McGraw-Hill/Irwin Copyright © 2008 by The McGraw-Hill Companies, Inc. All rights reserved.

Chapter 17

Consumer Behavior and

McGraw-Hill/Irwin Copyright © 2008 by The McGraw-Hill Companies, Inc. All rights reserved.
Types of Affective Response

17-3
 Types of Promotion
• Marketers develop promotions to communicate
information about their products and to persuade
consumers to buy them
– Advertising
– Sales promotions
– Personal selling
– Publicity
• Successful products and brands require
promotions to create and maintain a differential
advantage over their competitors

17-4
 Advertising
• Any paid, nonpersonal presentation of
information about a product, brand,
company, or store
– Usually has an identified sponsor
– Characterized as image management
• Creating and maintaining images and meanings in
consumers’ minds
– Ultimate goal is to influence consumer’s
purchase behavior
– May be conveyed via a variety of media

17-5
 Sales Promotion
• Direct inducements to the consumer to
make a purchase
– Difficult to define sales promotions due to many
types
– Key aspect of sales promotions is to “move the
product today, not tomorrow”
– Most sales promotions are oriented at changing
consumers’ immediate purchase behaviors
– Coupons remain the most popular form of sales
promotions

17-6
 Personal Selling
• Direct interactions between a potential
buyer and a salesperson
– What makes it a powerful promotion method?
• May increase consumers’ involvement with the
product and/or decision process
• Interactive communication allows salespeople to
adapt their sales presentation to individual customer
needs

17-7
 Personal Selling cont.
– Certain consumer products are traditionally
promoted through personal selling
– For other businesses, a form of personal selling
by telephone, called telemarketing, has become
popular
– Direct mail has increased in popularity to
counteract increasing restrictions on
telemarketing

17-8
 Publicity
• Any unpaid form of communication about
the marketer’s company, products, or
brands
– Can either be positive or negative
– Can sometimes be more effective than
advertising because consumers may not screen
out the messages so readily
– Publicity can be considered more credible than
advertising as it is not represented by the
marketing organization

17-9
 The Promotion Mix
• Ideally, marketing managers should develop
a coherent overall promotion strategy that
integrates the four types of promotions into
an effective promotion mix
– A controversy continues in marketing about the
relative importance of advertising vs. sales
promotions
– The promotion mix of the future is likely to be
more eclectic with many more options
– Advertising seems to be having a declining
influence on consumers’ behavior due to
various factors
17-10
 A Communication Perspective
• The cognitive processing model of decision
making is relevant to an understanding of
the effects of promotions on consumers
– Consumer’s must be exposed to the promotion
information
– Attend to the promotion communication and
comprehend its meanings
– The resulting knowledge, meaning, and beliefs
must be integrated with other knowledge to
create
• brand attitudes
• make purchase decisions
17-11
A Communication Perspective cont.

17-12
 The Communication Process
• Developing successful promotion strategies
is mainly a communication problem
– Key factors
• Source
• Encode
• Transmit
• Receiver
• Decode
• Action
– Particularly important stages for success
• Encoding
• Decoding
17-13
 Goals of Promotion
Communications
• Goals of promotion communications
– Effects can be ordered in hierarchical sequence
of events or actions that are necessary before
consumers can or will purchase a brand
• Consumers must have a recognized need for the
product category or product form
• Consumers must be aware of the brand

17-14
 Goals of Promotion
Communications cont.
• Consumers must have a favorable brand attitude
• Consumers must have an intention to purchase the
brand
• Consumers must perform various behaviors to
purchase the brand

17-15
 Stimulate Category Need
• Need to create beliefs about the positive
consequences of buying and using the
product category or form
– Marketers need to create beliefs about the
positive consequences of buying and using the
product category or form
– Typically use advertising to stimulate category
need

17-16
 Brand Awareness
• A general communication goal for all
promotion strategies
– Level of brand awareness necessary for
purchase varies depending on how and where
consumers make their purchase decisions
– Ask consumers to state the brand names they
can remember or recognize as familiar
– A company’s brand awareness strategy
depends on how well known the brand is

17-17
 Brand Attitude
• Create a brand attitude
• Maintain existing favorable brand attitudes
• Increase the existing brand attitude
• Cannot analyze consumers’ brand attitudes
in an absolute or very general sense without
specifying the situational context

17-18
 Brand Purchase Intention
• Most promotion strategies are intended by
marketers to increase or maintain the
probability that consumers will buy the
brand
– To develop effective promotion strategies
directed at brand purchase intention, marketers
must know when BI are formed by most of the
target customers

17-19
Brand Purchase Intention cont.
– More typically, formation of a brand BI is
delayed until well after exposure to advertising,
when the consumer is in a purchase context
– Personal selling and sales promotion are
usually designed to influence purchase
intentions at the time of exposure to the
promotion information

17-20
 Facilitate Other Behaviors
• Some promotion strategies are designed to
facilitate behaviors other than purchase
– Sales promotions and publicity are likely to have
little influence on these other behaviors, but
advertising and personal selling strategies may
increase their probability

17-21
 The Promotion Environment
• Includes all stimuli associated with the
physical and social environment in which
consumers experience promotion strategies
• Two environmental factors can influence
advertising and sales promotion strategies
– Promotion clutter
– Level of competition

17-22
 Promotion Clutter
• The growing number of competitive
strategies in the environment
– Possible that clutter created by multiple ads
during commercial breaks and between TV
programs will reduce the communication
effectiveness of each ad
– Also affects other types of promotion strategies,
especially sales promotions

17-23
 Level of Competition
• A key aspect of the promotion environment
– Comparative advertising, featuring direct
comparisons with competitive brands, has
become more common
– Promotion often becomes the key element in
the marketers’ competitive arsenal in fiercely
competitive environments

17-24
 Promotion Affect and Cognition
• Interpretation of promotion communications
and integration processes are extremely
important
• Consumers’ comprehension processes vary
in depth and elaboration, depending on their
levels of knowledge and involvement
– Concepts relevant to understanding the effects
of advertising
• Consumers’ attitudes toward ads
• Persuasion processes

17-25
 Attitude toward the Ad
• The affective evaluations of the ad itself can
influence the attitudes toward the advertised
product or brand
• Ads that consumers like seem to create
more positive brand attitudes and purchase
intentions than ads they don’t like
• A positive attitude toward an ad may not
always lead to increased purchase of the
brand

17-26
 The Persuasion Process
• Changes in beliefs, attitudes, and behavioral
intentions caused by a promotion
communication
– The Elaboration Likelihood Model (ELM)
• Identifies two cognitive processes by which
promotion and communication can persuade
consumers
• Also distinguishes between two types of information
in the promotion communication

17-27
Two Routes to Persuasion in the
ELM

17-28
 Promotion Behaviors
• Different types of promotions can be used to
influence the various behaviors in the
purchase–consumption sequence
– Information contact
– Word-of-mouth communication with other
consumers

17-29
 Information contact
• Consumers must come into contact with
promotion information for it to be successful
– Information contact with promotions may be
• intentional
• most often incidental
– Placing information in consumers’ environments
may be easy when target consumers can be
identified accurately

17-30
 Promotion Behavior cont.
– Cold calls vs. referrals and leads
– Use of telemarketing
– Consumers must also attend to the promotion
messages
– Level of attention also depends on how well
promotion interacts with consumer
characteristics such as intrinsic self-relevance
and exiting knowledge

17-31
 Word-of-Mouth Communication
• Helps spread awareness beyond those
consumers who come into direct contact
with the promotion
– Placing promotion information in consumers’
environments, increases the probability that the
information will be communicated to other
consumers

17-32
 Managing Promotion Strategies
• Four key activities
– Analyze consumer–product relationships
– Determine the promotion objectives and budget
– Design and implement a promotion strategy
– Evaluate the effects of the promotion strategy

17-33
 Analyze Consumer-product
Relationships
• Requires identifying the appropriate target
markets for the product
– Marketers should also understand the deeper
symbolic meaning of their brand
– The FCB grid
• Based on consumers’ involvement and their salient
knowledge, meanings, and beliefs about the product
• Think products
• Feel products
• The appropriate promotion strategy depends on the
product’s position in the grid

17-34
Analyze Consumer-Product
Relationships cont.

17-35
Determine Promotion Objectives and
Budget
• Promotion strategies may be designed to
meet one or more of the following objectives
– To influence behaviors
– To inform
– To transform affective responses
– To remind

17-36
Managing Promotion Strategies cont.
• Marketers should determine their specific
promotion objectives and the budget
available to support them before designing a
promotion strategy
• Some promotions have multiple objectives
• Some promotions are designed to first
influence consumers’ cognitions in
anticipation of a later influence on their overt
behaviors

17-37
Design and Implement a Promotion
Strategy

17-38
 Designing Promotion Strategies
• Must be sensitive to the consumer-product
relationships represented in different market
segments
– Various consumer segments to be considered
– Appropriate promotions depend on the type of
relationship consumers have with the product or
brand, especially their intrinsic self-relevance
– Promotion methods vary in their effectiveness
for achieving certain objectives
– Promotion objectives will change over a
product’s life cycle

17-39
 Developing Advertising Strategy
• Specify advertising strategy in terms of the
type of relationship the consumer will have
with the product or brand
– MECCAS model, based on consumers’ means-
end chains, helps marketers understand the key
aspects of ad strategy and make better strategic
decisions
• Driving force
• Leverage point
• Consumer benefits
• Message elements
• The executional framework part of the creative
strategy

17-40
The MECCAS Model

17-41
Developing Advertising Strategy cont.
– Steps in creating an advertising strategy
• Consumer-product relationship
– Message elements
– Consumer benefits
– The driving force
– Leverage point
• An advertising strategy should specify how a brand
will be connected to the important ends the
consumer wants
– Executional framework: the various details of the creative
strategy
– Marketers still must carefully analyze
consumers and use their creative imaginations
17-42
Developing Personal Selling Strategies
• ISTEA model ( impression, strategy,
transmission, evaluation, and adjustment )
– Suggests salespeople’s influences depend on
their skills at performing five basic activities
• Developing useful impressions of the customer
• Formulating selling strategies based on these
impressions
• Transmitting appropriate messages

17-43
Developing Personal Selling Strategies
cont.
• Evaluating customer reactions to the messages
• Making appropriate adjustments in presentation
should the initial approach fail
– ISTEA model is consistent with the
communication approach to consumer
promotions
– Model emphasizes analysis of the customer as
the starting point

17-44
A Model of the Personal Selling
Process

17-45
 Evaluate Effects of the Promotion
Strategy
• Involves comparing its results with the
objectives
– Determining promotion effects can be difficult
– Promotion objectives stated in behavior terms
can be hard to evaluate
– In some cases, evaluation of promotion effects
can be relatively straight-forward

17-46
 Measuring Advertising Effects
• Wide variety of approaches have been
taken to measuring advertising effects
– Pretesting
– Copy testing
• Three broad criteria used as indicators of
advertising effectiveness:
– Sales
– Recall
– Persuasion

17-47
 Summary
• Discussed how knowledge about
consumers’ affect and cognitions,
behaviors, and environments can be used
by marketers in developing more effective
promotion strategies
• Described four types of promotions
• Detailed how the basic communication
model can be used

17-48
 Summary cont.
• Discussed important aspects of the
promotion environment, affective and
cognitive responses to promotions, and
promotion-related behaviors
• Examined a managerial model for designing
and executing promotion strategies

17-49
 Summary cont.
• Described the various goals and objectives
marketers may have for promotion
strategies
• Looked at two special models for developing
advertising strategies and personal selling
strategies
• Discussed how to evaluate the effectiveness
of promotion strategies

17-50