The Effect of Communication on Consumer

Behaviour
By Bill Faulkner, eHow Contributor
updated: April 19, 2010

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
1. 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
2. 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
3. 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
4. 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
5. 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.

Read more: The Effect of Communication on Consumer

Behaviour | eHow.com
http://www.ehow.com/about_6360816_effect-
communication-consumer-
behaviour.html#ixzz13Tjs90hK