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1. The Effect of Communication on Consumer
Behaviour
By Bill Faulkner, eHow Contributor
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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.
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The Factors Influencing Consumer Buying Behaviour
Consumer Perception Theory

2. 1. Word of mouth
o 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
o 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.
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E-mail
o 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

3. o 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
o 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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MARKETING COMMUNICATION:
There are 5 basic components of communication:
1. Sender
2. Receiver
3. Medium
4. Message
5. Feedback
In the communications process, the sender encodes the message using words,pictures, symbols
sends it through a selected medium.
The receiver decodes the message based on his or her personal characteristics and experience,
and responds based on such factors as selective exposure, selective perception, comprehension
and psychological noise.
There are 2 types of communications:
1. Interpersonal Communications
2. Mass Communications

4. Interpersonal communications occur on a personal level between towor more people and may be
verbal or non verbal, formal or informal.
Interpersonal communications take place in person,bytelephone,bymail,byemail,on the web etc.,
In mass communications, there is no direct contact between source and receiver.
Mass communications occur through such impersonal media as television, radio, newspapers
and magazines.
Feedback is an essential component of all types of communications because it provides the
sender with some notion as to whether and how well the message has been received.
The credibility of the source, a vital element in message persuasiveness, often is based on the
source’s perceived intentions.
Informal sources and neutral or editorial sources are considered to be highly objective and thus
highly credible. The credibility of a commercial source is more complex and usually is based on
a composite evaluation of its reputation,expertise,and knowledge and that of the medium in
which it advertises, the retail channel and company spokespersons.
Media Selection depends on the product,the audience, and the advertising objectives of the
campaign.Each medium has advantages and shortcomings that must be weighed in the selection
of media for an advertising campaign.
Following the emergence of new technologies, many advertisers are now developing more
customized communications that can reach consumers via media with narrow casting, rather than
broadcasting.
The manner in which a message is presented influences its impact. One sided messages are more
effective in some situations and with some audiences; two sided messages are more effective
with others.
High involvement products are best advertised through the central route to persuasion, which
encourages active cognitive effort.
Marketers can either use objective,factual appeals or emotional appeals. The emotional appeals
most frequently used in advertising fear, humour,sexual appeals etc.,
Audience participation is a very effective communications strategy becuase it encourages
internalization of the advertising message.
What are the challenges you are facing in designing and delivering your Marketing
Communications to your current and potential customers?