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Advertising, Integrated Brand Promotion and Consumer Behavior Marketing 3344 Consumer Behavior Consumer Behavior: a wide spectrum of things that affect, derive from, or form the context of human consumption. Perspectives: 1. Consumers are Systematic Decision Makers  2. Maximizing the benefits from purchases defines the purchase—consumers are deliberate Consumers are Active Interpreters   Cultural/social membership defines purchases Consumers are “meaning makers” in their consumption Consumer DecisionMaking The Consumer as a Systematic Decision Maker The Consumer is:  Logical  Purposeful  Acts in a “sequential” manner in making decisions The Consumer Decisionmaking Process 1. Need recognition  Functional or Emotional benefits 2. Information Search and Evaluation  Internal and External search  Consideration Set  Evaluative Criteria 3. Purchase Does this ad offer a functional or emotional benefit? 4. Post-purchase use and evaluation  Customer satisfaction  Cognitive dissonance Cognitive Dissonance The feelings of doubt and concern after a purchase is made. Dissonance increases when:      The purchase price is high There are many close alternatives The item is intangible (example?) The purchase is important The item purchased lasts a long time Modes of Consumer Decision-Making Vary by Involvement and Experience 1. Involvement  Interests and avocations  Risk—high price or long term commitment  High symbolic meaning to purchase  Deep emotion attached to purchase 2. Experience  More experience, more astute consumer Modes of Consumer Decision-Making Vary by Involvement and Experience 1. Extended Problem Solving  2. Deliberate, careful search Limited Problem Solving  Common products, limited search 3. Habit or Variety Seeking  Variety seeking—switch brands at random  Habit—buy single brand repeatedly 4. Brand Loyalty  Conscious commitment to find same brand every time purchase is made Key Psychological Processes in Advertising 1. Attitude  2. Brand Attitude  3. Over Overall evaluation of an object, person or issue on continuum=like/dislike; positive/negative Summary evaluations that reflect preferences for various products and services Salient Beliefs  Small number of key beliefs. Five to nine salient beliefs typically form the critical determinants of attitude Key Psychological Processes  Multi-Attribute Models (MAAMs)  Evaluative Criteria: attributes consumers use to compare brands  Importance Weights: priority assigned to attributes  Consideration Set: group of brands that are focal point of decision effort  Beliefs: knowledge and feelings consumer has about various brands Key Psychological Processes  Information Processing and Perceptual Defense  Cognitive Consistency Impetus: Strongly held beliefs to  make efficient decisions Advertising Clutter: Large volume of ads causes overload  Selective Attention: Most ads are ignored  Cognitive responses: Thoughts that occur to because they do not fit consumer’s need state consumer at moment when beliefs are challenged by persuasive communication Key Psychological Processes ○ The Elaboration Likelihood Model (ELM)  “Central route” persuasion when involvement is high  “Peripheral route” with peripheral cues rather than strong arguments when involvement is low Perspective Two: The Consumer as Social Being   Perspective One: Portrays the consumer as a decision maker - tells only part of the story. Consumption can be a social and cultural process as well Consuming in the Real World Family Social class Values Object Meaning Rituals Gender Community Geopolitics Culture Race / Ethnicity Reference Groups (membership/aspiration) 13 Advertising, Social Rift and Revolution Advertisers see and seize the opportunity to provide “costumes” and “consumables”  “Revolutions” require a certain “look”  “Looks” signal political/social orientation Advertising as Social Text: How Ads Transmit Socio-cultural Meaning Culturally constituted world Advertising / fashion system Fashion system Consumer goods Possession ritual Exchange ritual Grooming ritual Divestment ritual Individual consumer 15 Factors Affecting Consumer Decision Making VALUES / ATTITUDES REFERENCE GROUPS SITUATIONAL FACTORS CULTURE NEEDS EDUCATION CONSUMER DECISIONS PLEASURE PERSONALITY GENDER FAMILY NEWS MAGAZINES RADIO TELEVISION DIRECT MEDIA BLOGS INTERNET INFO MEDIA MARKETERCONTROLLED STIMULI SOCIAL CLASS PAST EXPERIENCE LIFE-STYLE PRICE PACKAGING ADVERTISING PROMOTION PERSONAL SELLING SUBCULTURES PPT 5-17 16