Dr.
Shivam Sakshi, VITBS, Vellore Institute of Technology, Vellore, Tamilnadu
Module 2: Advertisement and Consumer Behaviour
Dr. Shivam Sakshi, VITBS, Vellore Institute of Technology, Vellore, Tamilnadu
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Dr. Shivam Sakshi, VITBS, Vellore Institute of Technology, Vellore, Tamilnadu
Consumer Behaviour
• Consumer behaviour: It’s the study of people’s reasons and motivations for selecting the products
and services they buy, and explores their buying habits and patterns, too.
• Consumer awareness is a fundamental aspect of consumer behaviour – and advertising is a potent
tool for raising awareness.
• Understanding consumer behaviour is essential in advertising as it enables advertisers to create
tailored messages that resonate with their target audience.
Dr. Shivam Sakshi, VITBS, Vellore Institute of Technology, Vellore, Tamilnadu
advertising psychology
• Advertising psychology is the study of how psychological principles are used in advertising to
influence consumer behaviour.
• Through repeated exposure, ads can alter consumer attitudes towards a brand, making it more
familiar and appealing
• This impact extends beyond just encouraging purchases; it helps brands establish a place in
consumers' minds, reinforcing brand identity and loyalty, and influencing long-term consumer
preferences and decisions.
Dr. Shivam Sakshi, VITBS, Vellore Institute of Technology, Vellore, Tamilnadu
Behavioral and cognitive learning theories
• Behavioral and cognitive learning theories are used in advertising to help marketers understand how
consumers learn and perceive products and brands
• Behavioral learning theory focuses on how the external environment influences learning. It assumes
that all behaviors are learned through interaction with the environment, and that innate or inherited
factors have little influence on behavior
• Cognitive learning theory focuses on how thought processes influence learning. It uses
metacognition, or "thinking about thinking", to help learners understand how to maximize their
brain's potential. Cognitive learning theory focuses on how people learn, rather than what they're
learning
Dr. Shivam Sakshi, VITBS, Vellore Institute of Technology, Vellore, Tamilnadu
READ IT
The general idea is to create an advertisement that has positive features
such that the ad creates enjoyment in the person exposed to it. The
enjoyable ad serves as the unconditioned stimulus (US), and the
enjoyment is the unconditioned response (UR). Because the product being
advertised is mentioned in the ad, it becomes associated with the US, and
then becomes the conditioned stimulus (CS). In the end, if everything has
gone well, seeing the product online or in the store will then create a
positive response in the buyer, leading them to be more likely to purchase
the product.
Dr. Shivam Sakshi, VITBS, Vellore Institute of Technology, Vellore, Tamilnadu
External influences on purchasing decisions
• Consumer buying behavior is influenced by a wide range of external factors
• External factors influencing buying behavior in India are shaped by the country's diverse culture,
economic conditions, and social dynamics.
• Cultural Factors, Social Factors, Personal Factors, Psychological Factors, Economic Factors,
Technological Factors, Political and Legal Factors, Environmental Factors, Competitive Factors,
Media and Advertising, Crisis and Events, Cultural and Social Trends, Geographical Factors, Family
and Household Influences, Peer Pressure and Social Influence, Religious and Ethical Beliefs, Word
of Mouth and Reviews, Cultural Events and Celebrations, Accessibility and Convenience, Education
and Knowledge.
Dr. Shivam Sakshi, VITBS, Vellore Institute of Technology, Vellore, Tamilnadu
Dr. Shivam Sakshi, VITBS, Vellore Institute of Technology, Vellore, Tamilnadu
Dr. Shivam Sakshi, VITBS, Vellore Institute of Technology, Vellore, Tamilnadu
Family as External Factor influencing buying behaviour
• The family is a fundamental external factor that significantly influences consumer behavior in India.
• Companies often design and offer products and services tailored to the family unit to align with
these cultural dynamics.
• How family influences consumer behavior and how companies cater to this aspect
1. Family Size and Composition
2. Gift-Giving Culture
3. Collective Decision-Making
4. Family Values and Tradition
5. Health and Well-being Concerns
Dr. Shivam Sakshi, VITBS, Vellore Institute of Technology, Vellore, Tamilnadu
Groups as external factor influencing consumer behaviour
• External factors like reference groups and social networks have a substantial influence on consumer
behavior
• People often make purchasing decisions based on the opinions, recommendations, and behaviours of the
groups they belong to or associate with
• Companies recognize the importance of these groups in shaping consumer preferences and design their
products and services to cater to the needs and desires of these groups
• Groups such as:
oPeer Influence and social media
oProfessional Networks and Recommendations
o Online Communities and Forums
oFamily and Social Events
o Religious and Cultural Affiliations
Dr. Shivam Sakshi, VITBS, Vellore Institute of Technology, Vellore, Tamilnadu
The diffusion of innovation
• a theory that explains how new products, services, or ideas spread through a population or market
over time
• It describes the process by which individuals and groups adopt and accept innovations at different
rates.
Dr. Shivam Sakshi, VITBS, Vellore Institute of Technology, Vellore, Tamilnadu
Building great brands through communication
Dr. Shivam Sakshi, VITBS, Vellore Institute of Technology, Vellore, Tamilnadu
Dr. Shivam Sakshi, VITBS, Vellore Institute of Technology, Vellore, Tamilnadu
Consumer Decision Journey
Dr. Shivam Sakshi, VITBS, Vellore Institute of Technology, Vellore, Tamilnadu
• TOUCH POINT: Reaching consumers at the moments that most influence their decisions
• Marketing has always sought those moments, or touch points, when consumers are open to
influence.
• The relevance of funnel ?
• Consumer decision journey: is a sophisticated approach which is required to help marketers navigate
this environment, which is less linear and more complicated than the funnel suggests
Dr. Shivam Sakshi, VITBS, Vellore Institute of Technology, Vellore, Tamilnadu
• McKinsey developed this approach by examining the purchase decisions of almost 20,000 consumers
across five industries and three continents
• The shift away from one-way communication—from marketers to consumers—toward a two-way
conversation, marketers need a more systematic way to satisfy customer demands and manage word-
of-mouth
Dr. Shivam Sakshi, VITBS, Vellore Institute of Technology, Vellore, Tamilnadu
Dr. Shivam Sakshi, VITBS, Vellore Institute of Technology, Vellore, Tamilnadu
Dr. Shivam Sakshi, VITBS, Vellore Institute of Technology, Vellore, Tamilnadu
Dr. Shivam Sakshi, VITBS, Vellore Institute of Technology, Vellore, Tamilnadu
• New research shows that rather than systematically narrowing their choices, consumers add and
subtract brands from a group under consideration during an extended evaluation phase. After
purchase, they often enter into an open-ended relationship with the brand, sharing their experience
with it online.
• Marketers often overemphasize the “consider” and “buy” stages of the journey, allocating more
resources than they should to building awareness through advertising and encouraging purchase
with retail promotions.
• New media make the “evaluate” and “advocate” stages increasingly relevant. Marketing investments
that help consumers navigate the evaluation process and then spread positive word of mouth about
the brands they choose can be as important as building awareness and driving purchase.
Dr. Shivam Sakshi, VITBS, Vellore Institute of Technology, Vellore, Tamilnadu
• Instead of focusing on how to allocate spending across media, marketers should
target stages in the decision journey.
• Up to 90% of spend goes to advertising and retail promotions. Yet the single most
powerful impetus to buy is often someone else’s advocacy.
Dr. Shivam Sakshi, VITBS, Vellore Institute of Technology, Vellore, Tamilnadu
Advertising and consumer culture in the digital age
• More than 60% of consumers of facial skin care products do online research about them after
purchase—a touch point entirely missing from the funnel model.
• The off-line channels such as television advertising, in-store browsing, and direct word of mouth
were influential only during the consider stage.
Dr. Shivam Sakshi, VITBS, Vellore Institute of Technology, Vellore, Tamilnadu
Dr. Shivam Sakshi, VITBS, Vellore Institute of Technology, Vellore, Tamilnadu
Dr. Shivam Sakshi, VITBS, Vellore Institute of Technology, Vellore, Tamilnadu
Inherent drama
• Inherent drama is an advertising approach that focuses on the dramatic situation behind a buyer's
need for a product or service
• More importantly, inherent drama allows you to improve upon the image-based soft-sell by adding
in inherently true human emotions and feelings of connectedness.
• Basically, the goal is to find the inherent drama, then use shared experiences and emotions to make
your brand stick in people’s minds.
Dr. Shivam Sakshi, VITBS, Vellore Institute of Technology, Vellore, Tamilnadu