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How does advertising influence user behavior?

Asked at Rakuten
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There are two types of advertisements viz. informational and transformational

Informational- Focuses on the product, explains product characterstics

Transformational- Irrational- Focuses on the consumer. Creates a unique experience for each customer by providing him with an advertisements that address their needs and wants. Usually used when new products are launched

Role of advertising:

1) Problem recoginition- Creating needs and wants with innovative and new products in the market

2) Information search- Create a short cut road to specific products

3) Evaluation of alternatives- Form different other values that the core values of the product

4) Role in purchase decision- bring core value of product to influence decision and use irrational advertisement to promote new services

5) Post purchase- Build a better communication channel, targeting message or customer service
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Some areas of improvement

We could have started by asking clarifying questions.

What is meant by advertising? Is it email advertising/ social media ads/ print ads/ out of home ads or a combination or all of the above?

What is meant by human behaviour? Is it getting someone to start their first interaction with a product? Is it meant to bring users back to the sales funnel? Does it mean a final sale or conversion?

 

Based on the interviewer's response, the answer can take different routes.

Let's assume the interviewer wants to know how does Social media ads influence conversion behavior.

We can then talk about how social media ads are becoming increasingly targeted and strike the user when he is thinking about buying a product- thus they are very contextual and relevant.

They can nudge the user and make him buy when he was maybe in two minds.

However, it can even be a double edged sword.

Some users might take this as an intrusion in their privacy and thus leave the sales funnel. Thus it is important to be subtle as well.

And most of all, the product has to deliver substantial value for advertising to give long term benefits.

Hope this helps.

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Get access to over 238 hours of video material containing an interview prep course, recorded mock interviews by expert PMs, group practice sessions, and QAs with expert PMs
Boost your confidence in PM interviews by attending peer to peer mock interview practices, group practices, and QA sessions with expert PMs