Vignette  What is Mad Cow Disease? -communication is the key to changing attitudes -Communication can be written, verbal, visual or a combination of all three

3. Copyright © 2006 Pearson Education Canada Inc. 8-3 What is Communication? The transmission of a message from a sender to a receiver via a medium of transmission.

4. Copyright © 2006 Pearson Education Canada Inc. 8-4 Elements of the Communications Process The Message Initiator (the Source) The Sender The Receiver The Medium The Message The Target Audience (the Receivers) Feedback - the Receiver’s Response

5. Copyright © 2006 Pearson Education Canada Inc. 8-5 Medium can be: –Impersonal (mass media) –Interpersonal (with salesperson or a friend) –Interactive (direct feedback possibility exists)

6. Copyright © 2006 Pearson Education Canada Inc. 8-6

7. Copyright © 2006 Pearson Education Canada Inc. 8-7 Factors That Affect The Communication Process Characteristics of the source Message characteristics Characteristics of the receiver Characteristics of the medium

8. Copyright © 2006 Pearson Education Canada Inc. 8-8 Issues in Credibility Credibility of Informal Sources –Opinion leaders Credibility of Impersonal, Neutral Sources Credibility of Marketer-Related Sources Credibility of Spokespersons and Endorsers Sleeper Effect

9. Copyright © 2006 Pearson Education Canada Inc. 8-9 Endorser Credibility Is High When Match exists between product attributes and endorser attributes Match exists between demographic characteristics of target audience and endorser The product lies within the competence of the endorser

10. Copyright © 2006 Pearson Education Canada Inc. 8-10 Endorser credibility – Cont’d Endorser credibility is not a substitute for corporate credibility Is important when message comprehension is low

11. Copyright © 2006 Pearson Education Canada Inc. 8-11 Sleeper Effect The idea that both positive and negative credibility effects tend to disappear after a period of time. Differential decay: memory of negative cues disappear faster than the message itself Source is forgotten before the message

12. Copyright © 2006 Pearson Education Canada Inc. 8-12 Message Characteristics Message Credibility –Reputation of the retailer –Consumer’s previous experience with product –Reputation of the medium

13. Copyright © 2006 Pearson Education Canada Inc. 8-13 Message Characteristics- cont’d Message Structure and Presentation –Resonance or wordplay –Message Framing: positive or negative –One-sided versus Two-sided Messages –Comparative Advertising –Order Effects –Repetition

14. Copyright © 2006 Pearson Education Canada Inc. 8-14 Message Characteristics- cont’d Advertising Appeal Used –Factual or Emotional Types of Emotional Appeals –Fear –Humor –Abrasive advertising –Sex in advertising

15. Copyright © 2006 Pearson Education Canada Inc. 8-15

16. Copyright © 2006 Pearson Education Canada Inc. 8-16 Characteristics of the Target Market Demographic Characteristics Involvement and Congruency –central route to persuasion for high involvement products –peripheral route to persuasion for low involvement products Mood

17. Copyright © 2006 Pearson Education Canada Inc. 8-17 Characteristics of the Medium - Newspaper Access to large audiences Effective for local reach Flexible Fast Feedback possible through coupon redemption, etc. Not selective Short message life Clutter Cost varies based on ad size and vehicle circulation

18. Copyright © 2006 Pearson Education Canada Inc. 8-18 Characteristics of the Medium - Magazines Highly selective 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

19. Copyright © 2006 Pearson Education Canada Inc. 8-19 Characteristics of the Medium - Television Large audiences possible Appeals to many senses Emotion and attention possible Demonstration possible Very high costs overall 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

20. Copyright © 2006 Pearson Education Canada Inc. 8-20 Characteristics of the Medium - Radio High geographic and demographic selectivity Short lead time Relatively inexpensive Good local coverage Short exposure time Audio only High clutter Zapping possible Delayed feedback through day-after recall tests

21. Copyright © 2006 Pearson Education Canada Inc. 8-21 Characteristics of the Medium - Internet Potential for audience selectivity Customized tracking possible and other feedback tools possible Useful for branding and reinforcement of messages Demographic skew to audience Very high clutter Zapping possible Great variation in pricing Privacy concerns

22. Copyright © 2006 Pearson Education Canada Inc. 8-22 Characteristics of the Medium – Direct Mail High audience selectivity Personalization possible Novel, interesting stimuli possible Low clutter Perception of junk mail Feedback possible through response High cost per contact

23. Copyright © 2006 Pearson Education Canada Inc. 8-23 Characteristics of the Medium – Direct Marketing Development of databases High audience selectivity Relatively free of clutter Privacy concerns Measurable responses Cost per inquiry, cost per sale, revenue per ad can be calculated

24. Copyright © 2006 Pearson Education Canada Inc. 8-24

25. Copyright © 2006 Pearson Education Canada Inc. 8-25 Barriers to Communication Selective Perception –Wandering, Zapping, Zipping, and Channel Surfing –Combat with Roadblocking Psychological Noise –Combat with repeated exposures, contrast in the copy, and teasers

26. Copyright © 2006 Pearson Education Canada Inc. 8-26 Communication and Marketing Strategy Establish communication objectives Select target audience Choose the best media Develop suitable message strategies –Match message with audience characteristics –Develop suitable message structure, presentation –Develop suitable message appeals Reduce barriers to effective communication Measure effectiveness of marketing communications