Communication and Consumer Behaviour

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1 Study Unit 4 -Topic 2 Communication and Consumer Behaviour Introduction In this presentation, you will learn: How sources of communication are viewed by target audience? The role of media in communication and how to create effective communication

2 Basic Communication Model Source Message Channel Receiver The Source as the Initiator Formal Communication Source Marketer or organisation Informal Source A parent, friend or other consumers Social Networks Clubs, associations, internet blogs, web forums

3 Source Credibility Discerning consumers consider source credibility very seriously Reference Groups are deemed to be high on credibility as they help define the individual Normative (family and friends) Comparative (colleagues) Membership Symbolic (take on the values of a non in-group) The Source Informal Sources Opinion leaders Word of Mouth and ewom Two-way communication Social networks Brand communities Message boards and Blogs Strategic applications of WOM Buzz Agents Viral Marketing Tackling negative rumors

4 Credibility of Formal Sources - Endorser Effectiveness Related to the message and its ease of comprehension Synergy between endorser and product types Similarity between endorser s demographic characteristics and the target Endorser credibility is not a substitute for corporate credibility Endorser s words must be realistic for them Credibility of Formal Sources - Other Credibility Sources Vendor Credibility The reputation of the retailers Medium Credibility The credibility of the magazine, website, or radio station, etc. Effects of Time The sleeper effect a phenomenon where the consumer does not remember the source

5 The Receivers as the Target Audience Personal characteristics and motives Involvement and congruency Mood Barriers to communication Selective exposure to messages Psychological noise The Receivers as the Target Audience Repeat exposure to advertising messages Contrast to break through clutter Customisedpromotion messages Effective positioning Offer unique value propositions

6 Media (Channel) Mass Media Must be congruent with message It can be a form of branded entertainment Nontraditional (New) Media is: Addressable Customised and addressed to different receivers Interactive Receivers can interact with the sender Response Measurable Receiver's response can be measured Designing Persuasive Communications Message Structure and Presentation Resonance Wordplay to create a double meaning when used with a relevant visual Message Framing Positive Framing Negative Framing One-Sided versus Two- Sided Messages Depends on nature of the audience and nature of competition Order Effects Primacy (former) Recency(latter) Order of benefits Brand name

7 Advertising Appeals Comparative Fear Humour Abrasive Sex Audience Participation Timely Celebrities Power Duty Status Stimulation Which appeals work best for you? Feedback - Determining Effectiveness Exposure effects How many consumers received the message? Persuasion effects Was the message received and interpreted correctly? Sales effects Did the ads increase sales?

8 Feedback Tools - Determining Effectiveness Exposure People-metres Message attention, interpretation, and recall Physiological measures Attitudinal measures Recall and recognition measures Summary In this presentation you have learned: The five components of communication are: the sender, the receiver, the medium, the message, and feedback.

9 Reflection Question You are the marketing vice-president for a large soft drink company. Your company s advertising agency is in the process of negotiating a contract to employ a superstar female singer to promote your product. Discuss the reference group factors that you would raise before the celebrity is hired.