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The influence of a marketing campaign on consumer behaviour: A case study by Boudier Coetzee DISSERTATION Submitted in partial fulfilment of the degree MAGISTER COMMERCII in BUSINESS MANAGEMENT in the FACULTY ECONOMICS and MANAGEMENT SCIENCES at RAND AFRIKAANS UNIVERSITY JOHANNESBURG STUDY LEADER: DECEMBER 1996 Prof. C. J. Jooste

Transcript of The influence of a marketing campaign on consumer ...

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The influence of a marketing campaign on

consumer behaviour: A case study

by

Boudier Coetzee

DISSERTATION

Submitted in partial fulfilment of the degree

MAGISTER COMMERCII

in

BUSINESS MANAGEMENT

in the

FACULTY ECONOMICS and MANAGEMENT SCIENCES

at

RAND AFRIKAANS UNIVERSITY

JOHANNESBURG

STUDY LEADER:

DECEMBER 1996

Prof. C. J. Jooste

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ABSTRACT

This thesis examines the successfulness of a marketing campaign

launched in 1995. The objective of the campaign was to create

awareness and to stimulate the local telephone network, i.e. to encourage

customers to make more frequent use of the telephone. The cheaper

after hour rates were branded as Callmore Time and this was the theme

of the campaign.

The general theory of the marketing communication process and its'

influence on consumer behaviour is discussed in Chapter 2 as well as the

marketing communications model. Since part of the secondary objectives

of the research is to determine the perceived message of the campaign as

well as the perception of the brand "Callmore" in the market place,

Chapter 3 deals with "Perception as a factor in influencing consumer

behaviour".

Two methods of data collection are used viz. Secondary sources

(telephone traffic statistics) as well as teleohcnic *nterviews. The

universe for this survey was defined as adults, 16 years and older living

in Gauteng and who own a telephone. A random sample of 300

telephone numbers was drawn from the universe.

Finding from the research study are presented and analysed. The report

ends with conclusions drawn from the research and makes

recommendations based on these conclusions.

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TABLE OF CONTENTS.

Page

Chapter 1: Introduction

1.1 Introduction 7

1.2 Background to the problem 9

1.2.1 Historic overview of Telkom 9

1.2.2 Introduction to consumer behaviour 11

1.2.2.1 Definition of consumer behaviour 11

1.2.2.2 Brief overview of consumer behaviour 12

1.2.3 Introduction to marketing communication 14

1.3 Problem statement 15

1.4 Study objectives 16

1.5 Method of research 18

1.6 Content of study 18

Chapter 2: The marketing communication process and its' influence on

consumer behaviour

2.1 Introduction 20

2.2 The communication concept 20

2.3 The marketing communications process 21

2.4 The marketing communications model 22

2.5 The advertising process 24

2.6 Source effects in marketing communications 27

2.7 Message effects in marketing communications 28

2.7.1 Message complexity 29

2.7.2 Emotional versus Rational appeals 29

2.7.3 Fear appeals 30

2.7.4 Humour appeals 30

2.8 Consumer processing of marketing communications 31

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2.8.1 Source evaluation 31

2.8.2 Message evaluation 32

2.8.3 Media evaluation 32

2.9 Communications feedback 33

2.10 Methods of obtaining feedback in the decoding process 34

2.11 Barriers to communications 35

2.12 Results of communications 36

2.13 Summary 37

Chapter 3: Perception as a factor in influencing consumer behaviour

3.1 Introduction 38

3.2 Definition of consumer perception 38

3.3 A model of perception 39

3.3.1 Impulse/Stimuli 39

3.3.2 Observation 40

3.3.2.1 Sensation 40

3.3.2.2 Perceptual selection 41

3.4 The influence of external factors in perceptual selection 41

3.5 The influence of internal factors in perceptual selection 43

3.5.1 Personality 43

3.5.2 Motivation 43

3.5.3 Previous experience 44

3.6 The process of selective perception 44

3.7 Perceptual organisation 45

3.7.1 Figure and ground 45

3.7.2 Perceptual grouping 46

3.7.3 Proximity 46

3.7.4 Continuity 46

3.7.5 Similarity 47

3.7.6 Closure 47

3.8 Reaction (behaviour/attitudes) 47

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3.9 Summary 48

Chapter 4: Research: Evaluation of the influence of a marketing

campaign on consumer behaviour.

4.1 Introduction 50

4.2 Research strategy 53

4.3 Research objectives for the telephonic 54

interviews (survey mode)

4.4 Research approach 55

4.4.1 Universe 55

4.4.2 Sample 55

4.4.3 Fieldwork 56

4.5 Research results 57

4.5.1 Summary of the main findings from secondary sources 57

(telephone traffic patterns).

4.5.2 Summary of the main findings from the telephonic 59

interviews

4.5.2.1 Response to briefly described advertisement 60

to the respondents

4.5.2.2 Response to the fully described 61

advertisement to the respondents

Chapter 5: Conclusions and recommendations 63

BIBLIOGRAPHY

69

Appendixes:

Appendix 1: Callmore comparison on a Monday:

Telephone traffic Pre Callmore as on 16 January 1995

Telephone traffic Post Callmore as on 5 June 1995

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Appendix 2: Callmore comparison on a Tuesday:

Telephone traffic Pre Callmore as on 17 January 1995

Telephone traffic Post Callmore as on 6 June 1995

Appendix 3: Callmore comparison on a Wednesday:

Telephone traffic Pre Callmore as on 18 January 1995

Telephone traffic Post Callmore as on 7 June 1995

Appendix 4: Callmore comparison on a Thursday:

Telephone traffic Pre Callmore as on 19 January 1995

Telephone traffic Post Callmore as on 8 June 1995

Appendix 5: Callmore comparison on a Friday:

Telephone traffic Pre Callmore as on 20 January 1995

Telephone traffic Post Callmore as on 9 June 1995

Appendix 6: Callmore comparison on a Saturday:

Telephone traffic Pre Callmore as on 21 January 1995

Telephone traffic Post Callmore as on 10 June 1995

Appendix 7: Callmore comparison on a Sunday:

Telephone traffic Pre Callmore as on 22 January 1995

Telephone traffic Post Callmore as on 11 June 1995

Appendix 8: Callmore comparison for two months prior to the campaign

(March & April 1995) as well as during the campaign May

1995.

Appendix 9: Recall of briefly described adverts.

Base: All informants

Appendix 10: Companies associated with adverts.

Base: All who recall briefly described ad.

Appendix 11: Perceived message put across by advert.

Base: All who recall briefly described ad.

Appendix 12: Recall of fully described adverts.

Base: All informants

Appendix 13: Companies associated with adverts.

Base: All who recall fully described ad.

Appendix 14: Perceived message put across by advert.

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Base: All who recall fully described ad.

Appendix 15: Questionnaire

LIST OF FIGURES

1.1 Consumer lifestyle and consumer decisions 13

1.2 Model of marketing communication (4M's) 15

2.1 The 5-W approach to communication 21

2.2 The marketing communications process 22

2.3 Model of the advertising communication system 25

2.4 Methods of obtaining feedback in the decoding

process

34

3.1 A model of perception 39

4.1 Weekly call rate structure featuring Callmore time 51

4.2 Sample frame for research 56

4.3 Callmore comparison: Call migration from

rate group 3 to rate group 2

58

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CHAPTER 1: INTRODUCTION

1.1 Introduction

In most companies, significant differences among customers are

recognised and used as a basis for marketing planning. Divergent target

markets are identified where these target markets are composed of

people with certain patterns of behaviour determining their decision

making process. Marketing is concerned with the orientation of products

or services to the market, and an important component of this decision-

making process is associated with the buying behaviour of consumers in

the target market. In marketing it is important to know how the product

is perceived by the different market segments, and what the values,

needs and expectations of these consumers are. It is equally important to

know how consumer attitudes are formed and how learning takes place.

The American Marketing Association defines consumer behaviour as "the

dynamic interaction of affect and cognition, behaviour, and environmental

events by which human beings conduct the exchange aspects of their

lives"(Peter & Olson 1993: 8). There are at least three important ideas in

this definition:

Consumer behaviour is dynamic;

It involves interaction between affect and cognition's,

behaviours, and environmental events and

- It involves exchanges.

From the viewpoint of any marketing organisation, a marketing strategy is

a plan designed to influence exchanges to achieve organisational

objectives. Typically, a marketing strategy is intended to increase the

probability or frequency of consumer behaviours, such as purchasing

particular products or making more use of a particular service. This is

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accomplished by developing and presenting marketing mixes directed at

selected target markets. A marketing mix consists of product, promotion,

distribution, and pricing elements (Peter & Olson 1993: 9).

Thus marketing strategies not only adapt to consumers, but also change

what consumers think and feel about themselves, about various market

offerings, and about the appropriate situations for product purchase and

use (Peter & Olson 1993: 12).

The product element in the marketing mix is carried out at two levels.

New products are conceived and marketed, and existing products and

product lines are manipulated and modified to meet changing consumer

needs and competitive activities. Marketing decisions relating to the

product include quality, branding, styling, product lines, positioning,

packaging, labelling, trade marks, licensing, and patents. Part of this

strategy revolves around cues that communicate the source, function,

and quality of products. The products brand, package, price and physical

characteristics are important cues the market strategist can control to

influence consumer perceptions and attitudes (Du Plesis, Rousseau &

Blem 1994:12).

The promotion element in the marketing mix consists out of four

elements viz. the following:

> Advertising - "any form of non-personal presentation and

promotion of ideas, goods or services by an identified sponsor".

> Sales promotion - "short-term incentives to encourage purchase

or sale of a product or service".

> Publicity - "non-personal stimulation of demand for a product,

service or business unit by planting commercially significant news

about it in a published medium or obtaining favourable presentation

of it upon radio, television or stage that is not paid for by the

sponsor".

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Personal selling - "oral presentation in a conversation with one or

more prospective purchasers for the purpose of making sales".

(Kotler 1991:603).

This study will look at the influence of a marketing campaign on

consumer behaviour regarding the usage of a specific service in the

telecommunications industry. In particular the impact of a marketing

campaign on existing consumer behaviour will be analysed. The

successfulness of the marketing campaign will also be evaluated against

the pre- consumer behaviour.

1.2. Background to the problem

1.2.1 Historic overview of Telkom

On October 1991 Telkom entered a new era of existence. The

organisation was commercialised amidst a furore, ranging from outrage

from the left and right wings, to applause and suspicion from advocates

of the free market system. Commercialisation was seen as a necessary

step on the path to privatisation. Ultimately commerCalisation was the

result of an international paradigm shift in the thinking of governments.

No longer would telecommunication utilities in the western world be

protected as "strategic investments". The benefits of competition in the

marketplace needed to be experienced (Senior spokesperson for Telkom:

1991).

South Africa has followed this change in the international mind-set, albeit

belatedly. Telkom's commercialisation came ten years after British

Telecom's privatisation. With it comes the prospect of deregulation of

the telecommunications industry, if only in certain segments initially.

Telkom is presently at a cross-roads. Either it can resist competition at all

cost, with the inevitable consequence of an irreparably damaged industry

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structure, or it can accept the inevitability of competition, and develop a

strategy for dominating its chosen segments of the telecommunication

industry. One of the most important dynamics affecting the

telecommunications industry in the world today is the fact that borders

are rapidly disappearing. This is as true at a national level as it is at the

technological level (Financial Mail: August 25, 1995:22).

Modern telecommunications technology allows users from all over the

world to communicate with each other. More than that, it allows service

providers and telecommunication operators to breach national borders

with ease and impunity. The implication of this is that even stringent

legislation cannot prevent the arrival of competition. The entry of foreign

competitors into the local market is likely to have a significant impact on

Telkom.

The democratic elections have eliminated the sanction related trade

barriers, and companies such as Telkom are able to begin exploiting

opportunities in Africa and internationally. At the same time Telkom and

the local telecommunication industry have been exposed to global

competition. Several of the major global telecommunication players such

as AT&T, Sprint, MCI and BT are establishing themselves in South Africa.

Research conducted by AMS Market Intelligence (1993) revealed that

despite the reliance of business people on voice communication services,

respondents showed a significant lack of awareness of existing Telkom

business voice products and services. Only Toll Free, Motor Phones and

Teleconferencing registered awareness levels above 50%. In each case,

these services have names which are descriptive to respondent recall.

Products and services where the name has no obvious link to function,

such as HTS, BTS and Plus Facilities tend to enjoy lower awareness

amongst respondents.

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Consequently more effective marketing has been listed by many key

respondents in the research conducted by AMS Market Intelligence

(1993) as one of the main challenges facing Telkom if Telkom is to

compete successfully with international telecommunication brands such

as BT or Sprint. The use of acronyms such as BTS for Business

Telephone System and HTS for Home Telephone System has been

effectively used within the company during their test/pilot phases and it

then became their so-called brand names during the commercial phase

and was marketed as such, resulting in the poor awareness levels as well

as low impact marketing campaigns.

1.2.2. Introduction to consumer behaviour

During the 1970's researchers in consumer behaviour started developing

the concept of consumer processes per se, rather than "borrowing"

concepts from other disciplines and applying these to consumer behaviour

(Robertson 1984:18). Many researchers realised, for example, that the

processes which lead to purchasing decisions are more complex than was

indicated by earlier attitude studies.

Today consumer behaviour has grown into a fully-fledged research

discipline and is an important field of study in its own right. Research in

consumer behaviour has made valuable contributions to the knowledge of

human behaviour in general, and has developed into a fully grown mature

posture.

1.2.2.1. Definition of consumer behaviour

Many divergent definitions of consumer behaviour exists and there Mellot

(1983:5) rightly states that there is no universally acceptable definition of

consumer behaviour. For the purpose of this proposal the definition of Du

Plessis (1986:39) will be used:

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' "Consumer behaviour comprises the behaviour patterns of decision units

(individuals as well as families) which precede, determine and follow on

the decision process for the acquisition of need-satisfying products, ideas

and services."

1.2.2.2. Brief overview of consumer behaviour

According to Hawkins, Best & Coney (1992:5) the key to successful

marketing strategies is a thorough understanding of consumer behaviour.

An understanding of consumer behaviour includes observable behaviours

such as amount purchased, when, with whom, by whom, and how

purchases are consumed. It also includes non-observable variables such

as the consumer's values, personal needs, perceptions, what information

they have in memory, how they obtain and process information, how

they evaluate alternatives, and how they feel about the ownership and

use of various products (Hawkins, Best & Coney 1992:6).

The marketing manager can most appropriately view the consumer as a

problem solver (Hawkins, Best & Coney 1992: 14): "a decision-making

unit (individual, family, household, or firm) that takes in information,

processes that information (consciously and unconsciously) in light of the

existing situation, and takes action to achieve satisfaction and enhance

lifestyle."

Problems arise for consumers in their attempts to develop, maintain,

and/or change their lifestyle as shown in Hawkins, Best & Coney

(1992: 15)

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Needs/attitudes that influence

consumption decisions

Behaviour/experiences that reduce, maintain, or enhance lifestyle 4_Jt'

Figure 1.1: Consumer lifestyle and consumer decisions

Source: Hawkins, Best & Coney: (1992: 15)

Consumer lifestyle is how you live. It includes the products one buys,

how one uses them, what one thinks about them, and how one feels

about them.

Twelve basic factors influence consumer lifestyle: marketing activities,

culture, values, demographics, social status, reference groups,

households, personality, emotions, motives, perceptions, and learning.

These twelve basic factors can be divided into two types of influences

viz. external and internal influences (Hawkins, Best & Coney: 1992: 16).

For purposes of this study there will be focused on one basic internal

influence viz. perception and one external basic influence viz. marketing

communication.

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Perception can be described as "how we see the world around us". Two

individuals may be subject to the same stimuli under apparently the same

conditions, but how they recognise them, select them, organise them,

and interpret them is a highly individual process based on each person's

own needs, values, expectations, and the like. Perception is defined as

the process by which an individual selects, organises, and interprets

stimuli into a meaningful and coherent picture of the world. A stimulus is

any unit of input to any of the senses (Schiffman & Kanuk, 1991:145).

Examples of stimuli include products, packages, brand names,

advertisements and commercials.

1.2.3. Introduction to marketing communication

Fundamentally all marketing communication is concerned with the needs

and wants of people, both as individuals and as groups. Successful

marketers understand people or, more technically consumer behaviour.

Knowing what makes his customers "tick" and formulating a

product/service offer to satisfy their needs, wants, hopes, aspirations,

dreams and desires is the hallmark of the successful marketer (Schiffman

& Kanuk, 1991:268).

There are four basic components of all communications: a source, a

destination, a medium, and a message (Schiffman & Kanuk, 1991:269).

The source, as the initiator of the message, may wish to impart a feeling,

an attitude, a belief, or a fact to another person or persons. To do so,

the source must first find some way to encode this message so that it

will accurately convey the message to the intended destination. He or

she may use words, or pictures, or a facial expression, or some other kind

of recognisable signal or code that will enable the receiver to understand

the intended meaning.

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Marketer (source)

Market (reciever)

Encoding Decoding Message (content/style)

Medium (channel)

—4 __►

The marketing communications process looks as follow:

Figure 1.2: Model of marketing communication (4M's)

Feedback

Source: Du Plesis, Rousseau & Blem (1995:211)

This two-way process involves the marketer framing a message and

sending it through a medium (or channel) to the market. The target

market will, in turn, evaluate the information received in terms of both

content and style (what is said and how it is said) and then passively or

actively provide a response to the sender. The basic difficulty in the

communication process occurs during encoding and decoding. The

message gets encoded in words, pictures or symbols. These must be

decoded by the market (or receiver) for effective communication to take

place. This may be particularly difficult in a country such as South Africa

where the modern First World marketer often has a different frame of

reference, mind set and language to his traditional Third Worlds market

(Du Plesis, Rousseau & Blem, 1995:212).

1.3. Problem statement

The transformation from the South African Post and Telecommunication

Department (SAPT) to Telkom in 1991 provided Telkom with excess

opportunities to prove that they can be more cost effective as well as

customer orientated. From a marketing perspective the single most

important aspect to start with was creating a new corporate identity.

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Corporate identity has been defined as " the branding and packaging of

an entire company" (Murthy 1990). The communication of a corporate

identity requires that an organisation should consistently reflect its

strategic intent through all it's interfaces with the various audiences it

seeks to serve. These interfaces include company vehicles, employees'

uniforms, stationary, and sponsorship events. Relevant audiences include

the government as only shareholder, suppliers, employees, potential

customers as well as immediate customers.

After successfully implementing the new corporate identity for Telkom,

the research conducted by AMS Market Intelligence (1993) revealed that

despite the reliance of business people on voice communication services,

respondents showed a significant lack of awareness of existing Telkom

business voice products and services. This was ascribed to the fact that

Telkom was still using "brand names" for products that was endowed on

them during the SAPT era as well as ineffective marketing campaigns.

Subsequently marketing strategies were implemented to try and alter this.

This study specifically looks at a marketing campaign that was launched

to influence consumer behaviour (usage) for a service in the

telecommunications industry.

1.4. Study objectives

The primary objective of this study is to look at a product from the

Telkom product portfolio that previously was unbranded and for which a

set pattern of consumer behaviour existed. The product referred to here is

actually a service and therefore intangible. Telephone traffic patterns

have shown that there is certain existing call patterns. There is normal

peak times and low times over weekdays and weekends that doesn't

vary. Although there has been three different rate groups for years,

consumer behaviour stuck to that set patterns of behaviour. The three

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rate groups were "branded" as Peak hours, Off-peak hours and After

hours.

This study will specifically look at the Off-peak and After hours consumer

behaviour patterns. That is when the Telkom telephone network traffic is

not so intent and capacity is available to handle more telephone calls.

Objectives

This study will reflect the influence of a marketing campaign on a set

pattern of existing consumer behaviour for a service in the

telecommunications industry.

Primary objectives include:

- To measure the successfulness of altering existing conventional

consumer behaviour and

- measure the increase in the usage rate of an average telephone

customer during cheaper after hour rates.

Secondary objectives include:

- The measurement of the marketing campaign to establish whether the

campaign is known and correctly identified with Telkom as well as the

"Callmore" concept.

Specific objectives are:

- To measure the recall of the marketing campaign;

To measure company awareness of the marketing campaign;

To determine the perceived message of the marketing campaign and

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- The perception of the brand used in the marketing campaign in the

market place.

1.5 Method of research

Two methods of research is being utilised in this case study viz.

secondary sources to Telkom and the survey mode.

Secondary sources viz. internal to Telkom is used to measure the

successfulness of altering existing conventional consumer behaviour and

to measure the increase in the usage rate of an average telephone

customer during Callmore time. This will meet the primary objectives of

this study. This will take on the form of comparing telephone traffic

patterns of consumers before, during and after the marketing campaign.

In another method of data collection viz. the survey mode telephonic

interviews was done amongst adults in Gauteng. Research conducted by

Market Research Africa for Telkom will be used to meet the secondary

objectives of this study.

1.6 Content of study

The content of the study is as follows. Chapter two focus on the

marketing communication process and its' influence on consumer

behaviour. Marketing communications are central to any marketing plan

designed to influence consumers to buy. This chapter discuss the

communication concept as well as the 5-W approach to communication.

The elements of the marketing communications process being the

marketing communications model, the advertising process, barriers to

communications and the results of communications are also discussed in

detail.

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Chapter three deals with perception as a factor in influencing consumer

behaviour. Perception is a key concept in the practice of marketing.

Ultimately, it is how the consumer perceives products and services that

guides purchase decisions in the marketplace. Individuals act and react

on the basis of their perceptions, not on the basis of objective reality,

thus it is important for marketers to understand perception. This chapter

focus on a model of perception and in specific on the various elements

embodied in this model viz. impulse, observation, selection, organisation

and reaction. Each of the elements are discussed in detail.

Chapter four deals with the research strategy and research objectives and

the research approach taken. The results obtained through the research

are also discussed.

Chapter five deals with the conclusions and recommendations of the

study.

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Chapter 2: The marketing communication process and its' influence on

consumer behaviour

2.1 Introduction

In order to position products to meet consumer needs, product benefits

must be communicated to the consumer. Marketing communications are

designed to inform and influence consumers. The communication of

information and influence by the marketer and the receipt of marketing

information by the consumer are key elements when influencing

consumer behaviour. Without information the consumer cannot act.

Through marketing communications consumers learn about new products,

the prices and availability of existing products, and the characteristics of

alternative brands.

Marketing communications are central to any marketing plan designed to

influence consumers to buy. Marketers communicate by mass media

advertising, package information, sales promotions, and personal selling.

The marketing communications process involves advertising, personal

selling, and in-store promotions (Assael, 1992:587)

2.2 The communication concept

Like the marketing concept, the communication concept focuses on the

needs and wants of the consumer. In the case of communications, the

message is the object of consumption. Krugman, Reid, Dunn & Barban

(1994:49) identified the 5-W approach as an useful way of thinking about

communication. In advertising terms, (1) who is the sponsoring

advertiser and/or agent, (2) what is the advertisement or commercial, (3)

whom is the target market, (4) which medium is the media type (for

example TV versus print) and vehicle (for example, M-Net versus SABC1),

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and (5) what effect is how targeted consumers respond to

advertisements and commercials.

Figure 2.1: The 5-W approach to communication

Advertiser

Ad

Target Prospects

Mass Media

Propect Reaction

Who

What

When

Which medium

What effect

Feedback

The communicator must choose among alternatives at each stage of the 5-W process.

Source: Krugman, Reid, Dunn & Barban (1994:51)

However, advertising communication is not as simple as the 5-W

approach implies. Many factors, both controllable and uncontrollable,

make effective advertising communication a complex and unpredictable

process.

2.3 The marketing communications process

Assael (1992: 587) explains the marketing communications process as

presented in the following figure. The top of the figure cites five

requirements for marketing communications: a source, a message, a

means of transmitting the message, a receiver, and action by the

receiver. The model is translated into an advertising process. The results

of the marketing communications process are also shown, including

possible barriers to effective communication from advertiser to consumer.

Each of these concepts will briefly be examined in this study.

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Feedback Direct Feedback

Indirect Feedback

Lack of exposure/ Rejection of message

Message accepted

No action for reasons other than message

MARKETING COMMUNICATIONS MODEL (Marketing Agency)

ADVERTISING PROCESS

BARRIERS TO COMMUNICATIONS

RESULTS OF COMMUNICATIONS

Sou ce Iti. Encoding ____+ Transmission _o. Decoding _, Action

(Marketer) (Advertising (Mass Media) (Consumer) (Consumer)

agency/ Salesperson/ marketer)

Communications Develop Transmit Exposure Consumer

idea/Product message message perception behaviour

concept --• to commu- --•to target -p and interpre- ► nicate consumers tation of product bane- message A

fits

Poor definitions Message Competitive Lack of

of objectives/ unrelated clutter credibility/

Product to needs/ Advertising

concept Deceptive wearout

advertising

Figure 2.2: The marketing communications process

Source: Assael (1992: 588)

2.4 The marketing communications model

The five steps at the top of the figure describe the marketing

communications model viz. the source, encoding, transmission, decoding

& action and feedback.

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The source - also known as the communicator, sender, or encoder -

initiates the process of communication by having an idea or thought to

share with another person, a small group of people, or a large group of

people (a mass audience). To bring about communication, the source

must transform the idea of thought into a message. Communications

sources can be classified into two basic types: mass communicators and

interpersonal communicators. (Krugman, Reid, Dunn & Barban,

1994:54). Objectives must be developed by the source and a target

market must also be identified for its communications.

Source identification in advertising is a special case. According to William

Wilkie (1986:250) an advertising communicator has four options in

source identification:

Identify the company or brand as the source, especially if the

advertiser or its product has a strong and positive reputation.

Associate the company or brand with a "catchy" slogan or theme.

Associate the company or brand with a media seal of approval or an

independent testing organisation.

Use a spokesperson - expert, celebrity, or ordinary person.

Encoding is the process where the objectives set by the source is

translated into a message known as encoding. Advertising agencies

develop messages that are encoded into advertisements (Assael, 1992:

589).

The third step in the communication process is transmitting the message

to the target market. Advertising agencies select media designed to

reach the intended audience. In the next step. the consumer decodes the

message, that is, translates it so it is understood and possibly retained in

memory. Two key questions are whether the consumer interprets the

message in the manner intended by the advertiser and whether the

message positively influences consumer behaviour. Since most marketing

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communications are designed to influence the consumer to act, consumer

purchasing behaviour is the key variable in assessing communications

effectiveness (Assael, 1992: 589).

According to Assael (1992; 589) the final step in the communications

process is feedback, that is, evaluating the effectiveness of the

communication. This concludes the five steps at the top of the marketing

communications process that describe the marketing communications

model. Subsequently the advertising process will be discussed.

2.5 The advertising process

In the figure from Assael, on page 18: The marketing communications

process, it is showed how advertising is developed in the context of the

six-step marketing communications model. In the first step, the source

develops message objectives and translates them into a communications

idea or product concept. Next, the advertising agency encodes messages

to communicate product benefits.

The third step, transmitting the message to a target segment, requires a

media plan that is cost effective. An effective media plan achieves a

delicate balance between several potentially conflicting objectives. One

possible conflict occurs between trying to reach as many people as

possible versus reaching them as frequently as possible. The next steps

involve the consumer's exposure to the message, perception and

interpretation of it, and possible action based on the message.

The last step, feedback, is designed to determine whether consumers

have decoded the message as intended and whether they are likely to

translate perceptions of the message into purchasing actions. Such

feedback should help advertisers determine whether to continue the

campaign, change it, or cancel it.

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Source (Advertiser)

Receiver (Audience)

Channel (Word-of-mouth)

Channel (Media)

The perception process

N.

Aaker & Myers model of the advertising communication system look as

follow:

Figure 2.3: Model of the advertising communication system

Destination

Source: Aaker & Myers (1987:294)

According to Aaker & Meyers (1987:293) advertising communication

always involves a perception process and four of the elements shown in

the model: the source, a message, a communication channel, and a

receiver. In addition, the receiver will sometimes become a source of

information by talking to friends or associates. This type of

communication is termed word-of-mouth communication, involves social

interaction between two or more people, and the important ideas of

personal influence and the diffusion of information.

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Source

The source of a message in the advertising communication system is

where the message originates. There are many types of "sources" in the

context of advertising, such as the company offering the product, the

particular brand, or the spokesperson used.

Message

The message refers to both the content and execution of the

advertisement. It is the totality of what enters the receiver's perception

process.

Channel

The message is transmitted through some channel from the source to the

receiver. The channel in an advertising communication system consists

of the media, such as radio, television, newspapers, magazines,

billboards, point-of-purchase displays, etc. It should be noted that

communication usually has a channel capacity. There is only so much

that a receiver will be motivated and capable of processing. Furthermore,

there is a physical limit to the number of advertisements that can be

shown on prime time.

Receiver

The receiver in an advertising communication system is the target

audience. Thus, the receiver can be described in terms of audience

segmentation variables, life-style, benefits sought, demographics, and so

on. A particular interest can be the involvement in the product and the

extent to which the receiver is willing to search for and/or process

information. The communication can have a variety of effects upon the

receiver, it can

Create awareness;

Communicate information;

Develop or change an image;

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Create or change an attitude and

Precipitate behaviour.

Destination

Aaker & Meyers communication model does not stop at the receiver but

allows for the possibility that the initial receiver might engage in word-of-

mouth communication to the ultimate destination of the message. The

receiver then becomes an interim source and the destination becomes a

receiver. Word-of-mouth can be a critical part resulting from an

advertising program. The reality is that for some products the absence of

word-of-mouth communication can be fatal, because it is only the word-

of-mouth communication that has the credibility, comprehensiveness, and

impact to affect ultimate behaviour of a portion of the audience (Aaker &

Meyers, .1987:295)

2.6 Source effects in marketing communications

Source factors play an important role in persuasive communication.

Research on source factors and their influence on persuasion has a long

history in social psychology and mass communication. It is important to

consider the credibility and attractiveness of the source to the consumer

to understand the effects the source has on consumer behaviour (Aaker

& Meyers, .1987:295).

Source credibility

Source credibility is the level of expertise and trustworthiness consumers

attribute to the source of the message (McCracken, 1989: 310).

Expertise is the ability of the source to make valid statements about the

characteristics and performance of the product. Trustworthiness is the

perception that a source has made a valid statement about the product

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According to Aaker & Meyers (1987: 303) three dimensions of source

credibility are particularly important in advertising:

Prestige: Prestige derives from past achievements, perutation, wealth,

political power, and the visibility of a person in some reference group -

from a circle of friends to a nationally prominent reference group such as

movie stars or sports heroes.

Similarity: The source, instead of being admired or envied, could be

effective by being liked and by having the audience member strongly

identified with it. A source that is presented as being similar to the

audience member in terms of attitudes, opinions, activities, background,

social status, or life-style could achieve both liking and identification.

Physical attractiveness: The research on physical attractiveness tends to

show that "what is beautiful is good". All other things being equal, the

stronger the physical attraction of the source, the greater the liking will

be, and the stronger will be the persuasive impact.

2.7 Message effects in marketing communications

While the characteristics of the source are certainly important in

influencing consumer reactions to communications, of equal importance

are the impact of the message and the message characteristics. The

advertising message is meant to inform and persuade. Informational

objectives may be directed toward announcing new products or changes

in existing products, informing the consumer of product characteristics,

or providing information on price and availability.

Mowen (1990: 401) states that the first step in creating a message is to

determine its content - that is, the communicator must identify the

strategy that will be used to influence receivers in the desired manner. A

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variety of questions exists for communicators to consider in developing

message content. Some of these include:

How simple or complex should the message be?

- Should the message take an emotional or a rational approach?

Is it appropriate to use a fear appeal?

What is the appropriate role of humour in advertising, etc.

2.7.1 Message complexity

From an information-processing perspective, in order for a message to

have any effect on a receiver, he or she must first be exposed to the

message. In addition, the receiver must then attend to the information

and comprehend it. A factor that strongly influences the ability of

receivers to comprehend the information is the message complexity. If

the information is too complex or presented in a garbled, confusing

manner, receivers are less likely to comprehend and be persuaded by the

information (Mowen, 1990: 402).

2.7.2 Emotional versus Rational appeals

Assael (1992: 597) states that advertisers can communicate product

benefits by "pulling at the heart strings of the consumer" through

emotional appeals, or they can more directly inform consumers of specific

product benefits through rational appeals. Emotional advertising is

popular because many products have become more standardised as they

travel along their life cycle and lose their uniqueness. As a result,

according to one marketer,

" Many advertisers have turned to sentiment because they've run out of

compelling appeals to logic. Their own sales pitches have lost their

punch and for the increasing number of products that don't differ

markedly from their competitors, new arguments are hard to find"

(Assael, 1992: 598)

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2.7.3 Fear appeals

According to Mowen (1990: 405) in a fear appeal a source

communicates the message that if the consumer fails to use a particular

product or service something bad will happen. Many different types of

fear appeals exist, and they are directly related to the various risks that

consumers perceive. Thus, fear appeals can be constructed for products

or services that help minimise health/safety, social, performance,

financial, and other types of risk in the consumer environment

2.7.4 Humour appeals

Humorous messages are used because they attract attention and because

advertisers believe that humour can be persuasive. There are pros and

cons for the use of humour in advertising. On the positive side, humour

is likely to increase attention and memorability. It is also likely to

enhance the credibility of the advertiser. Humour may create a positive

feeling toward the advertiser and thus increase the persuasiveness of the

message. It also may distract consumers who use competitive products

from developing arguments against the adver _iser's brand and may lead

them to accept the message (Assael, 1992: 604).

A variety of advertising executives have proposed various rules for using

humour. The following is a list of do's and don'ts from Anthony Chevins

(1981:22):

The Don'ts

Don't tell jokes because they wear out fast.

Never make fun of the product.

Don't use surprise endings; they surprise only once.

Don't make it hard for the viewer to figure out the humour.

Don't let the humour overwhelm the product.

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6. Don't use humour when you can't figure out what else to do.

The Do's

Make the humour relevant.

Involve the audience in the humour early in the commercial.

Use the humour to sell the product's strong points.

Be charming, not funny.

Make humour simple and clear.

Integrate the humour with the message of the ad.

2.8 Consumer processing of marketing communications

The fourth step in the communication model is consumer decoding of

marketing communications. Decoding requires consumers to acquire and

process marketing information. According to Assael (1992: 606)

consumers when processing information, are actually evaluating the

source, the message and the media from multiple sources rather than

from one single source.

2.8.1 Source evaluation

When consumers receive a marketing communication message, they

evaluate the source of information. Evaluation of the credibility and

attractiveness of the source frequently affects evaluation of the message.

The source has the greatest effect on message acceptance in two cases

viz.

The source is more important when product involvement is low, in a low

involvement case, the source may influence the consumer to accept the

message because the consumer is a passive recipient of information with

no strong convictions regarding the communication. Second, the source

is more important when the consumer has little experience with the

products. Consumers with little experience are more likely to evaluate

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the source in order to assess the value of information. They look for

reliable sources to supplement their limited information (Assael, 1992:

607).

2.8.2 Message evaluation

Consumers can evaluate the message in relation to or independent of the

source. In either case, they arrive at a judgement regarding the

relevance, believability, and likeability of the message. These responses

can be divided into two types of general reactions: cognitive and

affective. Cognitive responses evaluate the acceptability of the claims

(supportive of or counter to prior beliefs). Affective responses reflect the

consumer's attitude toward the message from positive to negative.

Cognitive responses are the way consumers think about an

advertisement; attitudes toward the advertisement (that is, affect) are the

way consumers feel about it. Attitude toward the advertisement is the

consumer's predisposition to respond favourably or unfavourably to a

particular advertisement. Positive cognitive responses (support

arguments and source bolstering) are likely to produce positive consumer

attitudes toward an advertisement; negative cognitive responses (counter-

arguments and source derogation) are likely to produce negative attitudes.

Cognitive and affective responses to an advertisement have different

strategic implications. Cognitive responses are reactions to message

content. A consumer's attitude toward a advertisement is influenced by

a wider range of peripheral factors such as colour, music, symbols and

imagery (Olney, Holbrook & Batra, 1991:440).

2.8.3 Media evaluation

Consumers evaluate an advertising message in the context of the medium

in which it is transmitted. Consumer's develop images of media that

influence message acceptance. Programs or editorial content may vary in

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a given medium; therefore, advertisers must consider whether the specific

environment in which a print advertisement or commercial is placed may

influence message acceptance (Assael, 1992: 611)

2.9 Communications Feedback

The final step in the communications process is feedback to the marketer

to evaluate the effectiveness of the marketing communication, McGuire

(1978:161) established that a marketer can obtain direct feedback by

establishing a link between message effectiveness and purchase

behaviour or indirect feedback by evaluating the way consumers decodes

the message in terms of consumer exposure, attention, comprehension,

and retention.

The following diagram reflect a hierarchy of effects leading to a purchase.

The assumption is that as the consumer moves from exposure to

attention, comprehension, message acceptance, and retention, the

probability the consumer will buy the advertised brands increases with

each step.

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EFFECTIVENESS TESTS STEPS IN PERSUATION PROCESS

Circulation Reach

Listener, Reader, Viewer Recognition

Recall, Checklists

Brand Attidudes, Purchase Intent

EXPOSURE

i ATTENTION

COMPREHENSION

MESSAGE ACCEPTANCE

Recall over Time RETENSION

mil

Figure 2.4: Methods of obtaining feedback in the decoding process

Source: McGuire, W.J. An information-Processing model of advertising

effectiveness, 1978:161.

The measurement of each of the steps in the decoding process will briefly

be discussed.

Exposure can be measured for print media by circulation and for

broadcast media by reach.

Attention can best be measured by recognition of an advertisement.

Comprehension is measured primarily by tests of recall of specific

points in the advertisement.

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Message acceptance is best measured by its impact on brand

attitudes or purchase intent.

Retention is measured by recall of the advertising message after a

period of time. Consumers are likely to forget messages over time unless

they are repeated (Assael 1992:613).

The measures in the diagram assume indirect feedback, that is, no direct

link between the five steps involved in the decoding process and

purchase behaviour.

2.11 Barriers to communications

Barriers can occur at each step in the communication process: at the

source, in encoding, in transmission, or with the receiver in decoding or in

action. According to William Wilkie's analysis (1986:242), there are five

potentially pitfalls, or gaps, in the advertising communication process.

The first two are source encoding problems, which result when the

advertiser selects a message strategy that is off-base with campaign

goals or when the actual ads and commercials are incongruent with the

message strategy. The third is a mechanical problem. It occurs when the

message is not delivered by the selected media as planned. The fourth

and fifth are receiver decoding problems. These results from the way the

receiver attends and processes advertising presented information.

Of the five communication pitfalls, the greatest barrier is the receiver. In

the course of normal business affairs, advertisers must expect to

encounter consumer defensiveness and indifference.

According to Krugman, Reid, Dunn & Barban (1994: 59) advertising

seeks out people, rarely do people seek out advertising. And whether

advertising finds them or they find advertising, they know what

advertising is trying to do: it is trying to persuade them to think, feel, or

act in a certain way. In psychological terms, people enter the advertising

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communication process with their perceptual defences up. To overcome

perceptual barriers, advertising must be designed and placed to grab the

audience's attention, to reduce miscomprehension, and to facilitate

memory.

Several studies have documented the fact that more frequent advertising

has resulted in less consumer attention to messages. Webb (1979:225)

found that attention and recall dropped off as the number of

advertisements increased.

2.12 Results of communications

The last step in the marketing communications process as discussed on

page 22 is, "Results of communications".

The figure shows that consumers may accept the message with or

without any action or consumers may reject it. Message acceptance is

due to an effective process of communicating product benefits that are

important to a target segment. Message rejection may be due to lack of

message credibility or believability, or it may be independent of message

content and reflect consumers' attitudes, past experiences, and beliefs.

(Assael 1992: 718)

From the advertiser's standpoint, the most desirable result of the

communication process is a purchase as a result of message acceptance.

Message acceptance may lead to a purchase or that consumers may

decide not to purchase for reasons other than the information in the

communication. Price and availability are obvious restrictions to

purchase.

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2. 1 3 Summary

In this chapter the marketing communication process and it's influence on

consumer behaviour has been discussed. The communication of

information and influence by the marketer and the receipt of marketing

information by the consumer are key elements when influencing

consumer behaviour.

The 5-W approach to communication has been discussed as well as the

four steps in the communications process. Subsequently the Source,

message, channel, receiver and destination elements in the advertising

communication system were discussed. Source factors play an important

role in persuasive communication and it is important to consider the

credibility and attractiveness of the source to the consumer to understand

the effects the source has on consumer behaviour. Message effects in

marketing were also discussed, there message complexity, emotional

versus rational appeals, fear appeals and humour appeals were discussed

as well as a list of do's and don'ts when using humour.

The chapter also looked at how the consumer process these marketing

communications. When consumers process these information they are

actually evaluating the source, the message and the media from multiple

sources rather than from one single source. In evaluating the message,

consumers develop cognitive responses that determine message

acceptance.

In the last step of the communications process the chapter dealt with the

results of communications. Consumers may accept or reject it and from

a marketer's standpoint, the most desirable result of the process is a

purchase as a result of message acceptance.

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Chapter 3: Perception as a factor in influencing consumer behaviour

3.1 Introduction

In the previous chapter the marketing communications process and its

influence on consumer behaviour was discussed. It was noted that there

were five requirements for marketing communications: a source, a

message, a means of transmitting the message, a receiver, and action by

the receiver. According to Aaker & Meyers (1987:293), advertising

communications always involves a perception process by the receiver

(consumer). This chapter focus thus on perception as a factor in

influencing consumer behaviour.

Individuals act and react on the basis of their perceptions, not on the

basis of objective reality. Thus, consumers' perceptions are much more

important to the marketer than their knowledge of objective reality, as

perceptions affect the consumer's actions, buying habits and leisure

habits. Because individuals make decisions and take actions based on

what they perceive to be reality, it is important that marketers understand

the whole notion of perception and its relate i concepts so that they can

more readily determine what influences consumers to buy (Du Plesis,

Rousseau & Blem, 1995:69).

3.2 Definition of consumer perception

In a broad sense, the topic of perception is concerned with the translation

from the external, physical world to the internal, mental world that

everybody experience. Wilkie (1990:230) define consumer perception as

the process of sensing, selecting, and interpreting consumer stimuli in the

external world. There are three basic functions that are contained in the

definition of perception viz.

- Sensing a stimulus in the external world.

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Selecting and attending to certain stimuli and not others.

Interpreting the stimuli and giving them "meaning".

3.3 A model of perception

Consumers have certain specific brand preferences because of the way

consumers perceive the available brands. Their perception and resulting

reaction will be influenced by a number of dynamic and changing factors,

either singly or in combination, and either when the stimulus occurs or

when reaction is required. Many variables will affect perception, the

most important variables are indicated in the following figure:

Figure 3.1: A model of perception

IMPULSE OBSERVATION

SELECTION ORGANISATION

REACTION

Behaviour or attitudes

Changes in environment: advertising, hunger, pain, noice and colours

The human senses: seeing, hearing, smelling, tasting and touching

Characteristics of the object such as size, colour and appeal

Characteristics of the observer such as needs, personal characteristics and previous experience

Selected impulses are organised and groeped in terms of figure-ground, closeness, similarity and principles

Human errors cause erroneous grouping e.g. stereotyping, projection and attribution

Source: Du Plesis, Rousseau & Blem (1995:70).

Subsequently the various elements in the model of perception viz.

impulse, observation, selection, organisation and reaction will be

discussed.

3.3.1 Impulse/Stimuli

Impulse or stimuli are any physical, visual, or verbal communications that

can influence an individual's response. The two most important types of

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stimuli influencing consumer behaviour are marketing and environmental

(social and cultural) influences.

Marketing stimuli are any communications or physical stimuli that are

designed to influence consumers. According to Assael (1992: 186) the

product and its components (package, contents, physical properties) are

primary (or intrinsic) stimuli. Communications designed to influence

consumer behaviour are secondary (or extrinsic) stimuli that represents

the product either through words, pictures, and symbolism or through

other stimuli associated with the product (price, store in which

purchased, effect of salesperson).

The key requirement in communicating secondary stimuli to consumers is

the development of a product concept. A product concept is a bundle of

product benefits that can be derived to the needs of a defined group of

consumers through messages, symbolism, and imagery. The product

concept represents the organisation of the secondary stimuli into a co-

ordinated product position that can be communicated to consumers

(Assael 1992: 187).

3.3.2 Observation

Observation is discussed in terms of sensation and perceptual selection.

Perceptual selection is influenced by both external as well as internal

factors. Internal factors such as previous experience, motivation and

personality are of primary importance.

3.3.2.1. Sensation

Observation, as the first step in the process of perception, begins or is

activated by some form of sensory input, which is directed at an

individual's sensory receptors. The basic units of stimuli that form the

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sensory inputs are sound, sight, taste, smell and touch. Complex sensory

inputs that include these basic units could, for example, be noisy crowds

on a pavement, the blowing of cars hooters etc. (Du Plesis, Rousseau &

Blem, 1995:71).

3.3.2.2. Perceptual selection

Consumers subconsciously exercise a great deal of selectivity regarding

the aspects of their environment (stimuli which they perceive (Schiffman

& Kanuk: 1991). An individual may look at some things, ignore others,

and turn away from yet others. Overall, people actually perceive only a

small fraction of the stimuli to which they are exposed. The selection of

stimuli depends on external factors such as the qualities of the products

on display, and internal factors such as previous experience, needs,

personality, expectations and attention. Each of these factors can serve

to increase or decrease the probability that the stimulus will be perceived,

and each can affect the consumer's selective exposure to and selective

awareness of the stimulus itself.

3.4 The influence of external factors in perceptual selection

Several characteristics of products and objects external to the consumer

will increase the likelihood of the message being selected and therefore

perceived. External factors include the size of the object or

advertisement, wording, intensity of colour, appeal, contrast with the

environment, movement against a steady background, repetition of

messages, novel aspects in messages that appeals to consumers. (Du

Plesis, Rousseau & Blem, 1995:74)

The size which an object must have to be perceived is proportional to the

initial size of the sensory input. Large sizes tend to attract greater

attention, but if the size of an advertisement or package is increased, one

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will find that a certain change in size will not produce an equal change in

attention. Objects placed near the centre of a consumer's visual field are

more likely to be noticed. Intensity or magnitude refers to the loudness

of sounds or the brightness of colours. Like an increase in size, an

increase in the intensity of the sensory input increases the attention it

receives by a certain percentage. Colour is used effectively by marketers

in many situations. Advertisements in colour attract more attention from

readers than those in black and white. A bright package usually catches

a consumer's attention more quickly than a dull package. Colours are

widely used for the symbolism in marketing. Yellow is the colour

associated with sunlight and projects warmth and vitality. Green conveys

coolness, nature and calmness, while red indicates excitement, sex, love

and rage (Du Plesis, Rousseau & Blem, 1995:75)

The contrast principle is used in many ways as a means of getting

customer attention. Sudden silence in TV-advertisements, drastic

changes in music, sudden changes from black-and-white to colour and

the way in which prices are announced and displayed all serve as

examples of the contrast principle in perception. When this principle is

used, it is often important to take note of customers expectations,

background factors and previous experience. Closely related to the

contrast principle is the principle of motion as a technique for getting

attention. One popular form of movement available to retailers is the

portable signboard, complete with sequential lighting, that gives the

illusion of movement. When moving objects are presented against a non-

moving background, their changes of being perceived are even greater.

Repetitions of slogans such as "the biggest helping hand in the land", "it

makes you think", "we are driven", "everything keeps going right"

attracts attention, although the slogan itself may not have any real

substance or contain relevant information (Du Plesis, Rousseau & Blem,

1995:76)

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3.5 The influence of internal factors in perceptual selection

The state of mind of the individual will also determine the attention and

selection of external stimuli. Internal factors such as previous experience

(learning, education, upbringing), motivation (needs) and personality are

of primary importance (Du Plesis, Rousseau & Blem, 1995:76).

3.5.1 Personality

Given a stimuli, and keeping other factors constant, two persons may

respond to it in different ways. The difference is often a function of their

personalities. The personality is in effect a processor or filter for

incoming stimuli. Consequently, persons may or may not perceive stimuli

in the same way, depending on the similarities and differences in their

personality make-up.

3.5.2 Motivation

People tend to perceive things they need or want; the stronger the need,

the greater the tendency to ignore the unrelated stimuli in the

environment. In general, there is a heightened awareness of stimuli that

are relevant to one's needs and interest, and a decreased awareness of

stimuli that are irrelevant to those needs. An individual's perceptual

process simply attunes itself more closely to those elements of the

environment that are important to that person (Schiffman & Kanuk,

1991)

As Maslow postulated many years ago, there seems to be a fairly

universal hierarchy of needs present in each individual i.e. Physiological

needs, safety & security needs, social needs, ego needs and self-

actualisation. According to his theory, the needs at the top of the

hierarchy will only become important to an individual once the needs at

the bottom are satisfied.

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3.5.3 Previous experience

Previous experience will determine expectations, brand loyalty and

attitudes towards products in general. In a marketing context, people

tend to perceive products and product attributes according to their own

expectations. On the other hand, stimuli that conflict sharply with

expectations often receive more attention than those that confirm to

expectations (Du Plesis, Rousseau & Blem, 1995:80).

3.6 The process of selective perception

Consumers perceive marketing stimuli selectively because each individual

is unique in the combination of his or her needs, attitudes, experiences,

and personal characteristics. According to Assael (1992:139) selective

perception means that the identical advertisement, package, or product

may be perceived very differently by two consumers. Such selective

perception operates for both high and low involvement purchases. In the

high involvement case, consumers selectively choose information that (1)

helps them evaluate brands that meet their needs and (2) conforms to

their beliefs and predisposition's. In the low involvement case,

consumers selectively screen out most information in an attempt to avoid

cognitive activity and informational clutter.

The model of complex decision making identified four steps in the

perceptual process - exposure, attention, comprehension, and retention.

The drive to find information that is consistent with prior beliefs results in

selectivity at each of these stages of the perceptual process (Assael,

1992:140).

Selective exposure occurs because people's beliefs influence what

they choose to listen to or read.

Selective attention results in greater awareness of supportive

information and avoidance of contradictory information.

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Selective comprehension involves interpreting information so that it is

consistent with beliefs and attitudes.

selective retention is the process of remembering the information that

is relevant to the decision and/or conforms to existing beliefs and

attitudes.

3.7 Perceptual organisation

The typical consumer may be exposed to more than 300 commercials

daily, it is apparent that some form of perceptual organisation of

disparate, and at times conflicting, stimuli is necessary. Perceptual

organisation means that consumers group information from various

sources into a meaningful whole to better comprehend it and act on it

(Assael, 1992:145).

The basic principles of perceptual organisation have been developed by

scientists of the Gestalt school of psychology. The primary principle is

that of organised wholes - the belief that people perceive entire objects

rather than just the separate parts of them (Wilkie, 1990: 255).

Principles of Gestalt psychology directly apply to marketing strategy,

since they provide a framework for interpreting advertising messages as

an integrated whole. The picture, the layout, the headline, and the

location in a magazine, for example, are not disparate elements but

interact to produce an overall reaction to the advertisement and to the

brand.

3.7.1 Figure and ground

The most basic and automatic organisational process is thought to be the

principle of figure and ground. Two properties of this process are: (1) the

figure appears to stand out in front of the more distant background and

(2) the figure is perceived to have form and be more substantial than the

ground. Marketers use the principle of figure-ground in advertising to call

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attention to important portions of the advertisement. The advertisers

must ensure that these advertisements are designed so that figure-ground

reversal does not take place, i.e. that the figure is not perceived as the

ground. An example of this would be a case in which an advertiser uses

a beautiful girl to draw attention to his product. The girl (ground) could

become figure in that consumers often remember the girl and not the

product itself (Du Plesis, Rousseau & Blem, 1995:82)

3.7.2 Perceptual grouping

Consumers are more likely to perceive a variety of information as chunks

rather than as separate units. Chunking or grouping information permits

consumers to evaluate one brand over another using a variety of

attributes. Principles of grouping that have emerged from Gestalt

psychology are proximity, similarity, and continuity (Assael, 1992:146):

3.7.3 Proximity

The tendency to group stimuli by proximity means that one object will be

associated with another because of its closeness to that object.

Advertisers uses principles of proximity by associating the product with

positive symbols and imagery that are clore to the product continuity

(Assael, 1992:148).

3.7.4 Continuity

Consumers also group stimuli into continuous and uninterrupted forms

rather than into discontinuous contours. Principles of continuity suggest

that the basic flow of the sales message should be continuous, moving

from brand identification to consumer benefits to a suggestion to

purchase the brand. The principle of continuity explains why motor car

manufacturers should not change their models to drastically. Consumers

get used to certain styles and find security and stability in the

continuation of basic forms of the products (Du Plesis, Rousseau & Blem,

1995:84)

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3.7.5 Similarity

Consumers also group products by similarity. The tendency is to group

the products together because of similarity in name, colour, and design.

The intention is to view the set of products as an integrated whole

(Assael, 1992:148).

3.7.6 Closure

Closure refers to a perceiver's tendency to fill in the missing elements

when a stimulus is incomplete. Consumers have a desire to form a

complete picture and derive a certain amount of satisfaction from

completing a message on their own. An advertiser can use the closure

process to make a campaign more efficient. A 60-second commercial

can, for example, be run several times so that the content has been

learned by a worthwhile percentage of the target audience. To combat

forgetting, a shorter spot could be used. A viewer of the short spot will

tend to visualise the omitted material. Thus, the material contained in the

60-second commercial will have been transmitted in a much shorter time.

Furthermore, the risk of boring the viewer with repeated showings is

reduced (Aaker & Myers, 1987:238).

3.8 Reaction (behaviour/attitudes)

The last step in the perception model is reaction. This may be in the

sense of behaviour from the consumer or a change in attitudes.

Du Plesis, Rousseau & Blem (1995:105) defines attitudes as a learned

disposition to respond in a consistently favourable or unfavourable

manner with respect to a given object, subject, idea or behaviour.

Three observations can be made relating to this definition to form a better

understanding of the concept. (1) The definition clearly points out that

an attitude is a "learned" experience, which implies that a person is not

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born with attitudes and that attitudes are actually formed during the

learning process. A person must experience the product, evaluate it

based on the available information and in view of his own perception,

form a specific attitude about the product. (2) The definition refers to a

favourable or unfavourable response. Because an attitude is a

predisposition, it can be assumed that it might influence consumers in

their behaviour. (3) This observation points to the characteristic of

attitudes of being "consistent".

This does not imply that attitude's do not change at all, nor that

marketers can not develop marketing strategies specifically designed to

change attitudes. The objective of the stimuli in the first stage of the

perception model is to alter behaviour or attitudes in the final stage.

3.9 Summary

Perception is the process of recognising, selecting, organising, and

interpreting stimuli in order to make sense of the world. Perceptions are

influenced by individual experiences and are therefore highly subjective.

This chapter has looked at a model of perception and then discussed the

various elements of the model viz. Impulse, observation, selection,

organisation and reaction.

External factors that influence perceptual selection includes the size of

the object or advertisement, wording, intensity of colour, appeal, contrast

with the environment, movement against a steady background and novel

messages that appeals to consumers. The perception process involves

attention and interpretation. It is influenced by stimulus characteristics,

such as copy size, intensity, and message, and by audience variables

such as needs, attitudes, values, and interests.

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Internal factors that influence perceptual selection includes factors such

as previous experience, motivation and personality.

Selective perception is made up of four components: selective exposure,

selective attention, selective comprehension, and selective retention. The

following is examples of perceptual organisation: figure and ground,

perceptual grouping, proximity, continuity, similarity and closure.

To understand the attention filter, it is instructive to determine why

people attend to advertisements. One motivation is to secure information

that has practical value to them in making decisions. In some

circumstances people will engage in an active search for information. A

second motivation is selective exposure, obtaining information that

supports attitudes or purchase decisions and avoiding non-supportive

information. People are attracted to advertisements that are interesting.

Two concepts from Gestalt psychology help marketers to understand to

understand the interpretation process. The first is that stimuli are

perceived as a whole. What is important in an advertisement

interpretation is the total impression that it leaves. The second is that an

individual has a cognitive drive toward an orderly cognitive configuration.

Closure is an example of the cognitive drive toward a familiar, regular,

and meaningful configuration. If a consumer realises that something is

missing from a picture his or her mind will add it.

Attitudes was defined as a learned disposition to consistently respond in

a favourable or unfavourable manner with respect to a given object,

subject, idea, or behaviour. The chapter then concluded that it is the

objective of marketers to influence consumer behaviour/attitudes through

providing impulses in the form of advertising campaigns.

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Chapter 4: Research: Evaluation of the influence of a marketing

campaign on consumer behaviour.

4.1 Introduction

On the 21st of April 1995 Telkom launched an advertising campaign to

coincide with the 1995 Rugby World Cup. The objective of the campaign

was to create awareness and to stimulate the telephone network i.e. to

encourage customers to make more frequent use of the telephone during

cheaper after hour times (Callmore Time).

Since the late eighties it has become apparent that there is a constant

decline in telephone usage. This was worrying to the company, specially,

in the face of such intense competition and the ever increasing total costs

for maintaining the company and the quality of its' products and services.

In essence the Callmore campaign was designed to counteract this

negative trend, and therefore served as a tool to inform customers about

the cheaper rates offered by Telkom, which gave them the option to

enjoy utilising their telephones without the uneasiness about paying

standard rate tariff's.

Previous telephone traffic patterns have shown that there is certain

existing call patterns. There is normal peak times and low times over

weekdays and weekends that doesn't vary. Although there has been

three different rate groups for years, consumer behaviour stuck to that

set patterns of behaviour. The three rate groups were branded as Peak

hours (From 07:00 till 18:00), Off-peak hours (From 18:00 till 20:00) and

After hours (From 20:00 till 07:00). Research results in the past has

shown that consumers showed a significant lack of awareness regarding

these cheaper after hour rates. Consumers only knew that it was

cheaper to call after eight in the evening, with a large proportion of

consumers still thinking that it is cheaper to call after nine in the

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evenings. Previous research has indicated that customers tend to take

the telephone for granted but assumed to be an emergency measure to be

used only for brief messages rather than the most personal form of

communication available.

Telkom subsequently decided to brand the cheaper after hour rates

generically and subsequently Callmore Time was created.

Figure 4.1: Weekly call rate structure featuring Callmore Time

00:00

07:00

13:00

18:00

20:00

24:00

Peak hours

Callmore Time

(Rate group 1) (Rate group 2)

Callmore Time

(Rate group 3)

An advertising campaign was developed for Callmore time with the

overall objective to stimulate usage of the telephone network.

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Secondary objectives of the campaign included:

0 To educate customers about the call rate structure;

To create awareness of Callmore time;

To illustrate the various emotional and personal benefits of calling and

To create awareness that a telephone call is value for money.

Subsequently Telkom's advertising agency was supplied with the

following brief to develop the campaign:

What is required:

A 30 second TV campaign including 10 second squeeze backs and 5

second ribbons which build on and use the Telkom corporate positioning

"Keeping you in touch with your world"

What do Telkom expect the advertising to do?

Encourage customers to "keep in touch with their personal worlds" more

often by calling during off-peak times.

What insight do we have about our audience?

They have access to a telephone but hat •e become complacent. They

often feel that they would like to, or should make a call, but they just

don't get around to it. "I'll do it later".

Furthermore, they feel that making all the calls they would like to, can be

an expensive habit and so may rationalise their inertia on the basis of

cost.

What single minded response do we want?

I could keep in touch with more people if I called during off-peak time.

What intrinsic qualities are the best stimulus to evoke this response?

The telephone is a wonderful tool to keep you in touch with your world.

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Calling off-peak hours can save you money compared to the normal rates.

Alternatively you can talk for longer for the same price.

Brand personality

Steel Magnolias - makes you laugh, makes you cry, gives you goose-

bumps or raises the hair on your neck.

Initial ideas to explore

It is so very special to keep in touch with your world Telkom suggests

you do it off-peak.

The Callmore campaign was developed and broke on the 21st April 1995.

The objective of this research is thus to evaluate the influence of a

marketing campaign on a set pattern of existing consumer behaviour for

after hour telephone traffic.

4.2. Research strategy

The research strategy was two-folded with two different methods of data

collection viz. secondary sources and the survey mode . Research that

was done by Market Research Africa during October 1995 is being

utilised for the purpose of this study. The researcher was involved in the

planning and execution of this research project.

Secondary sources viz. internal to Telkom is used to measure the

successfulness of altering existing conventional consumer behaviour and

to measure the increase in the usage rate of an average telephone

customer during Callmore time. This will meet the primary objectives of

this study. This will take on the form of comparing telephone traffic

patterns of consumers before, during and after the marketing campaign.

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Telephone traffic is being measured per units known as Erlang (named

after a Danish scientist A.K. Erlang 1878-1929). The formula for traffic

is:

Traffic (erl) = Number of calls x Mean holding time

3600 seconds

Where:

The number of calls is the amount of successful calls being made in

one second in an exchange;

mean holding time is the length of the call measured in seconds and

3600 seconds is the number of seconds in one hour.

In another method of data collection viz. the survey mode telephonic

interviews was done amongst adults in Gauteng. Research conducted by

Market Research Africa for Telkom will be used to meet the secondary

objectives of this study.

Telkom approached Market Research Africa to conduct a telephonic

survey among adults in Gauteng, to establish whether they could recall

and correctly associate Telkom's "Callmore" TV advertisement.

A questionnaire was developed for the telephonic interviews that without

the demographic questions featured eleven questions that was asked to

the respondents. The questionnaire is attached as Appendix 14.

4.3 Research objectives for the telephonic interviews (survey mode)

The primary research objectives were to establish whether the "Callmore"

advert is known and correctly identified with Telkom and the "Callmore"

concept.

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Specific research objectives that were set to meet the primary research

objective were:

Determine the recall of previous exposure to briefly described

"Callmore" advert

Determine the company associated with briefly described

"Callmore" advert

Determine the perceived message of briefly described "Callmore"

advert

Determine the recall of previous exposure to fully described

"Callmore" advert

Determine the company associated with fully described "Callmore"

advert and

Determine the perception of the meaning of the world "Callmore".

4.4 Research approach

4.4.1 Universe

The universe for this survey was defined as adults, 16 years and older,

living in Gauteng (Johannesburg, Pretoria, Reef and Vaal) and who owns

a telephone.

4.4.2 Sample

A random sample of 300 telephone numbers was drawn in Gauteng by

taking every n-th telephone number from MRA's computerised list of

telephone numbers. For every telephone number that was drawn, two

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additional telephone numbers in the same exchange code areas were

drawn as substitutes.

At every selected telephone number, the person that had to be

interviewed was determined by listing all the adults over 16, on a pre-

coded grid. This assisted in reducing interviewer bias in the selection of

the respondents. Two calls were made, on different days of the week

and at different times of the day to establish contact with the pre-

selected respondent, before substituting.

Based on the incidence of households with telephones the following

sample frame was followed.

Table 4.2: Sample Frame

Households with telephones

in Gauteng

Number of interviews

Drawn Actually compl.

White 576 000 59% 180 175

Black 351 000 36% 100 102

Coloured 30 000 3% 10 11

Indian 25 000 2% 10 12

Total 982 000 100% 300 300

The final sample differs slightly from the original sample as no

substitution was made for "wrong race" within areas, i.e. if telephone

numbers were selected in traditional white suburbs and the selected

household had black respondents the interview was still completed.

4.4.3 Fieldwork

Telephonic interviews were conducted on the evenings of 16, 17 and 18

October 1995 by experienced and trained interviewers in the employ of

Market Research Africa under the guidance of field supervisors.

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A minimum of 1 5% checkbacks on the work of each interviewer, is built

into the research process to ensure accuracy and authenticity.

4.5: Research results

The following results were obtained via the two methods:

4.5.1. Summary of the main findings from secondary sources (telephone

traffic patterns).

Appendix 1 - 8 give a detailed analysis of telephone traffic during the Pre

Callmore as well as the Post Callmore campaign on the various day of

the week.

A breakdown of the appendixes is as follow:

Appendix 1: Callmore comparison on a Monday:

Telephone traffic Pre Callmore as on 16 January 1 995

Telephone traffic Post Callmore as on 5 June 1995

Appendix 2: Callmore comparison on a Tuesday:

Telephone traffic Pre Callmore as on 17 January 1 995

Telephone traffic Post Callmore as on 6 June 1995

Appendix 3: Callmore comparison on a Wednesday:

Telephone traffic Pre Callmore as on 18 January 1 995

Telephone traffic Post Callmore as on 7 June 1 995

Appendix 4: Callmore comparison on a Thursday:

Telephone traffic Pre Callmore as on 19 January 1 995

Telephone traffic Post Callmore as on 8 June 1 995

Appendix 5: Callmore comparison on a Friday:

Telephone traffic Pre Callmore as on 20 January 1 995

Telephone traffic Post Callmore as on 9 June 1 995

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Appendix 6: Callmore comparison on a Saturday:

Telephone traffic Pre Callmore as on 21 January 1995

Telephone traffic Post Callmore as on 10 June 1995

Appendix 7: Callmore comparison on a Sunday:

Telephone traffic Pre Callmore as on 22 January 1995

Telephone traffic Post Callmore as on 11 June 1995

Appendix 8: Callmore comparison for two months prior to the campaign

(March & April 1995) as well as during the campaign May 1995.

It is evident from Appendix 1 - 7 that there has been a remarkable shift in

consumer dialling behaviour especially during the Callmore period. The

trend for each day is basically similar to each other with the shift in

dialling behaviour starting straight after six in evenings. Whereas in the

past their has been a steady built up towards the peak dialling area after

20:00 in the evenings, the results show that there is no two peak areas:

One significant peak straight after 18:00 (that was never there before)

and then still a peak after 20:00 but not as big as before.

This can be ascribed to the fact that customers have migrated from Rate

group 3 to Rate Group 2. (Refer table: 4.1: Weekly call rate structure

featuring Callmore Time.) The following call statistics for the different

rate groups taken over the six day period (The data for Monday was

corrupted and therefore not included in the table) clearly indicates the

results of this call migration:

Table 4.3: CALLMORE COMPARISON: CALL MIGRATION FROM RATE

GROUP 3 TO RATE GROUP 2

Amount of calls made

Rate 2 Tue Wed Thu Fri Sat Sun

June 41 985 45 036 41 355 39793 32 677 41 718

Jan 37 794 37 046 35 621 34 853 28 313 34 394

%

Increase

10,85% 21,57% 16,10% 14,17% 15,41% 21,29%

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Amount of calls made

Rate 3 Tue Wed Thu Fri Sat Sun

June 45 905 46 435 47 144 39 722 28 465 42 063

Jan 51 622 49 014 48 608 42 068 31 012 53 042

%

Increase

-11,07% -5,26% -3,01% -5,58% -8,21% -20,70%

If averages is taken, then tariff group 2 has had an average increase of

16,57% calls more being made after 18:00, while there was an decrease

of 8,97% in calls being made after 20:00.

This leads to the conclusion that although a migration of traffic did take

place from tariff group 3 to tariff group 2, there was also a net gain in the

amount of calls made during the campaign of 7,6%.

This means that there was an increase of 7,6% in the usage of

telephones during the campaign.

From Appendix 8 [Callmore comparison for two months prior to the

campaign (March & April 1995) as well as during the campaign May

1995.) the result of the campaign can clearly be seen. During the month

of May the peak at 20:00 was considerably lower than the previous two

months, while at the same time the 18:00 peak was higher and ensured a

more fluent distribution of calls during Callmore time.

4.5.2. Summary of the main findings from the telephonic interviews

The main findings from the telephonic interviews are separated into two

classifications viz. Response to briefly described advertisement to the

respondents and Response to fully described advertisement to the

respondents. The classifications under each of these responses include

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the recall of advertisement, companies associated with advertisement,

and the perceived message of the advertisement.

4.5.2.1 Response to briefly described advertisement to the respondents.

Recall of advertisement

The following short description was read to respondents and they were

asked whether they recalled seeing this advertisement:

"You see bikers in leather jackets down an open road"

Just over 55% claimed that they had seen this advertisement before

(56% of whites and 54% of blacks, coloureds and Indians).

Companies associated with advertisement

Almost 4 in every 10 respondents who indicated that they had seen this

advert before did not know what company to associate the advert with

(36%). The balance of respondents mainly associated the advert Beacon

chocolates (17%) and Gill Anti-dandruff (15%). Only one in every 10

respondents who recalled the advert, associated it with Telkom (11%).

Amongst whites the assoc!ation of Gill anti-dandruff (22%) and Beacon

(21 %) was even stronger. Over half of the black, coloured and Indian

respondents who claimed to have seen the advert before did not know

which company to associate the advert with (53%), whilst 13% said that

it was an advert for Beacon chocolate.

Perceived message

Most of respondents who claimed to have seen the advert before, did not

know (24%) or could not remember (32%) what message the

advertisement was trying to put across. Some respondents said that it

was a message to stop dandruff (8%), whilst others said it was an advert

about eating pleasant chocolates (7%). Only 6% correctly identified the

message as being "you can call more without paying more after 18:00".

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4.5.2.2 Response to fully described advertisement to the respondents

Recall of advertisement

A fuller description was now read to respondents and they were asked

whether they recall seeing this advertisement:

" You can see an open road, motorbikes, telephone poles, etc. See

a man with long hair and a red beard look at his watch, it is just

before 18:00. They stop at a roadside cafe and the biker with the

beard makes a telephone call to his mother. It is 18:00"

half (51 %) claimed that they have seen this advertisement before. This

was especially the case amongst white respondents (59%).

Companies associated with advert

The association of the advert with Telkom was now significantly higher

(57%) amongst those that claim to have seen the ad before. Only 20%

did not know which company to associate the advert with.

Amongst whites the association of Telkom was again even higher (64%)

whilst just under half of the black, coloured and Indian respondents who

claimed to have seen the advert before associated the advert with Telkom

(46%).

Perceived message

A large proportion of respondents who claimed to have seen the advert

before, still did not know (10%) or could not remember (20%) what

message the advertisement was trying to put across. There were

however now 27% who said that the message was that ""you can call

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more without paying more after 18:00" with a further 8% saying that it

was an advert for Telkom in general.

Perception of the meaning of the word Cal!more

Three in every 10m respondents claim that they did not know what

"Callmore" means (33%), with 20% correctly indicated that it meant that

you can "call more without paying more after 18:00". Other mentions

were that you can "phone again/call as many times as you want" (12%)

and "call more and more/make more calls" (8%) - these mentions were

especially high amongst the black, coloured and Indian respondents.

Appendix 9 - 14 give the results of the telephonic interviews with the

respondents.

A breakdown of the appendixes is as follow:

Appendix 9: Recall of briefly described adverts.

Base: All informants

Appendix 10: Companies associated with adverts

Base: All who recall briefly described ad.

Appendix 11:

Perceived message put across by advert.

Base: All who recall briefly described ad.

Appendix 12:

Recall of fully described adverts.

Base: All informants

Appendix 13: Companies associated with adverts.

Base: All who recall fully described ad.

Appendix 14: Perceived message put across by advert.

Base: All who recall fully described ad.

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Chapter 5: Conclusions and recommendations

The objective of the research was to determine the influence of a

marketing campaign on a set pattern of existing consumer behaviour for a

service in the telecommunications industry. Primary as well as secondary

objectives were determined. This chapter will draw conclusions from the

research results in chapter four.

Primary objective: To measure the successfulness of altering existing

conventional consumer behaviour.

Existing conventional consumer behaviour has been altered. it is noted in

the research results that an interesting migration of traffic distribution has

taken place in as much as the traditional 20:00 cheapest rate period has

decreased in volume, with a corresponding increase in the 18:00 traffic.

The pre Callmore traffic pattern saw an exponential growth in traffic

across the 18:00 to 20:00 time band whereas the post Callmore graph

indicates a marked rise in 18:00 traffic, a constant 19:00 traffic and a

reduced 20:00 traffic.

Of special interest on Saturday is the fact that the Callmore

advertisement seems to be misunderstood by the general public. The

Callmore advert indicates that calls are cheaper from 13:00 on Saturday

and yet the bulk of calls are made on or around the 18:00 period. The

shift in traffic on Sunday also appears to be significant. This

phenomenon sends out a clear signal, that the campaign served to

confuse the customers in that cheaper rates were anticipated at 18:00

while this rate was applicable from Saturday afternoon at 13:00 through

Monday morning 07:00.

The Callmore campaign appears to have had an effect on dialling habits of

customers.

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Primary objective: To measure the increase in the usage rate of an

average telephone customer during cheaper after hour rates (Callmore

Time).

From Table 4.3: Callmore comparison: Call migration from rate group 3

to rate groep 2, it was concluded that although a migration of traffic did

take place, there was a net gain in the amount of calls made during the

campaign of 7,6%.

This means that there was an increase of 7,6% in the usage of

telephones during the Callmore Time period.

Secondary objectives included:

- The measurement of the marketing campaign to establish whether the

campaign is known and correctly identified with Telkom as well as the

"Callmore" concept.

Specific objectives are:

To measure the recall of the marketing campaign;

- To measure company awareness of the marketing campaign;

- To determine the perceived message of the marketing campaign and

The perception of the brand used in the marketing campaign in the

market place.

The secondary objectives have however been less successful. The

respondents have been asked if they recall seeing the advertisement, do

they know what company to associate with the advertisement and what

is the perceived message. Respondents were asked these questions after

a briefly described as well as fully described advertisement.

The recall for the briefly described advertisement was 55% and for the

fully described advertisement 51%. When asking however which

companies are associated with the advertisement it was clear that this

recall percentages are incorrect due to respondents claiming that they

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recall the specific advertisement but in reality confusing it with

advertisements for other products.

The company awareness for Telkom's Callmore advert was low, there is

a significant level of confusion of the Callmore advert with the Beacon

chocolate and Gill anti-dandruff advert and to a lesser extent Steers. This

can be ascribed to the fact that these companies also ran advertisements

which contained similar scenes as that of Callmore. This might have had

a significant impact when establishing the company associated with the

Callmore advertisement among the respondents.

Recall for the briefly described advertisement was low (one in ten

respondents) but for the fully described advertisement only 20% of the

respondents did not know which company to associate the advertisement

with.

Another problem was the apparent lack of understanding about the

message conveyed. Some respondents had no idea what "Callmore"

meant and the exact time periods within which the Callmore rates apply.

When briefly described only 6% of the respondents correctly identified

the perceived message as being "you can call more without paying more

after 18:00". When fully described this percentage rise to 27% with a

further 8% saying that it was an advert for Telkom in general.

The perception of the Callmore brand was also low. Only 20% of the

respondents correctly indicated that the meaning of the word Callmore is

that you can "call more without paying more after 18:00". Amongst the

black, coloured and Indian respondents there were significant

misinterpretations of to the meaning of the word Callmore.

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5.2 Recommendations

The campaign was successful and has succeeded in it's objectives.

Although awareness and perceptions of the Callmore concept could have

been considerably higher, the effect of the campaign on consumer dialling

behaviour was success in enough on its own. There is however aspects

that can be improved and it must be kept in mind that consumer

behaviour and perceptions are not altered or changed overnight. The

barriers to communications must be overcome, and as discussed in the

theory "Advertising seeks out people, rarely do people seek out

advertising. And whether advertising finds them or they find advertising,

they know what advertising is trying to do: it is trying to persuade them

to think, feel or act in a certain way..."

This was however the launch of a new marketing campaign and the

following recommendations are made when planning the follow up

campaign:

1. Investigate the possibility of introducing one standard Callmore time

period. The fact that there were still two rate group bands within the

Callmore time period was confusing to customers. Customers also made

allegations that the campaign was misleading due to the fact that it

advertised that it is cheaper to phone after six, while there was still a

cheaper rate band after eight.

Another factor contributing to the confusion was the fact that it was also

cheaper to phone after 13:00 on a Saturday through to 07:00 on a

Monday. Customers did not realise that thus the reason for the traffic

peaking during 18:00 on a Saturday and Sunday. The Callmore time

period valid during weekdays must also be valid over weekends.

The influence of a marketing campaign on consumer behaviour: A case study

66

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2. The Callmore concept, although low in awareness, is already accepted

and recognised in the market. The name Callmore, possesses the

following important characteristics:

Distinctiveness. It is unique and the service supplier can

immediately be identified, especially when advertised as "Telkom's

Callmore Time"

Relevance. it conveys the nature of the service.

Memorability. It can be understood, used , and recalled with

ease.

The theme of the campaign can vary from the motorcycle riders to

something else but the perception of the word Callmore, viz. "You can

call more, without paying more" is already partly established in the

market place, to change this because awareness and recall was not high

enough will be a very expensive mistake. More focus can be placed on

the internal factors that influence perceptual selection and specifically on

motivation (need) of consumers. Because of economical tough times,

everybody wants to save money in some way or another - the fact that

you can call more, without paying more during Callmore Time must be

emphasised during future campaigns and an integral part of the campaign.

When formulating the new campaign elements of external perceptual

organisation must also be built into the campaign, it is my

recommendation that more use must be made of closure.

Equity can be derived by following the period after the initial launch of a

advertisement with shorter burst of elements taken from the initial

element. For example: A 10 second flash of the biker looking at his

watch during the 18;00 and 20:00 news preview should have been an

excellent example of closure during this campaign.

The influence of a marketing campaign on consumer behaviour: A case study

67

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The influence of size, wording, intensity of colour and contrast with the

environment must also be kept in mind for purposes of enhancing

perceptual selection amongst he target market in future campaigns.

In future and if possible try and avoid producing commercials that

might have similar scenes or themes to other commercials, which may be

flighted simultaneously and or be confusing in nature. The fact that three

similar advertisements featured "bikers" was part of the clutter that

negatively influenced on the recall.

Although the marketing communication process was successful in

altering the conventional consumer behaviour in this research it is

important to follow the campaign up with continuous advertising.

Perceptions and behaviour can not be changed within a one month period

and it is important to maintain that level of awareness in the market place

or the advertiser may find that consumers will revert back to their

previous level of consumer behaviour.

The influence of a marketing campaign on consumer behaviour: A case study

68

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5. Bibliography

5.1 Sources consulted

Aaker, D. A. & Myers, J.G. 1987. Advertising management. Third

edition. Prentice-Hall International (UK) Limited, London

AMS Market Intelligence (Pty) LTD. 1993. A strategic analysis of

Telkom's positioning in the South African telecommunications industry.

Unpublished.

Assael, H. 1992. Consumer behaviour and marketing action. Fourth

edition. Boston: PWS Kent Publishing.

Bateman, L.R. 1996 "Effects of marketing campaigns on subscriber

behaviour" Conference Paper. Technology Strategies, Teletraffic,

Telkom SA Limited

Chevins, A.C. 1981. A little humour carefully used can work wonders.

Journal of broadcasting, May 18.

Du Plessis, P.J. 1986. Verbruikersgedrag by die aankoop van 'n

motorvoertuig. Unpublished DBL-thesis. Pretoria: University of South

Africa.

Du Plesis, P.J., Rousseau, G.G. and Blem, N.H. 1995 Buyer behaviour:

Strategic marketing applications. First Edition PG&A, Wetton, Cape

Hawkins, D.I., Best, R.J. and Coney, K.A. 1992. Consumer behaviour:

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Kotler, P. 1991. Marketing management analysis, planning,

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Krugman, D.M., Reid, L.N., Dunn, S. W., & Barban, A.M. 1994.

Advertising: Its role in modern marketing. Eigth Edition. The Dryden

Press, Harcourt Brace College Publishers

Market Research Africa, Project advert. Prepared for Telkom SA.

October 1995

McCracken, G. "Who is the celebrity Endorser? Cultural Fundations of the

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310-321.

McGuire, W.J. "An information-processing model of advertising

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sciences in marketing. New York: 'Ronald/Wiley, 1987, 156-180.

McNeal. J.U. 1973. An introduction to consumer behaviour. London:

John Wiley

McNulty, A. "Telkom - Global pressures force change." Financial Mail,

22-24, August 1995.

Mellot, D.W. 1983. Fundamentals of consumer behaviour. Oklahoma:

Penn Well Publishing Company

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Publishing Company, New York

Murthy, J. 1990. Brand strategy. Director Books.

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Olney, T.J., Holbrook, M.B. & Batra, R. "Consumer responses to

advertising: The effects of advertising content, emotions, and attitude

toward the advertisement on viewing time". Journal of Marketing

Research. March 1991: 440-453.

Peter, J.P., Olson, J.C. 1993. Consumer behaviour and marketing

strategy. Third Edition. Homewood, Boston: Irwin.

Robertson, T.S., Zielinski, J. and Ward, S. 1984. Consumer behaviour.

Illinois: Scott, Foresman & Co.

Schiffman, L.G. and Kanuk, L.L. 1991. Consumer behaviour. Fourth

Edition. Englewood Cliffs, New Jersey.

Webb, P.H. "Consumer Initial Processing in a Difficult Media

Environment" Journal of Consumer Research. December 1979, p. 225-

236

Wilkie, W.L. 1986. Consumer behaviour. Second Edition. New York:

Wiley

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Appendix 15: PROJECT ADVERT E.NO : 0633 allo :

AREA CODE/ AREA KODE n

FINAL RESPONDENT'S NAME FINALE INFORMANT SE NAAM

FINAL RESPONDENTS'S TELEPHONE NUMBER FINALE INFORMANT SE TELEFOONNOMMER

2 SUBSTITUTE / PLAASVERVANGER

YES/ JA

ASK FOR EACH PERSON WORKING : Where does work?

V1R ELKE PERSOON WAT WERK VRA : Wear werk

-0

a) The media - press, radio. TV 23-Y

Die media - pars, radio. TV b) Advertising agency -X

Reiderne agentskap c) Market research company

Marknavorsingsmaatslcappy IF YES TO ANY OF THE ABOVE, CLOSE INTERVIEW AND SUBSTITUTE

MONTH DAY

Jan Feb Mar

Apr May Jun

16- 1 Jul -7 -2 Aug -8

-3 Sept -9

-4 Oct -0

-5 Nov -X

-6 Dec -Y

CODED BY :

I hereby certify that this is a true interview.

Ek verklaar dat hierdie 'n ware onderhoud is.

14- 15-

DATE OF STUDY INTERVIEWER SIGNATURE :

Male/Manlik FemaleNroulik

26-Y -x

-5 -6

B HOME

27-Y -X -0

-2 -3

Interviewer

Number

LANGUAGE

English Afrikaans Zulu

Xhosa Venda Tsonga

North Sotho South Sotho Tswana

OCTOBER 1995

19 20 21 22

Other (STATE) • Ander (NOEM -7

INTRODUCTION : Good moming/afternoon/evening. My name is I am from Market Research Africa, a company that specialises in doing surveys on various products end subjects (SHOW IDENTITY CARD). At present we are doing a survey on ADVERTISING and would greatly appreciate your views on the sutiect.

INLEIDING : Gosiemore/middag/naand. My naarn is Ek verteenwoordg Market Research Africa, 'n maatskappy wet spesialiseer In navasing oor verskeie produlcte en onderwerpe (TOON IDENTITEITSKAART). Die huidge opname gaan oor ADVERTENSIES en ons sal u meting oor de cncierwerp baie viaardeer.

1 ORIGINAL / OOPSPRONKUKE

3 SUBSTITUTE / PLAASVERVANGER

r■;■••-■.•■••...I•■•■•■•■•■■•■■■II■1..A..M.IIw•Ww• •,.........■•7

START OF QUESTIONS •

A. How many people in this household work? Hoeveel manse in hierdie huishowing werk?

. In this household I have to interview a FEMALE Can you please tell me how many FEMALES 18 years or older live in this

household?

ENCIRCLE UNDER COWMN W BELOW

RACE 0

SEX OF FINAL RESPONDENT/GESLAG VAN FINALE RESPONDENT

B. Can you please tell me what is your home language, that is the language that you usually speak at home? RECORD ONE ANSWER UNDER '13 HOME' BELOW Iron u asseblief vin my se wat u huistaal is, dit is die teal wat u

persoonlik by die huis praat? NOTEER EEN ANTWOORD ONDER 'B HOME HIERONDER

17-Y

-X -0 -1

-2

Personal visit Phone call Letter Accompanied by

Sent back to field

-5 -5 -8 -6

1 7-9 ORIGINAL SAMPLE

-9 -9

DETAILS OF CALLS 1st 2nd call call CHECKED BACK BY :

OFFICE ONLY : NET KANTOOR •

DAY OF WEEK

Monday Tuesday Wednesday

Thursday Friday Saturday/Sunday

Y 09-Y -x -0

-1 -1

-2 -2 -3

Not sent back to field -3 TIME OF DAY

Morning (9am - 1pm) Afternoon (1pm - 5pm) Evening (5pm - 8pm) Evening (6pm & later)

NO OF ERRORS

-8 TYPE OF ERROR :

18- SUCCESSFUL CALL

Yes No

Time

OUESTIONS WITH ERRORS

Personal data Omission (LOP.) Incorrect O.

Contradiction Unnecessary O.

SUBSTITUTE

BEST DAY AND TIME FOR RECALL

Day

TIME TAKEN FOR FINAL INTERVIEW

NUMBER OF CALLS

10-

MINUTES

Column A Number in

home 24-0

-2

-3

-4

-5

PERSON TO BE INTERVIEWED IS ENCIRCLED (COWMN A) OPPOSITE THE NUMBER IN HOME

Oldest I 2nd Oldest

3rd Oldest

4th Oldest

5th Oldest

1 . . _

- -

1 2

1 2 3 4

1 1 2 3 4 5 1

DATE OF FINAL INTERVIEW

EDITED BY

White/Nit Black/Swart Coroured/I0eurling Indian/Indier

1 25-Y

-X -0 -1

Page 88: The influence of a marketing campaign on consumer ...

32-Y

-X

Yes

No

GAAN NA V.6

Ja

Nee

Mens kan meer bel sonder om meer to betaal no 18:00

Bel jou moeder

Kekkelkas/spesiale telefoon

I a. •

Do you RECORD

have a TV at home and is it in a working condition? ONE ANSWER BELOW

1 a. •

Het u TV by die huis en is dit in 'n werkende NOTEER EEN ANTWOORD HIERONDER

toestand?

Yes, have a TV and it is working 28-Y Jo,' het .'n TV en dit werk

Nee, het nie 'n TV nie No, do not have a TV -X

GO TO 0.1b ..GAAN NA V.lb

1 b. Do you have regular access to a TV?

Yes

1 b. Het u gereelde toegang tot 'n TV?

Ja

Nee No

CLOSE INTERVIEW AND SUBSTITUTE

SLUIT ONDERHOUD EN VERVANG

2.

• Which TV advert, if any, that you have seen first comes to mind? RECORD VERBATIM BELOW

2. Wetter TV advertensie, indien enige, wet u gesien het, kan u eerste aan dink? NOTEER PRESIESE WOORDE HIERONDER

3. I am now going to read out a description of a TV advertisement. Please tell me whether you recall seeing this advert or not? READ OUT

"You see bikers in leather jackets driving down an open road."

RECORD ONE ANSWER BELOW

3. Ek gaan nou 'n beskrywing voodoos van 'n TV advertensie. Se asseblief vir my of u kan onthou dat u hierdie advertensie gesien het, of nie? LEES VOOR

"Mens sien motorfietsryers in leerbaadjies wet op 'n oop pad ry."

NOTEER EEN ANTWOORD HIERONDER

SKIP TO Q.6

IF "YES" IN Q.3, ASK :- • 4. Please tell me for which company do you think this advert 4.

is? DO NOT PROMPT •

Beacon chocolates 33-Y Gill Anti-dandruff -X MTN -O

Steers -1 Telkom -2 Vodacorn -3

Other (PLEASE STATE) -4

Don't know -5

INDIEN "JA" BY V.3, VRA :- Se asseblief vir my vir wetter maatskappy dink u is hierdie advertensie? MOENIE POLS NIE

Beacon sjokolade Gill Skilferwerende MTN

Steers Telkom Vodacom

Ander (NOEM ASSEBLIEF)

Weet nie

5. Can you remember what message the advertisement was trying to put across?

5.

• DO NOT READ OUT •

• PROBE THOROUGHLY •

• RECORD ONE ANSWER BELOW •

You can call more without paying more after 18:00 34-Y Phone your mother -X Chatterbox/special phone -0

Telkom in general -1 Message not clear -2 Steers restaurant -3

Misleading -4 Save time -5 Other (STATE) -6

Don't know -7 Can't remember -8

35-

Kan u onthou wetter boodskap die advertensie probeer

uitdra het?

MOENIE VOORLEES NIE

POLS DEEGLIK

NOTEER EEN ANTWOORD HIERONDER

Telkom in die algemeen

Boodskap is nie duidelik nie

Steers restourant

Misleidend

Spaar tyd

Ander (NOEM ASSEBLIEF)

Weet nie

Kan nie onthou nie

t.0630 2.

Page 89: The influence of a marketing campaign on consumer ...

Yes

No

Ja

Nee

36-Y

-X

SKIP TO Q.10 GAAN NA V.10

-1 -2 -3

Steers Telkom Vodacom

-5 Weet nie Don't know

18:00

38-Y Mens ken meer bel sonder om meer te betaal na -X Bel jou moeder

-O Kekkelkes/spesiale telefoon

-7 -8

39-

Weet nie Kan nie onthou nie

40-Y

-X

-0

You can call more without paying more after 18:00

Nothing

Other (STATE)

Can't say/Don't know -1 Kan nie se nie/Weet nie

3.

6. I am now going to read out a description of another TV advertisement. Please tell me whether you recall seeing this advert or not?

READ OUT

"You can see an open road, motorbikes, telephone poles, etc. See a man with long hair and a red beard look at his watch, it is just before 18:00. They stop at a roadside café and the biker with the beard makes a telephone call to his mother. It is 18:00"

RECORD ONE ANSWER BELOW

I

6. Ek germ nou 'n beskrywing voorlees van nog 'n TV advertensie. S6 asseblief vir my of u kan onthou dat u hierdie advertensie gesien het, of nie?

LEES VOOR

"Mena sien 'n oop pad, motorfietse, telefooripale, ens. Sien 'n man met lang hare en 'n rooi beard kyk na sy horlosie, dit is net voor 18:00. Hulle hou stil by 'n padkafee en die motorfietsryer met die beard meek 'n telefoonoproep na sy moeder. Dit is 18:00"

NOTEER EEN ANTWOORD HIERONDER

IF "YES" IN Q.6, ASK :-

Please tell me for which company do you think this advert is?

DO NOT PROMPT

Beacon chocolates Gill Anti-dandruff MTN

Steers Telkom Vodacom

Other (PLEASE STATE)

INDIEN "JA" BY V.6, VRA :-

7. S6 asseblief vir my vir wetter meatskappy dink u is hierdie advertensie?

MOENIE POLS NIE

Beacon sjokolade Gill Skilferwerende MTN

-4 Ander (NOEM ASSEBLIEF)

37-Y -X -O

Can you remember what message the advertisement was trying to put across? DO NOT READ OUT

PROBE THOROUGHLY

RECORD ONE ANSWER BELOW

Kan u onthou wetter boodskap die advertensie probeer uitdra het? MOENIE VOORLEES NIE

POLS DEEGLIK

NOTEER EEN ANTWOORD HIERONDER

8.

You can call more without paying more after 18:00 Phone your mother Chatterbox/special phone

Telkom in general Message not clear Steers restaurant

Misleading Save time Other (STATE)

Don't know

Can't remember

-1 Telkom in die algemeen

-2 Boodskap is nie duidelik nie

-3 Steers restaurant

-4 Misleidend

-5 Spaar tyd

-6 Ander (NOEM ASSEBLIEF)

9. What, if anything, does the word "Callmore" mean to you?

RECORD ONE ANSWER

9. Wet, indien enigiets, beteken die woord "Callmore" vir u?

NOTEER EEN ANTWOORD

Mens kan meer bel sonder om meer te betaal na 18:00

Niks

Ander (NOEM ASSEBLIEF)

Page 90: The influence of a marketing campaign on consumer ...

t.063.3 4.

10.

Please tell me into which of the following age categories do you fall?

READ OUT

10.

S6 asseblief vir my in wetter van die volgende ouderdomskategorieo val u?

LEES VOOR

16 - 24 41-Y 16 - 24

25 - 34 -X 25 - 34

35 - 49 -0 35 - 49

50 + -1 50 +

11. What is the highest level of education you personally have achieved?

11. Wat is die hoogste opvoedkundige vlak wet u persoonlik behaal het?

• READ OUT LEES VOOR

• RECORD ONE ANSWER • NOTEER EEN ANTWOORD

J No schooling 42-Y J Geen skool K Some primary school -X K Laerskool gedeeltelik L Primary school completed -0 L Laerskool voltooi

M Some high school -1 M Hoerskool gedeeltelik N High school completed -2 N Hoerskool voltooi

O Some university . -3 0 Universiteit gedeeltelik P University completed -4 P Universiteit voltooi Q Post graduate -5 Q Nagraadse studie

Other post metric qualifications Ander kwalifikesies na matriek

Professional -6 Professioneel Technical -7 Tegnies Secretarial -8 Sekretarieel Other -9 Ander

In order to ensure accuracy in a survey of this nature, it is necessary to check back on a small percentage of the completed questionnaires. Could you therefore, please give me your postal address?

Ten einde akkuraatheid van 'n ondersoek van hierdie acrd te verseker, is dit nodig om op 'n klein persentasie van die voltooide vraelyste 'n herhalingstoets uit te voer. Sal u asseblief vir my se wet u posadres is?

THANK RESPONDENT AND CLOSE INTERVIEW BEDANK RESPONDENT EN SLUIT ONDERHOUD