MN5006 Serving Customers in Global Markets

Marketing Communication
Analysis Report:
The Use of Consumer
Behaviour in Advertising

Student
Name:
Mirza Yilmaz
Student Number:
13011164

Table of Contents
Table of Contents..........................................................................................................2
Introduction...................................................................................................................4
Advertisement Choice...................................................................................................4
GEICO Lizard Ballard with Warren Buffett...........................................................4
Figure One: GEICO Advert Still One........................................................5
Figure Two: GEICO Advert Still Two........................................................5
Figure Three: GEICO Advert Still Three...................................................6
Visa: Usain Bolt 2014 FIFA World Cup................................................................6
Figure Four: VISA Advert Still One...........................................................7
Figure Five: VISA Advert Still Two............................................................7
Figure Six: VISA Advert Still Three...........................................................8
Consumer Behaviour and Businesses.........................................................................8
Figure Seven: Six Categories of E-Communications Tools or Media
Channels....................................................................................................10
Attention, Learning, Memory and Motivation..............................................................11
Figure Eight: A Model of Consumer Behaviour.........................................11
Figure Nine: The Pyramid of Consumer Behaviour..................................12
Definition of Terms.............................................................................................13
Figure Ten: The Memory Process.............................................................15
Figure Eleven: An Overview of Main Theories of Work Motivation...........16
Analysis..............................................................................................................16

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Table One: Analysis of Advertisements Using Attention, Learning, Memory

and Motivation...........................................................................................17
Personality and Attitudes............................................................................................18
Definition of Terms.............................................................................................18
Table Two: Effect of Personality Characteristics on Consumer Behaviour
Criteria.......................................................................................................19
Table Three:........... Analysis of Advertisements Based on Personality and
Attitude.......................................................................................................20
Conclusion..................................................................................................................21
Recommendations......................................................................................................21
References.................................................................................................................22

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Introduction
This brief report focuses on the use of consumer behaviour theory by businesses
engaged in advertising products and services to consumers. It begins by introducing
the two adverts selected for analysis and outlining why businesses should be aware
of consumer behaviour theory when creating advertisements and other forms of
marketing communication. It then focuses on the application of two theories to the
selected adverts, with a view to understanding the underlying theory and identifying
where theory could be used to better effect.

After a brief conclusion,

recommendations are made for improvement of the selected adverts.

Advertisement Choice
GEICO Lizard Ballard with Warren Buffett
This advert, made for an American audience in 2010, features real staff members
from the insurance company, GEICO, together with an appearance from Warren
Buffett, the owner of the company, in the character of an Axl Rose-type rocker (You
Tube, 2010). The advert focuses on the quality of the customer service provided by
the company to those purchasing their insurance or making a claim on a policy.
Figures One to Three show stills from this video, which lasts two minutes and twenty
three seconds (which would make the advert rather long when compared to others).

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Figure One:

GEICO Advert Still One

(You Tube 2010)

Figure Two:

GEICO Advert Still Two

(You Tube 2010)

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Figure Three:GEICO Advert Still Three

(You Tube 2010)

Visa: Usain Bolt 2014 FIFA World Cup

This advert shows the athlete Usain Bolt travelling from Jamaica to Brazil using his
contactless Visa payment card, which allows him to purchase various items almost
instantly to assist him on his journey, while changing from an athlete to a footballer
(You Tube, 2014). It follows on from an advert in 2012, when Bolt was shown losing
his luggage at (presumably) Heathrow Airport and then racing across London
purchasing the things he needs to get him to the London 2012 Olympic Stadium
where he is due to run a race (You Tube, 2012). The 2012 advert is longer than the
2014 one, at one minute thirty seconds compared to one minute. Figures Four to Six
are stills from the 2014 advert.

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Figure Four:

VISA Advert Still One

(You Tube 2014)

Figure Five:

VISA Advert Still Two

(You Tube 2014)

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Figure Six:

VISA Advert Still Three

(You Tube 2014)

Consumer Behaviour and Businesses

Consumer behaviour is:

the study of consumers actions during searching for, purchasing, using,

evaluating and disposing of products and services that they expect will
satisfy their needs.
(Schiffman and Wisenblit, 2015, p.456)

It affects how businesses interact with their customers, indicating it is a subject about
which businesses and, more specifically, their marketing personnel need to know.
Knowledge of consumer behaviour affects such things as market segmentation,

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effective targeting and product/service positioning (Schiffman and Wisenblit, 2015,

p.54). According to Schiffman and Wisenblit:

effectively catering to the distinct needs of consumers by offering them

clearly differentiated products is significantly more profitable than mass
marketing, in spite of the much higher research, production, advertising
and distribution costs that accompany segmentation and strategic
targeting.
(Schiffman and Wisenblit, 2015, p.54)

Different media vehicles target different segments based on audience characteristics

(Schiffman and Wisenblit, 2015, p.54).

This suggests adverts using traditional

(offline) media will be different to those using social media and digital media (see
Figure Seven), based on the target audience for that particular medium.

If

businesses are to profitably serve consumer needs, knowledge of consumer

behaviour is essential.

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Figure Seven:

Six Categories of E-Communications Tools or Media Channels

(Chaffey and Ellis-Chadwick, 2012, p.30)

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Attention, Learning, Memory and Motivation

Attention, learning and memory fall within the psychological core of Hoyer et al.s
model of consumer behaviour (see Figure Eight).

Figure Eight:

A Model of Consumer Behaviour

(based on Hoyer et al., 2010-2013, p.10)

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Alternatively, they can be situated towards the micro consumer behaviours of

Solomons (2013) pyramid of consumer behaviour (Figure Nine), representing an
individual focus supporting Schiffman and Wisenblits (2015) idea of focusing on
differentiated products/services for individuals and small target segments.

Figure Nine:

The Pyramid of Consumer Behaviour

(Solomon, 2013, p.56)

These four terms will first be defined and then applied to the adverts selected.

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Definition of Terms
Attention is defined as:

how much mental activity a consumer devotes to a stimulus.

(Hoyer et al., 2010/2013, p.76)

Attention has three key characteristics:

It is limited consumers may miss some stimuli, especially when in unfamiliar

surroundings.

It is selective consumers decide what to focus on at any one time, choosing

not to focus on or mentally process other stimuli.

It can be divided consumers can allocate some attention to one task and
some to a different task.
(Hoyer et al., 2010/2013, pp.76-77)

Learning refers to:

a relatively permanent change in behaviour which comes with

experience.
(Solomon et al., 2013, p.261)

It can take the form of behavioural learning. Such theories:

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assume that learning takes place as the result of responses to external

events.
(Solomon et al., 2013, p.261)

Within this area are classical conditioning, which:

occurs when a stimulus that elicits a response is paired with another

stimulus that initially does not elicit a response on its own. Over time, this
second stimulus causes a similar response because it is associated with
the first stimulus.
(Solomon et al., 2013, p.262)

and operant/instrumental conditioning, which:

occurs as the individual learns to perform behaviours that produce

positive outcomes and to avoid those that yield negative outcomes.
(Solomon et al., 2013, p.264)

Memory involves:

a process of acquiring information and storing it over time so that it will be

available when needed.
(Solomon et al., 2013, p.272)

The memory process can be represented diagrammatically (see Figure Ten).

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Figure Ten:

The Memory Process

(Solomon et al., 2013, p.272)

Organisations can determine how memorable their advertising is by assessing

recognition versus recall, to see whether consumers remember the advert after
having been shown it or whether they spontaneously recall the advert without any
prompting (Solomon et al., 2013, p.283).

Motivation can be defined as:

the processes that cause people to behave as they do.

(Solomon et al., 2013, p.187)

Consumer behaviour considers both process and content theories (see Figure
Eleven) when analysing why consumers buy/do not buy, different products and
services.

In addition, other aspects of motivation are relevant to the study of

consumer behaviour, including motivation and direction, motivation and strength,

motivation and emotion and motivational conflicts (Solomon et al., 2013, pp.189193).

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Figure Eleven:

An Overview of Main Theories of Work Motivation

(Mullins and Christy, 2013, p.252)

Analysis
The two adverts will now be analysed based on the criteria of attention, learning,
memory and motivation.

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GEICO (2010)

VISA (2014)

Message

GEICO provides exceptional customer service to its Flow faster with Visa is the catchphrase, suggesting that
customers.
for those in a hurry, using the contactless Visa card will help
them get where they want when they want.

Attention

Has novelty value, with actual staff making the advert and
with the appearance of Warren Buffett, one of the richest
men in the world. This is likely to support the watching of
what is a long advert for an insurance company, likely to be
seen as a boring subject.

Forms one of a series of adverts, so likely to catch the

attention of those who are aware of this. The link to the
World Cup will also gain the attention of those interested in
the football tournament. The advert is relatively short, so
likely to keep the attention of those watching.

Learning

Depends on the consumers past experience of insurance

products and companies in general, and GEICO in
particular. The name of the product./company is not
mentioned at all during the advert, but left as a single flash
towards the end.

Visa is a global brand, known to anyone who has a credit or

debit card in the UK. The focus of the advert is to
encourage consumers to make their purchases using their
contactless Visa card, winning market share from
MasterCard.

Memory

The advert is likely to be memorable, due to its novelty

value, however, whether the consumer remembers that the
company advertising is GEICO is difficult to say, unless the
consumer knows of Warren Buffetts involvement with
GEICO or is quick enough to catch the single flash of the
service name and number.

The advert is likely to be memorable due to the involvement

of Usain Bolt and by the way the advert traces his
transformation into a football player from being a world class
athlete. There is constant movement and change in the
advert, likely to hold the attention and create new images
associated with the service.

Motivation

Insurance is mandatory in certain instances, such as motor

vehicle insurance. Consumers therefore have little choice in
the matter of purchasing such insurance. Other insurance is
optional, and will depend on the consumers feelings
towards protecting property and/or life.

Whether consumers prefer to use contactless cards or to

use chip and pin which might feel more secure is difficult to
judge. Attempting to encourage consumers to make this
move is likely to more than an advertising campaign, even
one that is sustained over years.

Table One:

Analysis of Advertisements Using Attention, Learning, Memory and Motivation

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Personality and Attitudes

Definition of Terms
Personality can be defined as either:

a persons unique psychological makeup, which consistently influences

the way the person responds to his or her environment.
(Solomon et al., 2013, p.653)

or:

consist[ing] of the distinctive patterns of behaviours, tendencies, qualities,

or personal dispositions that make one individual different from another
and lead to a consistent response to environmental stimulus.

These

patterns are internal characteristics that [consumers] are born with or that
result from the way [consumers] have been raised.
(Hoyer et al., 2010/2013, p.396)

There are several research approaches to personality, including psychoanalytic, trait,

phenomenological, social-psychological and behavioural (Hoyer et al., 2010/2013,
pp.396-398).

When attempting to determine whether personality characteristics

affect consumer behaviour, the criteria in Table Two are considered.

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Effect of Personality Characteristics on Consumer Behaviour Criteria

Optimal stimulation level

Susceptibility to influence

Dogmatism

Frugality

Need for uniqueness

Self-monitoring behaviour

Creativity

National character

Need for cognition

Competitiveness.

Table Two:

Effect of Personality Characteristics on Consumer Behaviour Criteria

(Hoyer et al., 2010/2013, pp.398-401)

Attitude is defined as:

a lasting, general evaluation of people, (including oneself), objects or

issues.
(Solomon et al., 2013, p.643)

Attitudes have the following characteristics:

Favourability

Persistence

Attitude accessibility

Resistance

Attitude confidence

Ambivalence.
(Hoyer et al., 2010/2013, pp.128-129)

These characteristics will now be used to analyse the two advertisements.

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GEICO (2010)

VISA (2014)

As mentioned previously, how a consumer reacts to the

advert is based on how they feel about insurance. If they
are, for example, stable personalities, they are likely to see
insurance as a need to have product, so will take an interest
in the advert when it appears. If, on the other hand, a
consumer is either unstable and/or extrovert, they may take
Personality a different attitude on different days, depending on the
environment within which they exist at that particular time. If
a consumer is an optimist, they are not likely to see
insurance as an essential, unless it is required by law. As
such, attempting to change someones personality such that
they view the product or service favourably is pointless.

For Visa, the nature of a consumers personality may well

determine whether they are likely to change how they spend
their money from, say, cash, to contactless. Understanding
the type of person who would be happy to switch to
contactless payments would seem to be essential. There
are external influences on the use of contactless payments.
In London, for example, when using public transport, the
option of using contactless has been introduced. For buses,
cash is no longer accepted, which could push consumers
into using contactless payments, whether they like it or not.
This might generate resistance to the change, causing
consumers to avoid using contactless, simply because they
can, rather than it being a rational decision.

As mentioned earlier, the past history of a consumer with

insurance products in general and Geico in particular will
affect their reaction to the advertisement. This experience
will also affect how quickly a consumer can recall this
attitude when seeing the advertisement. Past experience
may cause an extreme reaction to insurance, with the
consumer actively avoiding the advert if that experience is
negative. Such an experience is likely to be persistent,
making the job of converting the consumer to the Geico
brand extremely difficult if not impossible. If their current
insurance provider has provided a good service, the
consumer may not be willing to change. The attitudes of
friends and relatives may have a significant impact on a
consumers reaction to a specific brand.

Most consumers do not associate with either Visa or

MasterCard, instead seeing their credit/debit cards as being
from their bank. This is likely to affect the attitude of
consumers towards Visa as an organisation, seeing it as a
separate organisation. There is also an issue based on
whether a particular bank uses Visa or MasterCard to
process their card payments. If a bank has decided to use
Visa, a consumer is stuck with Visa whether they like it or
not.
Given the poor service associated with banks,
consumers may simply transfer their experience of their
bank to Visa, which works against changing purchasing
behaviour. Overall, Visa are likely to have an uphill task
converting people to using contactless cards, based on the
association with banks.

Attitude

Table Three:

Analysis of Advertisements Based on Personality and Attitude

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Conclusion
Based on this brief analysis, it appears some research into consumer behaviour was
undertaken by both organisations before the advertisements were released into the
public domain. However, there are a few aspects that could be improved by further
investigation into consumer behaviour.

Recommendations
For Geico, the issue is the reputation of insurance and insurance companies, which
needs to be assessed so their segmentation and targeting strategy identify
consumers who would react positively to their approach and the positioning of their
product/service.

For Visa, there are two issues. One relates to the general reputation of as this is
most likely to affect consumer reaction to a Visa campaign encouraging them to use
contactless systems while attempting to separate the payment system from the
bank. The second is to beware of pushing people into using contactless systems by
ensuring other payment methods are not available. Consumers do not like being
forced to do anything, so Visa need to research this carefully to avoid alienating
consumers and creating a bigger reputational issue.

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References
Chaffey, D. and Ellis-Chadwick, F. (2012) Digital Marketing: Strategy, Implementation
and Practice (5th Edn.) Pearson Learning, Harlow

Hoyer, W. D., MacInnis, D. J. and Peters, R. (2010/2013) Consumer Behaviour

(International Edition) (6th edn.) Cengage South-Western, Mason OH.

Mullins, L. J. and Christy, G. (2013) Management and Organisational Behaviour

(10th Edn.) Pearson Education, Harlow

Schiffman, L. G. and Wisenblit, J. L. (2015) Consumer Behaviour (Global Edition)

(11th Edn.) Pearson Learning, Harlow

Solomon, M. R. (2013) Consumer Behaviour: Buying, Having, and Being (Global

Edition) (10th Edn.) Pearson Learning, Harlow

Solomon, M. R., Bamossy, G. J., Askegaard, S. T. and Hogg, M. K. (2013)

Consumer Behaviour: A European Perspective (5th Edn.) Pearson Learning, Harlow

You Tube (2010) GEICO Lizard Ballad with Warren Buffet available online at
https://www.youtube.com/watch?v=itS9eyO9JLs [accessed 10th November 2014]

You Tube (2012) Visa: Usain Bolt, Competitive Instinct (Olympics 2012) available
online

at

https://www.youtube.com/watch?v=g4kwcY6DJKM

[accessed

10th

November 2014]

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You Tube (2014) Visa: Usain Bolt. 2014 FIFA World Cup. Jamaica to Brazil from
athlete to footballer - 60s available online at https://www.youtube.com/watch?
v=5NF39wHAy9M [accessed 10th November 2014]

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