Public service advertising

Public Service advertisements (as the name goes) are

meant for public interest as opposed to commercial
advertisements for products or services advertised “to
sell”. PSAs are intended to modify public attitudes by
raising awareness about specific issues. The
main objective behind Public Service Advertising is to
spread social consciousness among the masses and
promote important social issues which generally go
unnoticed. Such advertisements may range from being
subtle to direct, and practical to ironic.
PSA Today
Today, Public Service Advertising has become very
popular and is considered to be one of the most effective
means to create social awareness and bring about a
change / shift in the mindsets of people.
The most common topics of PSAs are health and safety.
Health, conservation and safety themes are prevalent in
many PSAs. A typical PSA is part of a public
awareness campaign to inform or educate the public
about an issue such as smoking or compulsive gambling.
Some of the issues discussed through Public Service
Advertising campaigns over the years include –

Blood Donation
Importance of Going to School
AIDS Awareness
Right To Vote
Save Electricity, Save the Planet for Our Children
Polio Eradication
Eve Teasing
Anti Smoking Campaign
Respect for National Anthem
Family Planning
National Integration
Public service advertising campaigns are widespread around the
world. Such advertising is generally produced and distributed on
a cooperative basis by governmental agencies or nonprofit
organizations acting in concert with private advertising and mass
media companies.
PSA ads.
Some PSA ads use celebrity spokespersons to garner
attention. Others attempt to appeal to the masses through
portraying risks and issues relevant to ordinary men, women
and children. A common misconception about public service
advertising is that it includes political campaign ads, which
are actually privately funded.
PSA ads. (cont.)
In most cases, the nonprofit organisation provides the
programming that is to be advertised, while the participating
advertising agency and media companies provide creative
services, media planning, and dissemination services on a pro
bono (done for public good/ unpaid) basis.
PSA ads. (cont.)
Non-profit groups and government agencies commonly
team up with private mass media, promotion and
advertising firms to produce spots for radio, television
and print media. Most commonly, the non-profit agency
creates the message and an advertising firm develops the
campaign, polishes it to meet industry standards and
plans its distribution, all free of charge. Television and
radio stations usually broadcast these ads at no charge,
and magazines and newspapers customarily publish them
for free as well.
 Effective PSAs

When it comes to effective Public Service Advertising, it is

essential to keep the target audience in mind while creating
the social message. A thorough understanding of the target
group further improves the impact of the message being
delivered.
Public Service Advertisements should carry a short message
which is to the point. Such messages can be dramatic and
should ideally stand out from the clutter of all other
advertisements.
Advocacy Advertising
`Advocacy Advertising’ promotes the view point of
the sponsor or the company’s outlook on various issues.

Targets: Specific / Limited

General / Public

Done by: For profit Organizations and Non Profit

Organizations..
 Advocacy Ads Vs. Normal Ads

Both include contents about company and its products,

focuses on promoting sales

But …
Advocacy ads are driven by `Word Of Mouth’
publicity, democratic public involvement and expert
opinions and in turn bring ideas to the public.
 Driving Factors
Belonging
Relationship
Accomplishment
Fun
Excitement
Respect / Self Respect
Security and Fulfillment.
 Ad Advocacy Tools and Techniques

REFERRAL PROGRAMS: Spreading a positive word of

mouth through a satisfied customer.
E.g.. Movie Reviews

TRYVERTISING: Depends on trial experiences of

prompt users.
E.g.. Harpic Ad

EMPOWERED INVOLVEMENT: AN approach where

customers are involved in the making, packing and
promoting the product.
E.g.. Lijjat Papad
 BRAND AMBASSADORS: Companies rely on charisma of
celebrities.

 CAUSAL CAMPAIGNS: lends a helping hand to a social

cause
E.g.. Polio Ad

 INFLUENCER OUTREACH: rely on expert opinions and

their product reviews.
E.g..TATA Nano

 ADVOCACY TRACKING & INNOVATION: It’s a

feedback mechanism where the company collect customer
feedback and improve upon their product.
 Negative Effects of bad Advocacy

Advocacy being a great tool needs to be used in the right

manner….

Positive Advocacy leads to positive returns and a Negative

Advocacy leads to 10 times large negative consequances.
Social Advertising
Introduction

• Social media advertising has become a critical

component for businesses that want to grow
• Harvard Business Review states that 79% of companies
surveyed are using or planning on using social media
– 58% are currently using
– 21% are preparing to use
• This likely includes your competitors
 B2B Trends

What are your top three priorities for digital marketing in

2015?
• Content Marketing – 68%
• Social Media Marketing – 45%
• Brand and Website – 36%

FAIRFAX COUNTY
Source: Forrester/DMN ECONOMIC DEVELOPMENT AUTHORITY
 B2B Trends
Top Social Media Channels B2B Marketers Are Using
• LinkedIn – 94%
• Twitter – 88%
• Facebook – 84%

Effectiveness Ratings
• LinkedIn – 63%
• Twitter – 55%
• Facebook – 48%

FAIRFAX COUNTY
Source: Content Marketing Institute ECONOMIC DEVELOPMENT AUTHORITY
Why it’s a good idea for you

• People spending more time online on mobile devices

than desktops = checking social media multiple times a
day
• Set your own budget
• Advanced targeting
• See what’s happening in real-time
“LinkedIn Ads should be considered an essential
tool for any B2B marketer.”

- Intelliworks (22% of their qualified leads came

from LinkedIn)
Businesses that can benefit from LinkedIn

• B2B
• Small businesses

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“Promoted Tweets were far and away the winner in
terms of driving the most downloads at an
affordable cost.”

- BuzzStream
Twitter
Pro Con
• Unique targeting options • 140 characters to sell yourself
• Many goal options – you only • Frequency of information =
pay if someone performs the clutter
action you want

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ECONOMIC DEVELOPMENT AUTHORITY
Businesses that can benefit from Twitter

• B2B
• Information/communication

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ECONOMIC DEVELOPMENT AUTHORITY
“We were able to reach people in
market for a new vehicle on
Facebook prior to purchase.”

- Hyundai Motor America

Facebook
Pro Con

• Largest audience – 1 billion+ • Frequent monitoring of

users comments on your ads
• Advanced targeting options • Limited ad copy
• Cost effective • Rules around images in your
• Higher click-thru rates than ads
other social sites (on average)

FAIRFAX COUNTY
ECONOMIC DEVELOPMENT AUTHORITY
Businesses that can benefit from Facebook

• Many different businesses can benefit from Facebook

advertising, especially those that can tap into the use of
images:
– Photography
– Retail/crafts
– Travel
– Food/Drink

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ECONOMIC DEVELOPMENT AUTHORITY
Next Steps
• Decide on a budget for a test
• Consider doing a 3- to 4-week test on each site to see
what works best for your business
• Refer to your goals and target audiences when setting
up the campaign
• Don’t forget to try different ad variations to gauge
response
• Monitor the campaign closely (especially for comments)
 ADVERTISING-
SOCIAL,LEGAL,ETHICAL &
ECONOMICAL ASPECTS
 Social aspects of advertising
Advertising as a part of firm’s marketing effort operates in the society.
It has to therefore follow the social norms.

Key areas of debate regarding society and advertising are:

 Deception
 Manipulation
 Taste
Social aspects of advertising
Deception: it refers not only to the information content in
advertising but may also arise from misplace emphasis in
presentations.

According to federal trade commission of the USA-

“Advertising as a whole must not create a misleading

impression although every statement, separately
considered, may be literally truthful”
Social aspects of advertising
Manipulation :-The freedom of choice of consumers is
restricted by the power of advertising since it can
manipulate buyers into making a decision against their
will or interest.

Manipulation is done through emotional appeals. These

companies can utilize advanced and very scientific
advertising techniques and thus make an impression on
consumers.
Social aspects of advertising
Taste:- Sometimes ads are offensive, tasteless, irritating, boring
and so on.
a) Sources of distaste
b) Sexual Appeals
c) Shock advertising
Social aspects of advertising
Some examples of the Advertisements with social aspects:-
 Grow-more-trees advertisements
 Drink milk
 Eat healthy food, eat eggs
 Mother’s milk is best for the baby
 Say no to drugs every time
 Get your child vaccinations in times
Legal aspects of advertising
The government in each country has to make sure that
advertisements appearing do not flaunt of their rules &
regulations.
It should not:-
 show anti-national feelings
 contain misleading information about the product
 Violate government rules
Legal aspects of advertising
Some examples of the Advertisements with legal aspects:-
 Get your car checked for pollution
 Drinks & driving do not mix
 Weight, price, manufacturing date, date of expiry should be
mentioned on the packing case
Ethical aspects of advertising
Ethics are the moral standards against which behavior is
judged

Key areas of debate regarding ethics and advertising are:

Truth in advertising
Advertising to children
Advertising controversial products
Ethical aspects of advertising
Truth in Advertising
Deception is making false or misleading statements.
Puffery (commercial exaggeration) is legal.
Cannot legislate against emotional appeals
Ethical aspects of advertising
Advertising to Children—Issues
Advertising promotes superficiality and materialism in children.
Children are inexperienced and easy prey.
Persuasion to children creates child-parent conflicts.
What does the literature say about kid’s abilities to process
persuasive information?
Ethical aspects of advertising
Advertising Controversial Products
Critics question the “targeting” of minorities.
Tobacco, alcohol, gambling and lotteries are product categories of
greatest concern.
How does the concept of “primary demand” provide insights
here?
What does the literature say about advertising’s impact on these
product categories?
Economic aspects of advertising
Making Consumers Aware of Products and Services

Providing Consumers With Information to Use to Make

Purchase Decisions

Encouraging Consumption and Fostering Economic Growth

Economic aspects of advertising
Effects on Consumer Choice
 Differentiation
 Brand Loyalty
Effects on Competition
 Barriers to entry
 Economies of scale
Effects on product costs and prices
 Advertising as an expense that increases the cost of products
 Increased differentiation
Advertising & Sales Promotion

‘Regulations in Advertising’
 What is Advertising?

“Advertising is the non-personal communication of

information usually paid for and usually persuasive
in nature about products, services or ideas by
identified sponsors through the various media.”
- Bovee
 What are Advertising Regulations?

Advertising regulation refers to the laws and rules

defining the ways in which products can be
advertised in a particular region.
"Advertising is a non-moral force, like electricity, which not only
illuminates but electrocutes. Its worth to civilization depends
upon how it is used."

(J. Walter Thompson)

The namesake & Founder of the JWT advertising agency
- Advertising has been in the vortex of controversy of the many ills
that it brings to society

- It is accused of encouraging materialism and manipulating our

behaviour generally contributing to the downfall of our social
system.

Hence, there comes a need for regulatory bodies

 Purpose

The purpose of the regulatory bodies would be to make

sure that advertisers and advertisements are -

- Truthful and fair to consumers and competitors.

- Within the bounds of generally accepted standards of

public decency.

- Not used indiscriminately for the promotion of products,

hazardous or harmful to society or to individuals
particularly minors, to a degree unacceptable to society
at large.
Advertising Regulatory Bodies Around the World

Some of the well known regulatory bodies are-

Advertising Standards Council of India (ASCI)

Federal Trade Commission for United States

Advertising Standards Authority (ASA) for United Kingdom

Advertising Standards Authority ASA) for South Africa

(ASCI)
-Was set up in 1985

-The Advertising Agencies Association of

India, the media owner's association and the
Indian Newspapers Society, came together
and took the initiative to form the ASCI (the
council)

- The council was voluntary and self-

regulatory, registered as a non-profit
Company .
 Composition of ASCI

The Council is managed by a Board of Governors

consisting of 16 elected members, constituted as follows:

- 4 from Advertisers
- 4 from Advertising Agencies
- 4 from Media and
- 4 from Allied Professions like outdoor contractors, audio-
visual producers/distributors, consumer researchers,
printers, etc.
Objectives
The objectives of ASCI are to make sure advertisers and
advertisements are-

- Truthful and Honest

- Not offensive
- Not hazardous to society
- Fair with competitors

The Complaints the ASCI receives are handled by

Consumer Complaints Council (CCC)
CONSUMER COMPLAINTS COUNCIL (CCC)
 Birth and composition of CCC
The ASCI’s Board of Governors set up a Consumer Complaints
Council (CCC) to examine complaints received by the ASCI.

The composition of the CCC is as follows:

9 from within the advertising industry representing advertisers,
advertising agencies, media owners and allied professions.
12 from society at large, consisting of eminent consumer activists,
educationists, prominent journalists, lawyers, engineers, doctors,
etc
Receiving
complaints

- For public awareness sake, from time-to-time the Council puts out
advertisements in newspapers

- This invites them to complain to the Council

Each year the Council receives approximately 150 complaints.

- 50 % Upheld
- 80% Voluntarily modified/withdrawn
This is one of the ads of ASCI encouraging people to complaint against ads making false claims!
Complaining
Procedures
 Online and Offline complaining
Who can Complaint?

ANYONE!

There are two ways of complaining to CCC. They are through

- Online and
- Printed form

The form can be downloaded from,

ASCI’s Official Website - http://www.ascionline.org/
Online Complaint Form
 Printed Form

This is the form that

has to be filled and
sent to ASCI
CASE STUDIES
Case Studies: Case 1
Decision in favor of complainant
Brand- Bajaj Pulsar

Complaint-Visuals had bikers doing extreme stunts but the

disclaimer was almost invisible. So complaint was filed keeping in
consideration of the recent bike stunt mishaps.

CCC said that- This shows dangerous stunts without having a regard
for safety and hence some action should be taken by the brand.

Result- Ad was modified with a clear disclaimer in the beginning

itself.
Case Studies: Case 2
Decision in favor of complainant
Brand- AXE Dark Temptation Deodorant

Complaint- Ad is in bad taste and is vulgar, as it shows the girls

licking and biting the boy. The scene of the girl biting his
backside is highly objectionable.

CCC said that- The Visuals were indecent and likely to cause
grave or widespread offence.

Result- Ad was modified by deleting a few scenes

Case Studies: Case 3
Decision in favor of complainant
Brand- KFC

Complaint- Car crashes after driver loses concentration while eating KFC
product. Showing eating while driving a car, is promoting an unsafe practice.
The words "non stop khao, non stop khilao", in conjunction with the Ad being
of KFC bucket size pack, is clear intention of advertiser promoting
over/excessive consumption of KFC, which being fried chicken has high
content of fat in it.

CCC said that- Visual depiction of the “driver licking his finger” implied that he
has been eating whilst driving, which could result in harm to the
driver/passengers. Ad shows a dangerous practice without justifiable reason

Result- Ad was modified

Case Studies: Case 4
Decision in favor of advertiser
Brand- MOTOROLA

Complaint- A father telling his son to be responsible and not to litter the
house. The son who is shown having a mobile phone (Motoyuva model)
with earphones just keeps staring at his father and increases the voice of
the music on the mobile hone therby making the voice of this father
fading. Ad conveys the message that it is cool for today’s youth to just
ignore what their elders are telling them.

CCC said that- The “behaviour of the son ignoring his father”, as shown
in the Ad, was not likely to cause grave or widespread offence.

Result- Complaint Not Valid

Case Studies: Case 5
Decision in favor of advertiser
Brand- BIG BAZAAR

Complaint- Print ad has the tagline- “Is se sasta aur

accha kahin nahi!”. According to the Complainant, there are items
available outside, which are cheaper than what Big Bazaar claims.

CCC said that- Claim misleading by exaggeration.

Result- The Advertiser provided comparative bills of Big Bazaar

and other stores, which proved that on a basket of commodities,
they are cheaper. So no changes to the ad was made.
BIG BAZAAR- Print ad
Advertising
Regulatory
Body In
USA

Federal
Trade
Commission
(FTC)
Comparing FTC with ASCI
ASCI is a non- profit organization while FTC is a government organization

FTC collects complaints about companies, business practices, and identity theft
while ASCI only concern advertising.

The FTC enters all complaints it receives into Consumer Sentinel, a secure online
database that is used by thousands of civil and criminal law enforcement
authorities worldwide. This is not the process in ASCI as it is not govt and hence
can’t and doesn’t involve law enforcement authorities and also they receive very
less complaints.
FTC Complaint lodging process- Long and
complex as compared to ASCI
 Conclusion

ASCI home page says- Regulate yourself, or someone else will.

Self-regulation is the most advised way to stay out of unwanted troubles.

In India, self regulation is quite high considering the low complaints.

Also, when complaints are filed at ASCI, there is a high chance that the
brand image may get damaged. So, its high time that advertisers think
twice before spending lakhs and crores on an advertisement.
Client Agency Relationship
Client Agency Relationship
Business relationships assume a prominent role in the strategy of
leading firms, large and small. Successful business partnerships are
built on trust, confidence, understanding, and mutual success.
These relationships require a pro- active effort to sustain and are
critical to future growth.
From the point of view of agency, client turnover affects the image of
agency .Its business is affected in a negative manner. The client is
also affected when it switches over to other agency will take some
time in understanding the inherent qualities of its product , level
of competition , its competitor’s strategy , nature of its
customers, etc.
Client Agency Relationship
Client agency relationship can be issued under the following
headings:
Principles of effective client agency relationship.
Reasons of client turnover.
How agencies get clients?
How can client-agency relationship be improved?
Client-agency relationships are one of the most
complexes in the business environment, requiring a
substantial level of collaboration to be effective.
 Principles For Good Client Agency
Relationship
1). Agency and the Clients:Advertising agency is known for selling
professional services to the clients. There cannot be any hard and fast rules for
arriving at working agreement between the two because each DVERTISING
agency and its clients are unique working under their own set of circumstances
and conditions.
a). Commitment:Every advertiser expects that the agency he engages refrains
from accepting advertising work for his competitors. It is equally true that the
advertiser shall not engage any other agency without the prior consent of the
agency.
b). Prior Approval:The advertising agency is to get the prior approval for all
the advertising work on the basis of client feedback and for all the expenses
connected with the advertising. It is of crucial importance because; it is a
matter of money spending and commitment.
 Principles For Good Client Agency
Relationship
c).Payment: In accordance with the agency contract with the media, the
client is to pay the agency at the media’s published rates and the agency, has the
right to retain its commission allowed by the media. Any concession extended
by the media is to be passed on to the client.
d). Mutual Trust and Confidence:There should be an attitude of mutual
confidence and trust. The agency should be allowed to participate in panning
and there should be no interference in its executive. The company should have
the freedom to contribute creative ideas to the agency and the later should
accept them with due changes and considerations.
 Definitions
Agency relationship is one of the most complex forms of business assoc
iations. They are in need of a good cooperation to be effective and achi
eve sufficient outcomes for both sides. Its hard headed, resultorined
marrige intended to produce specific, measureable results.
Agency Client Relationship are not just a mystique they can be very
costly as well.

 The client agency relationship is the state of interaction between an

organization and the public relations firm it hires to represent it.

 The client agency relationship is a dynamic decision- making process

in which the participants identify, evaluate, and choose
appropriate communication strategies and alternatives.
 It is a dynamic evaluation process, in which agency and
client learn about each other’s strengths and weaknesses,
preferences, and prejudices.
Benefits of Using an Advertising
Agency
Added Expertise
Media Knowledge and Unbiased Advice
Easier Administration
Media Buying
Quality Control
Information
Fending off the media
And when things go wrong
Cost Saving
Time Saving
 Factors Contributing to Effective Client
Agency Relationship
1).Not to Advertise for Immediate Competitive Unit
2).Prompt Payment
3).Passing Down Cash Discounts to Clients
4). Not to Blame Agency for Media
5). Good Services
6). Written Agreement
7). Frequent Contacts between Agency and Client:
Client Agency Relationship
Reasons of Client Turnover
Poor Quality of Services: If the client becomes
dissatisfied with the quality of advertising or marketing
services provided by the agency, then it may leave the
existing agency and look for another agency which provides
better services.

Frequent Personnel Changes in Staff: Clients

sometimes switches over to new agencies when the creative
team of exiting agency or key employess of exiting agency
moves out to another agency.
Reasons of Client Turnover
Lack of Coordination: sometimes, the company key
officials an the agency personnel find it very difficult to
have the working report warranting a kind of compromise or
give and take. If both the parties are adamant on their issues,
the relations break down for the worst and the best of their
interests.
Dearth of Confidence: When the client loses the
confidence of his agency in the delicate area, of say,
competence, fairness in dealings, treatment and the like,
causing tearing away of the relations.
Reasons of Client Turnover
Change for the sake of change: When change becomes the
essence of life. Man goes on changing simply for the sake of
change. According to such clients, change result better results. It
may not always be the case.
Non-availability of services: If the present agency cannot
render the services required by the client, there is no escape from
joining another that extends these much desired services.
Personal Conflict: Sometimes client and agency perceive the
ad-campaign in a drastically different manner. Persons working as
top executives of client and agency may have conflict regarding
any decision of advertising campaign like copy writing, copy
designing, selection of models, selection of media, media
scheduling etc. It may result in client leaving agency.
Conclusion
In today’s world which is fast moving & dynamic, people’s
wants, need and desires are changing; it’s very important to
know them and give them what they want. This is the main
objective of advertising where ad agency plays major role in
market research, making of creative, launching it in the
market, taking the feedback of consumer and making any
product famous and acceptable among consumers. Ad
agencies are playing an important role in shaping present and
future of not just selected brand but of entire company.
Consumer Behavior Model
Model of Consumer Behavior

Consumer buyer behavior refers to the buying

behavior of final consumers—individuals and
households who buy goods and services for personal
consumption

Consumer market refers to all of the personal

consumption of final consumers
Model of Consumer Behavior
Marketing stimuli consists of Other stimuli include:
the 4 Ps • Economic forces

• Product • Technological forces

• Price • Political forces

• Place • Cultural forces

• Promotion
Characteristics Affecting Consumer
Behavior
• Cultural Factors • Social Factors
• Buyer’s culture • Reference groups
• Buyer’s subculture • Family
• Buyer’s social class • Roles and status
Characteristics Affecting Consumer
Behavior
• Personal Factors • Psychological Factors
• Age and life-cycle stage • Motivation
• Occupation • Perception
• Economic situation • Learning
• Lifestyle • Beliefs and attitudes
• Personality and self-
concept
Characteristics Affecting Consumer
Behavior

Culture is the learned values, perceptions, wants,

and behavior from family and other important
institutions
Characteristics Affecting Consumer
Behavior

Subculture are groups of people within a culture

with shared value systems based on common life
experiences and situations
• Hispanic
• African American
• Asian
• Mature consumers
Characteristics Affecting Consumer
Behavior

Social classes are society’s relatively permanent

and ordered divisions whose members share
similar values, interests, and behaviors

Social class is measured by a combination of

occupation, income, education, wealth, and other
variables
Characteristics Affecting Consumer
Behavior

The major social classes

• Upper class
• Middle class
• Working class
• Lower class
Characteristics Affecting Consumer
Behavior

Social Factors
Groups

Membership groups have a direct influence and to which

a person belongs
Aspirational groups are groups to which an individual
wishes to belong
Reference groups are groups that form a comparison or
reference in forming attitudes or behavior
Characteristics Affecting Consumer
Behavior

Social Factors
Groups

Opinion leaders are people within a reference group with

special skills, knowledge, personality, or other
characteristics that can exert social influence on others
• Buzz marketing enlists opinion leaders to spread the
word
• Social networking is a new form of buzz marketing
• MySpace.com
• Facebook.com
Characteristics Affecting Consumer
Behavior

Social Factors

Family is the most important consumer-buying

organization in society

Social roles and status are the groups, family, clubs,

and organizations to which a person belongs that can
define role and social status
Characteristics Affecting Consumer
Behavior

Personal Factors

• Personal characteristics
• Age and life-cycle stage
• Occupation
• Economic situation
• Lifestyle
• Personality and self-concept
Characteristics Affecting Consumer
Behavior

Personal Factors

Age and life-cycle stage

• Youth—younger than 18
• Getting started—18-35
• Builders—35-50
• Accumulators—50-60
• Preservers—over 60
Characteristics Affecting Consumer
Behavior

Personal Factors

Occupation affects the goods and services bought by

consumers

Economic situation includes trends in:

• Personal income
• Savings
• Interest rates
Characteristics Affecting Consumer
Behavior

Personal Factors

Lifestyle is a person’s pattern of living as expressed

in his or her psychographics
• Measures a consumer’s AIOs (activities, interests, and
opinions) to capture information about a person’s pattern
of acting and interacting in the environment
Characteristics Affecting Consumer
Behavior

Personal Factors

• Classifies people according to how they spend

money and time
• Primary motivations
• Resources
Characteristics Affecting Consumer
Behavior

Personal Factors

• Primary motivations
• Ideals
• Achievement
• Self-expression
Characteristics Affecting Consumer
Behavior

Personal Factors

• Resources
• High resources
• Innovators exhibit all primary motivations

• Low resources
• Survivors do not exhibit strong primary motivation
Characteristics Affecting Consumer
Behavior

Personal Factors
Personality and Self-Concept

Personality refers to the unique psychological

characteristics that lead to consistent and lasting
responses to the consumer’s environment
Characteristics Affecting Consumer
Behavior

Personal Factors
Personality and Self-Concept

Brand personality refers to the specific mix of human

traits that may be attributed to a particular brand
• Sincerity
• Excitement
• Competence
• Sophistication
• Ruggedness
Characteristics Affecting Consumer
Behavior

Personal Factors
Personality and Self-Concept

Self-concept refers to people’s possessions that

contribute to and reflect their identities
Characteristics Affecting Consumer
Behavior

Psychological Factors

• Motivation
• Perception
• Learning
• Beliefs and attitudes
Characteristics Affecting Consumer
Behavior

Psychological Factors
Motivation

A motive is a need that is sufficiently pressing to

direct the person to seek satisfaction

Motivation research refers to qualitative

research designed to probe consumers’ hidden,
subconscious motivations
Characteristics Affecting Consumer
Behavior

Psychological Factors
Abraham Maslow’s Hierarchy of Needs
• People are driven by particular needs at particular times
• Human needs are arranged in a hierarchy from most
pressing to least pressing
• Psychological
• Safety
• Social
• Esteem
• Self-actualization
Characteristics Affecting Consumer
Behavior

Psychological Factors

Perception is the process by which people select, organize,

and interpret information to form a meaningful picture of
the world from three perceptual processes
• Selective attention

• Selective distortion

• Selective retention
Characteristics Affecting Consumer
Behavior

Psychological Factors

Selective attention is the tendency for people to screen

out most of the information to which they are exposed
Selective distortion is the tendency for people to
interpret information in a way that will support what they
already believe
Selective retention is the tendency to remember good
points made about a brand they favor and to forget good
points about competing brands
Characteristics Affecting Consumer
Behavior

Psychological Factors

Learning is the changes in an individual’s behavior

arising from experience and occurs through
interplay of:
• Drives
• Stimuli
• Cues
• Responses
• Reinforcement
Characteristics Affecting Consumer
Behavior

Psychological Factors
Beliefs and Attitudes

Belief is a descriptive thought that a person has

about something based on:
• Knowledge

• Opinion

• Faith
Characteristics Affecting Consumer
Behavior
Psychological Factors
Beliefs and Attitudes

Attitudes describe a person’s relatively

consistent evaluations, feelings, and tendencies
toward an object or idea
Types of Buying Decision Behavior

• Complex buying behavior

• Dissonance-reducing buying behavior
• Habitual buying behavior
• Variety-seeking buying behavior
Types of Buying Decision Behavior

Complex Buying Behavior

When consumers are highly motivated in a purchase and

perceive significant differences among brands

Purchasers are highly motivated when:

• Product is expensive

• Product is risky

• Product is purchased infrequently

• Product is highly self-expressive

Types of Buying Decision Behavior

Dissonance-reducing buying behavior occurs

when consumers are highly involved with an expensive,
infrequent, or risky purchase, but see little difference
among brands

Post-purchase dissonance occurs when the consumer

notices certain disadvantages of the product purchased
or hears favorable things about a product not purchased
Types of Buying Decision Behavior

Habitual buying behavior occurs when

consumers have low involvement and there is
little significant brand difference

Variety-seeking buying behavior occurs when

consumers have low involvement and there are
significant brand differences
The Buyer Decision Process

Five stages in the buyer decision process

1. Need recognition
2. Information search
3. Evaluation of alternatives
4. Purchase decision
5. Post-purchase behavior
The Buyer Decision Process

Need Recognition

Need recognition occurs when the buyer

recognizes a problem or need triggered by:
• Internal stimuli

• External stimuli
 The Buyer Decision Process

Information Search

Information search is the amount of information

needed in the buying process and depends on the
strength of the drive, the amount of information you
start with, the ease of obtaining the information, the
value placed on the additional information, and the
satisfaction from searching
The Buyer Decision Process

Information Search

Sources of information:
Personal sources—family and friends
Commercial sources—advertising, Internet
Public sources—mass media, consumer organizations
Experiential sources—handling, examining, using the
product
The Buyer Decision Process

Evaluation of Alternatives

Evaluation of alternatives is how the consumer

processes information to arrive at brand choices
The Buyer Decision Process

Purchase Decision

The purchase decision is the act by the

consumer to buy the most preferred brand

The purchase decision can be affected by:

• Attitudes of others

• Unexpected situational factors

The Buyer Decision Process

Post-Purchase Decision

The post-purchase decision is the satisfaction or

dissatisfaction the consumer feels about the
purchase

Relationship between:
• Consumer’s expectations

• Product’s perceived performance

The Buyer Decision Process

Post-Purchase Decision

The larger the gap between expectation and

performance, the greater the consumer’s
dissatisfaction

Cognitive dissonance is the discomfort caused

by a post-purchase conflict
 The Buyer Decision Process
Post-Purchase Decision

Customer satisfaction is a key to building

profitable relationships with consumers—to
keeping and growing consumers and reaping
their customer lifetime value
The Buyer Decision Process for New
Products

New product is a good, service, or idea that is

perceived by some potential customers as new

Adoption process is the mental process an

individual goes through from first learning about
an innovation to final regular use
The Buyer Decision Process for New
Products

Stages in the Adoption Process

1. Awareness
2. Interest
3. Evaluation
4. Trial
5. Adoption
The Buyer Decision Process for New
Products

Stages in the Adoption Process

Awareness is when the consumer becomes aware

of the new product but lacks information

Interest is when the consumer seeks information

about the new product
The Buyer Decision Process for New
Products

Stages in the Adoption Process

Evaluation is when the consumer considers

whether trying the new product makes sense

Trial is when the consumer tries the new product

to improve his or her estimate of value
The Buyer Decision Process for New
Products

Stages in the Adoption Process

Adoption is when the consumer decides to make

full and regular use of the product
The Buyer Decision Process for New
Products

Individual Differences in Innovation

Early adopters are opinion leaders and adopt new ideas

early but cautiously
Early majority are deliberate and adopt new ideas before
the average person
Late majority are skeptical and adopt new ideas only after
the majority of people have tried it
Laggards are suspicious of changes and adopt new ideas
only when they become tradition
The Buyer Decision Process for New
Products

Influence of Product Characteristics

on Rate of Adoption

Relative advantage is the degree to which an innovation

appears to be superior to existing products

Compatibility is the degree to which an innovation fits the

values and experiences of potential consumers
The Buyer Decision Process for New
Products

Influence of Product Characteristics

on Rate of Adoption

Complexity is the degree to which the innovation

is difficult to understand or use

Divisibility is the degree to which the innovation

may be tried on a limited basis
Consumer Behavior Across
International Borders

Differences can include:

• Values

• Attitudes

• Behaviors

The question for marketers is whether to adapt or

standardize the marketing
APPLICATION OF CONSUMER BEHAVIOR
1. To Analyze Market Opportunity:The study on consumer
behavior helps to understand market opportunity, so we can enter
to new market opportunities. Customer is the king in the market,
so analysis of consumer's needs is essential for understand nature
of market.
2. Selecting the Target Market:
The study of consumer behavior help to understand market, it help
to understand customer needs, and we can concentrate to
particular needs of customer. By the analysis of market if we find
out one particular segment needs a special care, then we can
concentrate in to that area.
APPLICATION OF CONSUMER BEHAVIOR
3 . Determining the Product Mix: Having identified the
unfulfilled need slot and having modified the product to suit
differing consumer tastes, the marketer now has to get down
to the brass tacks of marketing. He has to determine the right
mix of product, price promotion and advertising understand
his behaviour.

4. Use in Non-profit and Social Marketing: The knowledge of

consumer behaviour is also useful in the marketing of non-
profit or social or governmental services of institution such
as hospitals, voluntary agencies, law enforcement and tax
collection agencies.