Monday, January 26, 2015

The Effect Of Communication On Consumer Behaviour

Advertisers don't want you to change the channel!


Marketing firms and departments use communication to target specific groups of consumers and influence them into buying a particular product. Sometimes, these firms and departments are unnecessary as word of mouth from consumers creates a buzz and others will purchase goods or use services based on the recommendation of peers. Beyond word of mouth, companies will use advertisements and sales people to communicate to target markets and attempt to influence them into purchasing products.


Word of mouth


Word of mouth buzz for a particular product or service is typically organic and does not come from a company or business. This happens when a certain demographic latches onto a brand or product and, in turn, tells their friends and/or family about it. In his book "The Tipping Point," Malcolm Gladwell talks about how Airwalk shoes become popular with the skating crowd in the 1990's. The trend started with skateboarders telling other skateboarders about the shoes. The buzz became loud and the company realized they were onto something with their product. As a result, they were able to capitalize on the word of mouth communication with their own advertising.


Advertising


Advertising is a necessary form of communication for companies looking to promote their product or service to the consumer. As stated in the Atlantic, advertising has been around for ages. There are even examples found in tombs and on walls with ancient symbols used to promote a merchant's wares. This timeless sales technique will often rely upon needing to capture the attention of consumers.


Once advertisers capture a targeted consumer's attention, they will often employ psychology in an attempt to coerce the individual to purchase a particular product. One such way of doing this is to make people want to fit in by showing the product or service as being popular with various peer groups. Another technique used frequently in advertisements is branding. Branding is useful to advertisers in the fact that it creates and plays upon consumer loyalty.


E-mail


One effective way to keep consumers updated with regard to new products or services is to create a mailing list and send out periodic e-mails. This technique can be especially useful for promotions, sales or coupons. By including deadlines, companies can attempt to drive up sales by creating a sense of urgency. A disadvantage to e-mail campaigns, though, is that too much communication can annoy consumers and potentially turn them off to the company.


Contracts


Written communication is used by companies in the form of contracts. Contracts can be necessary, as they spell out the terms of a particular purchase and establish penalties for breaking them. In spite of the necessity, contracts can have the effect of making customers skeptical or choose not to purchase a particular product. While this is not the desired effect of a company, consumers can be taken aback by confusing language or small print. As reported by CNET News, the prepaid cell phone market is growing, as consumers are becoming intimidated by contract phone plans.


Infomercials


In the Discovery Channel's article on infomercials, the process of how this form of communication causes consumers to impulsively purchase goods is explained. The basic process is that a company will pay to have an infomercial on television. This paid advertisement will begin by illustrating a common "problem" in modern life. Then the "solution," which is the product being sold, will be presented to the audience. For those at home, there is usually an urging to "call now." The effect of this communication is consumers purchasing items they might not usually buy.

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