Launch! Advertising and Promotion in Real Time, 2009a
Launch! Advertising and Promotion in Real Time, 2009a Launch! Advertising and Promotion in Real Time, 2009a
Motivation refers to the processes that lead people to behave as they do. For example, why do consumers decide to buy a timeshare vacation property? An industry survey found that the most important reasons to purchase a timeshare include flexibility, low cost, a desirable resort, and the certainty of quality accommodation. [3] It’s important that advertisers understand what drives customers so they can design messages to address central concerns rather than minor ones. Involvement and Perceived Risk One important driver is a consumer’s extent of involvement with a brand or product category. It’s tempting to assume that we put more thought into purchases that are expensive, but this isn’t necessarily true. We might be motivated to put a great deal of thought and effort into choosing even a relatively cheap product if we feel our choice will reflect something about ourselves to others. And involvement often is a function of the product’s degree of perceived risk: Physical risk. Will the wrong choice endanger my health or that of my family? Financial risk. Will the wrong choice cost me too much money? Social risk. Will the wrong choice embarrass me or lead to the wrong impression? Heuristics: Rules of Thumb Hershey or Nestlé? Coke or Pepsi? Charmin or Bounty? Lil Wayne or Usher? People don’t have the time or desire to ponder endlessly about every purchase. Heuristics are shortcuts or mental “rules of thumb” that we use when we make a decision—especially when we choose among products in a category where we don’t see huge differences or if the outcome isn’t do or die. These rules simplify the decision-making process by making it quick and easy. Common heuristics include these: Save the most money. Many people follow a rule like, “I’ll buy the lowest-priced choice so that I spend the least money right now.” Using this heuristic means you don’t need to look beyond the price tag to make a decision. Wal-Mart built a retailing empire by pleasing shoppers who follow this rule. You get what you pay for. Others might use the opposite heuristic, namely, “I’ll buy the more expensive product, because higher price often means better quality.” These consumers are influenced by ads alluding to exclusivity, quality, and uncompromising performance. Stick to the tried and true. Brand loyalty also simplifies the decision-making process—we buy the brand that we’ve always bought before, and thus we don’t need to spend more time and effort on the decision. It’s hard to downplay the importance of brand loyalty—and of the role that advertising plays Saylor URL: http://www.saylor.org/books Saylor.org 109
in creating and maintaining it. In a study of the market leaders in thirty product categories, twentyseven of the brands that were number one in 1930 (such as Ivory Soap and Campbell’s Soup) still were at the top over fifty years later. [4] Clearly “choose a well-known brand name” is a powerful heuristic. KEY TAKEAWAY Some purchases matter to us a lot more than others, so it makes sense that we don’t devote the same amount of attention to advertising for every idea, product, or service. An advertiser needs to appreciate how involved her customers are likely to be; we are more likely to search out detailed information for products that are highly involving to us. In other cases we tend to fall back on heuristics, “rules of thumb” that reflect well-learned rules (such as “it must be better if it costs more”). EXERCISES a. Take a common product or service and demonstrate the decision-making process that an average consumer would go through when purchasing it. b. Consumer motivation is very important to marketers and advertisers. Describe how involvement and perceived risk are used to heighten consumer motivation. c. What is a heuristic? How do marketers and advertisers use heuristics to achieve brand loyalty? [1] Nancy Michael, “Customer Loyalty: Elusive, but Critical,” ABA Banking Journal 99, no. 2 (2007): 42. [2] Roger Slavens, “Understand Client Priorities, Then Deliver Solutions” B to B, March 12, 2007, 24. [3] Beverley Sparks, Ken Butcher, and Grace Pan, “Understanding Customer-Derived Value in the Timeshare Industry,” Cornell Hotel & Restaurant Administration Quarterly 48 (February 2007): 28. [4] Richard W. Stevenson, “The Brands with Billion-Dollar Names,” New York Times, October 28, 1988, A1. Saylor URL: http://www.saylor.org/books Saylor.org 110
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Motivation refers to the processes that lead people to behave as they do. For example, why do consumers<br />
decide to buy a timeshare vacation property? An <strong>in</strong>dustry survey found that the most important reasons to<br />
purchase a timeshare <strong>in</strong>clude flexibility, low cost, a desirable resort, <strong>and</strong> the certa<strong>in</strong>ty of quality<br />
accommodation. [3] It’s important that advertisers underst<strong>and</strong> what drives customers so they can design<br />
messages to address central concerns rather than m<strong>in</strong>or ones.<br />
Involvement <strong>and</strong> Perceived Risk<br />
One important driver is a consumer’s extent of <strong>in</strong>volvement with a br<strong>and</strong> or product category. It’s<br />
tempt<strong>in</strong>g to assume that we put more thought <strong>in</strong>to purchases that are expensive, but this isn’t necessarily<br />
true. We might be motivated to put a great deal of thought <strong>and</strong> effort <strong>in</strong>to choos<strong>in</strong>g even a relatively cheap<br />
product if we feel our choice will reflect someth<strong>in</strong>g about ourselves to others.<br />
And <strong>in</strong>volvement often is a function of the product’s degree of perceived risk:<br />
<br />
<br />
Physical risk. Will the wrong choice endanger my health or that of my family?<br />
F<strong>in</strong>ancial risk. Will the wrong choice cost me too much money?<br />
Social risk. Will the wrong choice embarrass me or lead to the wrong impression?<br />
Heuristics: Rules of Thumb<br />
Hershey or Nestlé? Coke or Pepsi? Charm<strong>in</strong> or Bounty? Lil Wayne or Usher? People don’t have the time<br />
or desire to ponder endlessly about every purchase. Heuristics are shortcuts or mental “rules of thumb”<br />
that we use when we make a decision—especially when we choose among products <strong>in</strong> a category where we<br />
don’t see huge differences or if the outcome isn’t do or die. These rules simplify the decision-mak<strong>in</strong>g<br />
process by mak<strong>in</strong>g it quick <strong>and</strong> easy. Common heuristics <strong>in</strong>clude these:<br />
<br />
Save the most money. Many people follow a rule like, “I’ll buy the lowest-priced choice so that I spend<br />
the least money right now.” Us<strong>in</strong>g this heuristic means you don’t need to look beyond the price tag to<br />
make a decision. Wal-Mart built a retail<strong>in</strong>g empire by pleas<strong>in</strong>g shoppers who follow this rule.<br />
<br />
You get what you pay for. Others might use the opposite heuristic, namely, “I’ll buy the more<br />
expensive product, because higher price often means better quality.” These consumers are <strong>in</strong>fluenced<br />
by ads allud<strong>in</strong>g to exclusivity, quality, <strong>and</strong> uncompromis<strong>in</strong>g performance.<br />
<br />
Stick to the tried <strong>and</strong> true. Br<strong>and</strong> loyalty also simplifies the decision-mak<strong>in</strong>g process—we buy the<br />
br<strong>and</strong> that we’ve always bought before, <strong>and</strong> thus we don’t need to spend more time <strong>and</strong> effort on the<br />
decision. It’s hard to downplay the importance of br<strong>and</strong> loyalty—<strong>and</strong> of the role that advertis<strong>in</strong>g plays<br />
Saylor URL: http://www.saylor.org/books<br />
Saylor.org<br />
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