Selected Perspectives of Communication Management

## **Chapter 1** Communication Channels

*Anca Constantinescu-Dobra and Mădălina-Alexanda Coțiu*

## **Abstract**

The scope of the chapter is to discuss changes in usage of digital communication channels before and during the Covid-19 pandemic. Consumers in both industrial and fast-moving consumer goods markets are considered. The chapter comprises a suggestive overview, followed by conclusions on trends expected in digital communication channels usage due to the shifts in consumer behavior caused by the pandemic. Digital communication channels analyzed include websites, sales pages, social media platforms, as well as e-mail marketing, and blogs. Consumers in Generations X, Y and Z, and their preferences for the different communication channels are analyzed. Results indicate an increased interest of all generations for social media, especially following the Covid-19 pandemic. E-mail marketing also remains an important communication channel across all three generations, while the interest in websites and blogs varies. All consumers favor high quality, attractive content displayed irrespective of the communication channel used. Trends identified suggest the interest for online shopping and online engagement with brands will remain sustained after the lift of the various restrictions imposed by the pandemic. It is therefore important that brands ensure a strong online presence and engage with their audiences based on their consumers preferred communication channels.

**Keywords:** communication channels, corona virus, generations X, Y and Z

## **1. Introduction**

The intensification of international competition among companies and the brands' interest for engaging in successful market communication determines an increased interest for digital communication channels, compared to the other elements of the communication strategy. Apart from delivering brand and company information, communication channels also play an important role in leveraging consumers' attitudes by creating a favorable image for the company and its products. This can be accomplished nowadays by disseminating information via reliable, independent sources such as user-generated content that is shared on blogs or forum posts, comments on social media platforms, YouTube etc. Such content, shared by ordinary users or influencers, is meant to involve consumers in company decisions, as well as creating interesting and engaging activities for them (i.e. fun events that create positive feelings towards the brand etc.).

Communication channels have a strong impact on the entire value chain. This role was made even more important by the Covid-19 pandemic which has led to communication channels turning into powerful differentiators in the fierce competitive landscape. Digital communication channels became effective tools for companies to position themselves on the market, especially because they allow brands to engage and interact with their consumers directly. Furthermore, online

#### *Communication Management*

communication channels are flexible and allow companies to present their consumers with customized information across the different target segments. Finally, costs associated with online communication channels are independent of the amount of information, distance, or dispersion aimed for.

Communication budgets, for both traditional and digital means, have registered a 5% cut across the world after the onset of the Covid-19 pandemic [1]. The ratio between traditional and online communication spending has started to favor digital communication beginning 2015, with a difference that has now reached 15%. Some other trends regarding digital communication channels that have been observed globally in the past couple of decades include:


The onset of the Covid-19 pandemic has accelerated these trends and determined new shifts in terms of digital communication channels usage. We therefore propose an overview chapter aimed at providing a synthesis of currently available research regarding online communication channels and their use for reaching marketing objectives following the Covid-19 pandemic. The content proposed is based on secondary data analysis retrieved from scientific articles and various industry reports and analyses. A search in online academic databases (i.e. Springer, Taylor and Francis, Sage) and Google Scholar was conducted between March and April 2021. The keywords used included: online marketing channel, covid-19, generational cohorts, X, Y, Z generation, shfits/trends in online marketing channels usage during the pandemic, social media/website/blog/forum use during the pandemic. Only English language articles published between 2000 and 2021 were

#### *Communication Channels DOI: http://dx.doi.org/10.5772/intechopen.98598*

selected. These were then complemented with relevant statistics and industry reports analyzing the use of online communication channels and any shifts and new trends determined by the Covid-19 pandemic.

The focus of this chapter is to analyze and discuss consumers use and preferences for online communication channels before and during the Covid-19 pandemic, as well as identify new trends emerging in this area. The chapter provides valuable insight for marketing professionals, researchers and company executives for SMEs interested in how to best allocate financial resources to maximize online market presence and customer engagement with their brand.

The specific objectives of the chapter are to:


## **2. Preferred communication channels across target segments**

Digital communication channels refer to means of engaging in the online environment. They include [2, 4]:


We will briefly present the specifics of each channel and then discuss them in connection with the different target segments we chose to analyze.

1.*The website of a company*, as a communication channel, must be adapted to the potential customers' need for information. Most authors agree that every company that intends to build an online presence should start with a website. These are mainly dedicated to public relations, and informative advertising for products, and companies, as well as for developing a personalized relationship with consumers.

The landing page or *the microsite* is an individual website that is connected to the main site. It is useful for call to actions strategies or for companies that need additional efforts to sell products with low demand.

2.*Online advertising* refers to advertisements placed in online environments (e.g. websites, search pages etc.)*.* It includes search advertising, graphic and interstitial advertising.

*Search advertising* refers to paid advertising that appears in search engines (e.g. Google, MSN, Yahoo and others) to guide the customer to the product or service they need. It also encompasses relevant links to company content.

*Graphic advertising* can be an image or a graphic with different shapes (usually a small rectangular box) that incorporate text and/or images. Companies pay for these ads to be placed on websites with good traffic rates, to boost audience. Therefore, if there is a well-known website of an idea, a place, a person or a company, brands are likely to choose it to place their graphic advertising there aiming to increase brand visibility among the target group.

*Interstitial ads* appear between website pages or when the visitor switches to another website. These advertisings can be videos or animations.


#### *Communication Channels DOI: http://dx.doi.org/10.5772/intechopen.98598*

Studies show digital communication channels are used different by consumers, based on their demographic data. We will discuss these particularities considering the different generational cohorts which have been described in the literature.

Social generations refer to "communities of people that are born in the same period and share the same cultural experiences" [9]. Six generations have been identified in the literature between 1920 and up to now. The oldest generation is the so-called Silent generation or Traditionalists – they were born between 1920 and 1945. They have lived through the second world war and have a high need for security. They are now all retired, live rather simple lives and have high respect for authority [10]. The next generation is the Baby boomers. Born after the second world war, between 1945 and 1965, they are highly competitive, accept working long hours and have positive traits such as consensus building and effecting change [9, 10]. This cohort is followed by Generation X born between 1966 and 1979. This generation is characterized by strong independence and self-reliance. Both of their parents were generally working so they were trusted to take care of themselves from an early age [11]. They grew up in the age of TV and increasing rates of divorce. They have a high sense of accomplishment and a strong need for social recognition [12]. The next cohort is Generation Y. They are also known as Millennials and were born between 1980 and 1995. They are proficient in multitasking, are self-confident and ask for flexible working hours. They treasure work-life balance and tend to switch jobs more often than previous generations [9]. Millennials are followed by Z Generation. They were then born between 1996 and 2016. Born in the age of internet, they have had access to electronic devices since their early childhood. The last generation known is the Alpha generation. Starting with 2016, they are the first generation to have been born entirely in the 21st century and their traits are yet to be discovered [13].

For our analysis, we will focus on Generations X, Y and Z. We chose these three generations because of their size and purchasing power. At the same time, they are the three generations most actively engaging with digital communication channels. In the following sections, we will discuss the different preferences the three generations have had for digital communication channels, as well as any shifts in preferences that may have occurred because of the disruptions caused by the COVID-19 pandemic. The chapter will conclude with an analysis of the implications such changes may have for companies targeting these consumers.

#### **2.1 Generation X**

Born between 1966 and 1979, Generation X represent 32% of the workforce [14]. Having been active on the labour market for a while, they hold higher positions, such as senior-level managers, and find themselves at the peak of their buying power [14, 15]. They are generally busy and focused on juggling children and careers [16]. Family and friends are particularly important for this generation, and they appreciate work-life balance [17]. At the same time, most of them are focused on saving for retirement and old age. Because of this, research indicates representatives of Generation X react positively to bargains, coupons, and sales, as well as free trials [14, 18, 19].

Approximately one quarter of all online shoppers (23%) are from Generation X [14]. Shoppers in this generation have a strong interest in researching sellers, products, and services. They research businesses online, and tend to read more reviews, and visit more opinion sites than any other generation [15, 19]. It is therefore important that companies have up-to-date and easy to navigate through websites, where consumers can find answers to their questions. Studies also recommend websites to contain robust search functionalities to support consumers in

their research, as well as well-managed live chat functions that enable the company to answer any inquiries quickly [15]. Generation X consumers favor websites over blogs and microblogs. Most consumers in this generation indicated they do not use blogs and microblogs at all (42%), or only use them occasionally (43%) [17].

In terms of digital communication channel usage, studies show Generation X consumers "have fully embraced digital media" [19], being almost as present in this environment as Millennials. At the same time, Generation X users remain active e-mail users. In fact, e-mail and Facebook represent their preferred communication channels in the online environment [14, 18]. They check their e-mail frequently, both at home and at work [14, 16, 18]. In terms of social media, approximately 80% of Generation X representatives have a Facebook account which they mostly use for accessing news and for remaining in contact with family and friends [14, 19]. It is also worth noting that these consumers spend more time weekly on all devices than younger generations. Statistics show they tend to spend an average of 21 hours/ week using their smartphones, 9 hours/week on their laptops and 4 hours/week on their tablets [15]. Generation X consumers also remain users of the traditional media (radio and TV) much more than any of the two other generations under analysis [19].

These traits and preferences of Generation X have a series of implications for the way brands connect with them. First, because Generation X users have been born in the age of TV, it is important to note they are used to video content. Studies recommend brands to engage with these consumers using highly visual content and videos. Furthermore, research suggests Generation X users are prone to sharing interesting videos across social media, thus increasing a company's reach [15]. Second, considering their propensity to conduct extensive research before making a purchase, it is important companies invest in well-functioning, attractive websites that include search functions. Furthermore, given that X Generation users spend considerable amounts of time across multiple devices, companies should optimize their websites for tablet and mobile use. Third, considering users communication preferences in the online environment, companies should direct their digital advertising efforts towards e-mail and Facebook. Search engine ads are also a channel that consumers in this generation respond positively to [15], given their inclination towards research conducted via the Internet.

#### **2.2 Generation Y**

Born between 1980 and 1995, Millennials have witnessed the rapid advance of information technology and globalization, reaching maturity in the "digital age" [17, 20]. They generally grew up in families with two working parents which ensured good conditions for their personal development. They value independence, creativity, innovation, and development [17]. They are well-educated and tech-savvy, as well as quick to adopt new technologies [19, 21]. They appreciate speedy devices and expect to find information quickly and easily [14]. They are also described as the "most visually sophisticated of any generation" [21].

Generation Y consumers are brand loyal, yet socially conscious and seeking to make ethical buying choices [16]. They prefer buying from companies that help people, communities, and the environment [22].

Millennials are the most targeted demographic in the marketing industry [22]. Yet, they are generally distrustful of commercial advertising and influenced by their peers [19]. Like Generation X consumers, Millennials conduct considerable research and comparison before making a purchase [19]. Generation Y consumers are three times bigger than Generation X [22] and hold 200 billion dollars in buying power [16]. They are the least frequent in-store shoppers, being active users

of e-commerce [16]. They spend approximately 2.000 dollars/year for online purchases [14].

In terms of digital communication channel usage, Millennials are present on most social media networks including Facebook, Twitter, Instagram, LinkedIn, and even TikTok. They use social networking much more often than Generation X [17]. Their favorite social media network is Facebook, followed by Instagram [19]. Because of their extensive social media usage and trust they place in peers' opinions, Millennials tend to respond positively to paid advertisements and promotions on social media, as well as reviews and user-generated content [19, 22]. They enjoy high-quality advertisements containing pleasant graphics [22]. Coupons and side-panel ads are the favorite form of advertisement Millennials respond to [22]. At the same time, they strongly dislike pop-up ads which they consider annoying [22]. Current surveys indicate 51% of Millennials discover a new brand via Facebook, 18% via Twitter and 15% through other social networks [White, M. quoted in 22]. Users also discover new brands through online ads (24%), company websites (30%) and blogs (15%) [White, M. quoted in 22]. At the same time, studies show Millennials are prone to engage in conversations about products and services. Studies conducted previously indicated that 56% of Generation Y consumers discuss products and services via social media networks and use their peers' opinions and comments to assess products and services, with one study pointing out that consumer reviews are trusted up to twelve times more than descriptions provided by the manufacturer [22]. As loyal consumers, Millenials also react positively to rewards and loyalty programs [16].

Regarding company websites, it is important they load quickly and have simple, professional layouts, adapted for mobile use [14, 22]. This is mostly because Millennials value convenience and easy access to information. For the same reason, studies indicate Millennials favor websites and brands that offer customer service features which include texting that they regard as a convenient communication method [14]. At the same time, Millennials are likely to perform repeat websites visits if the company offers competitive pricing, coupons, and good shipping rates [22].

Unlike Generation X users, Millennials are not frequent e-mail users and do not watch television. They are however present on streaming platforms such as Netflx, which they consider more appealing than traditional television [19].

The characteristics listed above suggest that when addressing Generation Y consumers, companies ought to focus on meeting them in the online environment where Millennials seem to spend most of their time. When targeting Generation Y it is important companies use honest messages, encourage reviews, and address Millennials' inclination towards loyalty programs and rewards.

#### **2.3 Generation Z**

Generation Z consumers were born between 1996 and 2016. Their upbringing has occurred in a digital society, a fact that has strongly influenced their preferences in connecting with each other, as well as brands. Generation Z consumers perceive themselves as adaptable and connected to many different people [23]. At the same time, because they grew up in the digital society and they have been exposed to more digital content and information than any generation before, Z Generation consumers seem to have become more selective regarding the content they decide to engage with, than other consumers [24]. Studies indicate Generation Z consumers allocate approximately eight seconds to sort through and assess the various information they are being exposed to [24]. At the same time, these consumers seem to be more concerned about their privacy in the online environment,

as well as more skeptical in terms of the truthfulness and value of the content they are being presented with than Generations Y and X. Studies show they tend to "respond positively to brands that are more relational, and therefore, are perceived as authentic" [23, p. 70].

From the point of view of their buying power, Generation Z accounts for 40% of global consumers with a spending power of 143 billion dollars [23]. Their buying decisions tend to be influenced by friends and family, and they allot more importance to quality, than brand loyalty [19]. They are highly comfortable with online shopping [23].

In terms of communication channels, Generation Z consumers actively favor the online environment. This group spends more time online than any generation before them. In a recent study, Generation Z teenagers indicated they were "almost constantly online" (45%) or they were online "multiple times a day" (44%) [24]. Time spent online is mostly split between social media and e-mail. This is to a certain extent surprising as e-mail is often regarded as a more traditional means of online communication, characteristic of Generation X, rather than Z. Despite this, a recent study shows that most Z Generation users check their e-mail multiple times a day (58%), or at least once a day (81%), mostly when on the go, or to pass the time [18, 24]. Most users (66.9%) receive less than 20 e-mails/day [Campaign Monitor]. These aspects are important from two perspectives. On the one hand, these statistics suggest e-mail remains an attractive means of communication for this generation, including for marketing purposes. On the other hand, the reduced number of e-mails this group receives daily may indicate less competition for their attention than in the case of other media.

As mentioned previously, Z Generation users are very present on social media. A recent study indicated that 90% of respondents use social networks all the time or a few times a day [17]. Unlike Generations X and Y which reported large use of Facebook, Z Generation users are more focused on Instagram, Twitter and TikTok [14], as well as Youtube and Snapchat [24]. This group does not have one preferred online platform as was observed for Generations X and Y, but are multi-channel users. They will consume different type of content across the different platforms they use [24]. For example, studies show they may use Snapchat for capturing reallife moments, use Facebook for information purposes and Instagram to share their aspirations [24]. This means companies should avoid sending the same message across all platforms. Brands should consider a rounded digital marketing campaign, rather than focusing on each channel individually [24].

Regarding brand engagement, Generation Z users favor social media and e-mail, followed by in-person interactions, advertisements, chat features and company blogs and websites [24]. It is important that websites and blogs are adapted for mobile use [18], while e-mails should be relevant to them and not spam [24].

Generation Z consumers are largely influenced by content favoring quality and authenticity over price [18]. They react positively to visually pleasing content including images, Gifs, memes [19, 25] as well as behind the scenes and product demonstration videos [19]. Therefore, Z Generation users enjoy Youtube, Instagram and Snapchat considerably [24]. At the same time, like Generation Y users, Z Generation consumers respond positively to user-generated content, and opportunities to take the lead in creating and sharing content [21, 25]. It is also important to remember Generation Z users filter content rapidly, so it is important that content offered to them is highly engaging from the beginning. This group dislikes "blatant advertising" [19].

The characteristics presented above suggest that companies should develop integrated communication strategies aiming at combining communication channels to increase brand exposure, by building on the specific characteristics and user interests for each of these channels. At the same time e-mails and in-person interactions should be considered carefully as a means of maximizing connection with Z Generation users.

#### **3. Communication channels shifts during the Covid-19 pandemic**

During the Covid-19 pandemic considerable restrictions were imposed across the globe in terms of consumers' mobility and interactions with one another or product and service providers. In this context online communication channels have gained importance by offering consumers a bridge over the restrictions that had been imposed. For example, social media has offered consumers a means to remain connected to each other, as well as brand, and has also transformed itself into a marketplace that offered communities shorter distribution chains and rapid access to information. Many local businesses entered and rapidly adapted this new online marketplace to make themselves known in their community and ensure their survival during the pandemic. Furthermore, companies also identified online communication channels (e.g. websites, e-mail communication etc.) as an important tool to remain connected with their consumers, educate them on crisis management, and contribute to reducing anxieties among their consumers. In the following paragraphs we will analyze the changes that occurred in the usage of the various online channels during the Covid-19 pandemic while also considering the characteristics of each social generation.

A market research with 450 respondents concluded that the Covid-19 crisis triggered the cutting down of communication budgets across most companies [26]. Furthermore, for the US market, traditional communication channels have shrunk by 12% in 2020, online channels grew by the same percentage [27].

In addition, another recent survey indicates many companies reduced their communication budgets, and 61% changed their short-term communication strategy [26]. Experts assert that the lack of a long-term communication strategy may negatively impact companies' growth and development. This is because the lack of such a strategy can affect customer loyalty. Specifically, loyalty depends to a great extent on the company's image, on what the customer believes or knows about it. And this brand image, in turn, is the result of all the communication about the product to which the consumer is exposed. Instead of renouncing strategies, companies should focus on unpaid communication as well and ensuring organic growth by offering multi-channel qualitative content.

In terms of digital communication channels, the greatest change caused by the Covid-19 pandemic was registered for websites. A global research with a sample of 1.000 executives indicated websites registered a 15% increase in December 2020 in comparison with the same period of 2019 [28]. Despite dwindling sales, e-commerce has registered a 14% growth during the pandemic.

A good website must build trust, be up to date and customer friendly. Apart from content related to the products and services offered, the website should also convey companies' objectives, history, products, mission, and vision for different target segments. The main challenge in designing a website is to create an attractive layout that offers interactivity and acts as a vector for building loyalty. Websites should also have a balanced composition and offer an easy-to-understand user experience [29]. These traits were required for a successful website both before and during the Covid-19 pandemic.

An extensive literature insists on the competitive advantage that a company can obtain through online services that can be made available to buyers through professional websites. This channel supports companies to decrease operating costs, raise profits, boost customer portfolios, customize services, while also contributing to distribution flexibility, improving the quality of marketing research, and developing complementary businesses [29]. Results of research on website profitability conducted by Nielsen, an expert in websites evaluation, show that improving a website (i.e. content that supports building trust and transparency, interactivity, layout and navigation path) can be 50 times more profitable than in the case of poorly built websites [29]. There are distinct methods for evaluating the functionality, performance, ease of use and accessibility of websites. For each complex variable, the evaluation can be done from the perspective of the software developer and the end user. Functionality and performance are rather technically subjective, while ease of use and accessibility are mostly assessed from the user's perspective.

In terms of paid advertising on social media channels, this has encountered ups and downs, depending on the various sectors of activity. Industries such as travel and hospitality, indoor events (cinema, social activities) retail, events, and conferences, as well as logistics faced strong declines in their activities and consequently, the communication channels were also affected [30]. A higher online presence was registered in the health care and online medicine sector, along with online fast moving consumer goods delivery services, videoconferencing, online streaming, and entertainment (Netflix, HBO go, Spotify) or online outlets.

Online advertising was not a channel that developed during the pandemic more than before [1]. It can be paid or unpaid inserts (because banner exchanges are common) online. Most frequently used online advertisements during the Covid-19 crisis were: sponsorship of a site or sections of a site, insertion of marketing messages in e-mail, and interstitials. It is worth noting that pop-up ads are generally considered annoying, and users block them. During the pandemic, 46% of users declared they found them boring and did not watch them [31].

Other globally conducted research [28] reveal a change in the main scope of communication campaigns during the pandemic. Therefore, communication executives prioritized the following *objectives*:


We can conclude that channels which provide brand consolidation in the mind of prospective clients and a better exposure for existing clients represent the winners for companies in time of crises.

Regarding B2B communication, web conference channels remained an important tool both before and during the Covid-19 pandemic. This was due to its specific features that allow for personal relationship and interaction between people. By practicing direct marketing, a company can have an important competitive advantage, which allows it to better understand customer expectations and thus customize its offers. The company's online documents are basic tools used by these channels because they enforce trust in the company and strengthen its credibility.

#### *Communication Channels DOI: http://dx.doi.org/10.5772/intechopen.98598*

Participation in trade events, specialized communities, and exhibitions allow the company to engage the existing and potential customers.

Executives stress out a shift in digital channels importance, due to their profitability. Another research [26, 28] suggests that the channels preferred during and after Covid-19 times were:


Brands adopted more helpful and human approaches in their online communication, being sensitive to the clients' state of mind. Most effective communication is mainly oriented towards engaging actors in social content, leadership thought, direct customer outreach, corporate social responsibilities [26].

Although digital communication channels became more useful for companies, there are still concerns related to cybersecurity and personal information security.

#### **4. Changes in communication channel preferences across target segments following the COVID-19 pandemic**

During the Covid-19 pandemic various restrictions on circulation and lockdowns were imposed across the globe. This led to people remaining isolated in their homes, with limited contact with their families, friends and loved ones [26]. Furthermore, the restrictions imposed to prevent the spread of the virus also affected the way in which people conducted their daily activities including work, education, entertainment, healthcare, shopping etc. Faced with this situation, consumers have responded to the pandemic by altering their daily behavior and routines [32]. When dealing with limited mobility, consumers turned increasingly to the online environment. This has taken the form of remote work and education, increased use of e-commerce, delivery applications, social media, streaming and gaming platforms, to name just a few. We will discuss in the paragraphs to come, the changes that occurred across Generations X, Y and Z in terms of communication channel usage during the Covid-19 pandemic.

As argued in the previous section, the three generations are active users of the online environment, including websites and blogs, e-mail, and social media. The onset of the pandemic with the restrictions that this triggered has led to an increase in social media usage for all three generations. A research conducted in Italy [26], indicated that social media usage during the first lockdown increased by 110% for Generation Y users, and up to 114% for Generation X consumers. At the same time, Generation Z users have continued to on rely social media as their main form of

communication [23]. The most used social media, regardless of age, education, and gender during the pandemic has been Youtube, followed by Whatsapp, Instagram, Facebook and Messenger [26]. At the same time, Generation X used media such as LinkedIn, Whatsapp Zoom, Microsoft Teams and Skype more often that Generations Y and Z. This may be caused by the fact that X generation consumers are older and hold higher professional positions thus favoring media that have longer market presence (i.e. Skype) or focus on professional networks (i.e. LinkedIn) [26]. Generation Z users favored Instagram, TikTok, Youtube, Messenger, Snapchat, and Pinterest [26, 33].

The use of Instagram and TikTok registered a 45% increase for Generations Y and Z. X Generation consumers also used these platforms, although the increase was smaller (33%) [26].

In terms of buying behavior, consumers across all generations turned towards online shopping, especially due to its contactless process [34]. E-commerce increased between April–June 2020 from 16 to 27% of retail in the US and from 18 to 30% in the UK [32]. This shift was more pronounced among Z and Y Generations where 33% of consumers increased their online spending vs. 23% in Generation X [32]. In general, consumers shopped online to ensure the required products for house consumption and other personal needs, but also as a distraction or leisure activity [35]. The same research [35] indicates these hedonic motives have been more present in the case of Z Generation consumers than Generation Y. Another study indicates that 13% of Z Generation consumers made their first online purchase during the pandemic [36]. Consumers across all generations also tried new brands in the context of the pandemic (66% in the case of Y and Z generations and 43% in the case of Generation X) [35].

When deciding where to shop online during the pandemic, research suggests social media remains an important channel for targeting shoppers [36]. At the same time, word of mouth and referrals continue to remain important across Generations Y and X, especially given the fact that online shopping does not allow product testing and the two generations' inclination towards extensive research before making a buying decision [36]. At the same time, discounts and rewards for loyalty and referrals remain important for both X and Y Generations [36]. Social media also plays an important role among Z Generation users. Advertisements on social media have influenced the buying decision during Covid-19 for 60% of Generation Z users compared to 25% for Generations X and Y [33]. Users across all three generations continue to prefer high quality video ads, and product offers which feel genuine and authentically fit the platforms where they are presented [33, 36].

#### **5. Discussion of trends that affect communication channels**

The Pandemic set some immovable rules regarding digital communication channels. Businesses must remain more than ever connected with the customers through miscellaneous means to products and distribution channels.

Also, the communication channels strategy must be pragmatic and performant, by driving important outputs. Businesses must adapt to find the customers, wherever they are and in the manner that they want to be approached. Furthermore, companies need to offer a "consumer-centric" experience on the navigation journey and facilitate omni-channel engagement. This also means that customers expect to choose their one channel. Additionally, the customers participate to communicate the companies positioning [37].

The quick rise of efficiency analytics tool available for digital channels, determine that programmatic advertising will be used not only by media agencies, but

#### *Communication Channels DOI: http://dx.doi.org/10.5772/intechopen.98598*

smaller brands executives too. The real time bidder will be deployed in a greater extent, being a way to auction for an advertising space [9].

Innovation became crucial element in digital channels strategies by making the communication creative to keep brands relevant. Emotional communications, society involvement, and struggles to create an inclusive and more equitable future can bring recognition to a brand during a time of crisis. For example, a study on 25.000 persons reveals the clients' need to be informed under uncertainty condition and to be educated to diminish the effects of the crisis [38].

Artificial intelligence will bring more benefits for customers as well as for communication executives. The first advantage can be by facilitating the built or consolidation of a CRM (customer relationship management) through collection the users' information from different platforms. If companies can easily process big data about customer' behavior, strategies for communication channels can also be rapidly adapted to the needs of the audience. Secondly, in combination with virtual reality or augmented reality receptors can interact in a more complex manner with the brand, creating at the same time extraordinary experiences along with a greater sense of loyalty [39, 40]. Thirdly, chatbots can improve customer service by offering answers simultaneously, regardless the time zones. They can also enable customization of messages for e-mail marketing or how and where an advertisement is displayed based on clients' profiles. The content displayed for each communication channel can also be adapted based on the data available, thus leading to increased user engagement.

#### **6. Conclusion**

The chapter provides an overview of current data available regarding consumer preferences for digital communication channels before and during the Covid-19 pandemic, and the impact of such preferences for companies' marketing efforts.

The Covid-19 crisis affected communication channels irrevocably, with lasting effects. First and foremost, the pandemic has determined an increase in consumers' expectations of trust from the companies they choose to purchase from. While the pandemic has determined a considerable increase in e-commerce, it has also led to a rising importance of electronic word-of-mouth and referrals as a means of consumers researching brands and products. Consumers require honest information and trustworthy processes. Secondly, the pandemic has determined an increase in the importance attributed to some digital communication channels such as websites, social media, web conferences, and videos. This was mostly because these channels were the ones to bridge the gap which emerged between consumers, their peers, brands, and companies due to the various restrictions imposed to counteract the spread of the Covid-19 virus. The pandemic has brought an increase in social media and e-commers usage across all three consumer generational cohorts that we analyzed. Consumers expect high quality and visually pleasing websites, graphics, and advertising, which is delivered using the digital communication channels that each generation cohort utilizes. Brand messages should be adapted to the specifics of each digital communication channel used and speak the language of the generational cohort they are being addressed to.

Another important consequence of the sanitary crisis was the companies' acknowledgement of the importance of digital marketing and communication to engage consumers, build trust relationships and loyalty, even in times of cries. This has led to digital communication budgets being revitalized after the first wave of the pandemic. Focus was directed towards increasing customer loyalty by offering various possibilities for interaction with the brands. The pandemic has also revealed a radical movement towards the digitalization of digital communication channels

by integrating artificial intelligence in providing relevant and customized information. Furthermore, the process of interchanging channels can benefit from artificial intelligence and machine learning techniques to ensure growth in the efficiency and effectiveness of communication. Chatbots and virtual reality deliver more added value and a pleasant experience for receivers.

Lastly, results show companies should continue to strive for creativity and innovation when conveying their brand's values to consumers, while also engage in emotional communication, promote social engagement, and strive for an inclusive and more equitable future.

Some limitations were encountered when developing the chapter. Access to data and statistics regarding digital communication channels during the Covid-19 pandemic was to a certain extent limited due to the novelty of this sanitary crisis and its impact on consumer behavior. Most data available focused on the use of websites and social media, while information regarding online advertising, blogs, sponsorships, and affiliated marketing during this period remains limited. We believe further research should be conducted on how the pandemic affected consumers use of online communication channels during the pandemic. Further studies should also approach the trends that emerged for digital communication during the Covid-19 pandemic and assess the extent to which these trends will continue as life starts to resemble the pre-pandemic period, as well as the impact they will have on companies' marketing presence and consumer engagement.

#### **Acknowledgements**

The chapter was supported by the grant "Green strategy for Thermic Company form Cluj-Napoca during the period 2021-2030", financed by the City Hall of Cluj-Napoca.

#### **Conflict of interest**

The authors declare no conflict of interest.

#### **Author details**

Anca Constantinescu-Dobra\* and Mădălina-Alexanda Coțiu Technical University of Cluj-Napoca, Cluj-Napoca, Romania

\*Address all correspondence to: anca.constantinescu@enm.utcluj.ro

© 2021 The Author(s). Licensee IntechOpen. This chapter is distributed under the terms of the Creative Commons Attribution License (http://creativecommons.org/licenses/ by/3.0), which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited.

*Communication Channels DOI: http://dx.doi.org/10.5772/intechopen.98598*

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#### **Chapter 2**

## Sensory Marketing

*František Pollák, Jakub Soviar and Roman Vavrek*

#### **Abstract**

The issue of sensory marketing is a relatively new concept in managerial science. Due to the competitive environment of the global market, companies are confronted with the constant need to find effective approaches that will allow them to maintain a competitive advantage in the fight for the customer. One such approach is the application of sensory marketing tools to brand-building processes. The aim of the chapter is to bring the issue of sensory marketing closer to the general professional public. The chapter also focuses on the pointing out the fact that only by taking into account the specifics related to sensory marketing, the process of building a brand becomes holistic and sustainable. The theoretical framework describes the basic foundations of the issue. The empirical part presents a description of the selected experiment from a series of five experimental investigations performed to verify the theoretical assumptions in practice. From the point of view of the findings, it can be stated that targeted stimulations of the senses have a significant impact on the overall experience of individuals. Through the synthesis of theoretical and practical knowledge, it was possible to compile a model for the application of knowledge to business practice.

**Keywords:** senses, smell, touch, taste, hearing, sight, consumer behavior, innovation, competitive advantage

#### **1. Introduction**

The issue of sensory marketing is relatively new concept in managerial science. Especially when we consider that marketing as we know it today has its roots in the first half of the twentieth century [1]. The first signs of sensory marketing can be seen in times of transformation of marketing from its production to product form. Product marketing analyzes suggest that the comprehensive change in approach was largely initiated by the increase in economic prosperity in the 1970s.

The year 1970 cannot only be described as a year of a sharp increase in the popularity of branded goods but also as a year of the beginning of the transformation of marketing strategies. Businesses have gradually discovered that it is the product brand that can be a source of profit, and so all marketing attention has shifted to building brand identity. The sensory aspects of the products were taken into account only insignificantly. The full integration of sensory marketing into the portfolio of product managers did not occur until the arrival of the new millennium [2]. In the professional literature [3], we encounter the statement that within the strategy of differentiation, marketers began to use new tools that quite surprisingly disrupted traditional schemes. These tools have greatly improved product perception while enhancing the brand's memorability in the minds of customers.

According to Boček et al. [4], sight, touch and taste have long been an integral part of product marketing. However, the term "sensory" or "multi-sensory"

marketing did not appear until the time when brand owners and marketers focused on the action of the other two senses, and thus smell and hearing. For a long time, a strict increase in turnover was one of the main priorities of companies interested in sensory marketing. However, it is different today. For many businesses, it is just as important to create a consumer relationship with the brand as to simply be able to stimulate their purchases. Thanks to sensory marketing, the factor of human perception and its subjectivity appears in the business strategy of companies. Sensory marketing focuses mainly on customer experiences. It is based primarily on practical knowledge, in which the experience of the brand (product or service) is perceived holistically. The human senses play an important role in consumer behavior and are therefore at the heart of marketing activities that emphasize the creation of sensory experiences [5]. Kovanda [6] defines sensory marketing as a subdiscipline within marketing, which focuses on building a brand by targeted stimulation of the consumer's senses through the application of various procedures and technologies. Randhir et al. [7] see sensory marketing not only as a tool for measuring and clarifying consumer emotions but also as an opportunity to take advantage of new market challenges that help to ensure the long-term success of a product. According to Nízka [8], it is important to affect all the human senses. This is the only way to creat a differentiated perception of the product in the customer's mind compared to the competing product. By this procedure, it is possible to significantly contribute to building a product's psychological competitive advantage in the market. The main task of sensory marketing is therefore to monitor how the individual senses of the customer affect his/her shopping behavior and to what extent they influence his/her purchasing decisions [2].

The aim of this chapter is to present the issue of sensory marketing from the point of view of its theoretical, but also practical applications. In the following sections, the human senses will be introduced as the factors in sales promotion. Based on this theoretical overview, practical applications of the issue will be presented through selected results of qualitative research, conducted in the form of simple experiments. Based on theoretical and practical knowledge, the basic model of application of sensory marketing tools to business practice will be presented at the end of the chapter.

The presented research is carried out as a part of an extensive study of the issue of reputation management to examine the relevant factors that affect sustainable brand development.

#### **2. Senses as factors in the promotion**

The senses allow people, as well as all living beings, to know the world around them from the very beginning of their existence. They also accompany them throughout their lives. That is why stimulating the senses can be an effective way to influence customer behavior. However, it is important to understand that how the individual senses work. In the next part of the chapter, we will briefly discuss all five senses, focusing in particular on their meaning and the role they play in people's lives. For each of the senses, we will then approach its application within the processed topic.

#### **2.1 Smell and the scent marketing**

The smell can be considered as the first-developed sense. According to various studies, after birth, the baby perceives his/her mother primarily by smell, based on which he/she can identify her [9]. According to Hultén et al. [5], the smell was

#### *Sensory Marketing DOI: http://dx.doi.org/10.5772/intechopen.100378*

considered to be the least researched human sense. The studies of the Nobel Prize winners in physiology or medicine in 2004, Richard Axel and Linda Bucks, brought considerable scientific progress. In addition to new knowledge, Axel and Brooks have discovered that people can distinguish and remember more than 10,000 different scents. Their scientific studies have for the first time identified olfactory receptors in the human body. More importantly, they have shown that humans have innate about 1000 different genes that help to encode individual olfactory receptors [2].

Krishna further argues that the uniqueness of smell in comparison with other senses lies in its direct connection with memory. This physical, as well as nervous proximity of the systems, is the primary reason that we can keep the information gained by the smell in our memory much longer than we can keep in our memory the information we obtain through other sensory sensations. Lindström [10] considers smell to be one of the most important and most sensitive senses. He believes that up to 75% of human emotions are generated by smell. Whether a scent evokes positive or negative emotions in a person depends primarily on his individual memories, which are associated with the scent. These memories are based on previous experience, which can make a scent pleasant for one person and not for another.

Within the marketing of the senses, the smell is represented by scent marketing. According to Pajonk and Plevová [11], scent marketing is also known as aroma marketing or olfactory marketing. It is also one of the latest trends in general marketing. From the point of view of support processes, it is a series of events in which it is possible to stimulate customers'shopping behavior through the influence of appropriately selected scents. The fragrance has been a marketing tool since ancient times, even though it was initially a by-product of another activity. Only over time did the scent begin to be used in a targeted way to evoke emotions in the target customer. A person who is in a state of a pleasant mood is subsequently more affected by such stimulation [12]. As aroma has a relatively strong effect on subliminal perception, it is important that the customer's subconscious mind combines a perceived scent with something positive and motivating. According to Vesecký [13], this is exactly the whole essence of scent marketing. According to Boček et al. [4], the presence of a fragrance that matches the theme and the products in the store has both a positive effect on the evaluation of the place itself, as well as on the evaluation of the products sold in the place. Some studies even confirm that the diffusion of the scent can affect the time spent in the store. Vesecký [13] also states that in principle the use of aroma marketing can be divided into two basic categories. The first is the product use of the fragrance, which can directly influence the customer's purchase decision. According to Krishna [14], these are products that have their own specific scent. However, often it is not just about the scent of the product as such, but rather about associating the scent with a specific brand, thanks to which the brand can build its own identity and thus differentiate itself from the competition. Lindstrom [10] mentions the aroma of marketing in the product used as an example of car manufacturers and their "new car scent". Many people consider this fragrance to be one of the most joyful aspects of the purchase itself. The smell is even perceived as a much greater manifestation of a novelty than the shine and purity of the vehicle. In reality, however, there is no such thing as the smell of a new car. It is just an artificial idea or a successful marketing ploy that is directly played with the human senses and imagination. This fragrance of novelty can also be found in an aerosol sprayer, through which the interior of the vehicle is impregnated before it leaves the production line. The second category focuses on spatial use, the main task of which is to create a pleasant environment for the customer and thus increase his willingness to perceive the offer or new impulses from the trader [13]. Vysekalová and Mikeš [15] cite as an example

of spatial use of marketing old Viennese cafes, in which every morning before opening the floor of the room are sprinkled with freshly ground coffee, which is then swept into cracks and gaps in the floor, thanks to which the first-morning guest is welcomed by the delicious aroma of fresh coffee. Krishna [14] adds another category for the use of fragrance in marketing, namely, the use of promotional items. In the case of cooperation between Starbucks and Omni hotels, it is about placing fragrant stickers in local newspapers that hotel guests receive every day. The stickers contained the scent of blueberry muffins. The goal is to motivate customers to buy muffins, thereby increasing their sales at the Starbucks coffee shop, which was located directly on the hotel premises. Another example is the insertion of fragrances into direct mails through microencapsulation processes that are activated when the mail is opened.

#### **2.2 Touch and the tactile marketing**

The importance of touch has already been demonstrated in many studies. One of the best known, however, is Harry Harlow's experiment to find out if a child wants more from a mother's touch or nutrition. Macaque cubs were used for the research, which had to choose between two monkey imitations of the mother. One was made of wire, but provided the young with food, while the other was covered with a terry cloth, pleasant to the touch, but unlike the first, it had no milk. However, the results were unambiguous, the examined pups preferred to stay close to the cloth mother [2]. According to Grunwald [16], touch is an integral part of the healthy development of every youngster, but it does not lose its importance even in adulthood. It can be considered as the core of perception and the basis of communication with the world around. This most intimate sense accompanies people throughout their lives.

Hultén et al. [5] summarize academics' knowledge that touch can be felt through tactile receptors located in the skin. At any touch, these receptors send signals to a specific area of the cerebral cortex. This in turn allows human beings to feel and recognize heat, cold, roughness, smoothness, pain, or many other feelings.

Within the marketing of the senses, touch is represented by tactile marketing. Hultén [17] states that the aim of the strategy of using touch is primarily to strengthen the identity and image of the brand. This is done through the physical and mental interaction of the brand with the customer. Touching the products makes them easier to remember. This act also raises the expectation that customers will develop a positive relationship with the products. The possibility of touching products can even lead to impulsive purchases. At the same time, this fact is one of the answers to the question why some products are much more difficult to sell without physical contact and thus, for example, via the Internet, compared to products that can be caught or tested [18]. Gallace and Spence [19] state in their work that this is due to the "need for touch". Individuals with a higher need for touch are less likely to prefer shopping online than those with a lower need for a touch scale. Peck and Wiggins [20] distinguish between the instrumental and selfserving need for touch. They found that the effect of touch affects some people more than others. The fundamental difference lies in the individual preferences of customers, especially in the acquisition and subsequent use of information obtained directly through touch. Some customers prefer to evaluate products through physical contact and are even more frustrated if they cannot touch the product during shopping. Based on this, the mentioned need for touch is divided into two dimensions, namely instrumental and self-serving. For people with a higher instrumental need, touch is an opportunity to obtain relevant product information that they cannot obtain in any other way. For example, by reading the package leaflets or by visual inspection. Conversely, people with a high self-serving need tend to touch

#### *Sensory Marketing DOI: http://dx.doi.org/10.5772/intechopen.100378*

products only because it provides them with a degree of enjoyment. These people focus more on the sensory aspect of touch than on its very meaning. Boček et al. [4] consider the touch of the product and its grasp as a very important gesture in the purchasing process. The possibility of contact brings the customer closer to the product. This relatively new trend is leading manufacturers to constantly look for new efficient and impressive materials. Consistently selected materials that are used for a given product must arouse the consumer's desire to grasp the product and then use or consume it. One example is Microsoft, which has created a set of computer mice and keyboards with an imitation leather surface that is much more pleasant to the touch than a regular plastic surface.

#### **2.3 Taste and the taste marketing**

According to Krishna [2], human beings distinguish five basic tastes, namely sweet, sour, salty, bitter and umami. However, to be able to accurately distinguish between different tastes, we must involve all five senses. Therefore, when we cannot smell the food or see it, we can hardly recognize an apple from a potato or a red wine from a coffee. One of the reasons for this limited ability is the similarity of tastes. Based on this, it can be said that taste is largely dependent on other senses.

Taste is perceived primarily through the taste buds on the tongue. Research shows that the best taste capacity is found in newborns, in whom the taste buds are even on the inside of the cheeks. An adult has about 10,000 different taste receptors that register and send information to nerve cells. These then transmit individual signals directly to the brain [5].

Within sensory marketing, the taste is represented by taste marketing. The aim of taste-based marketing is to increase the quality of the product perceived by consumers and thus create new sources of inspiration that will affect the imagination and taste experience of the consumer [4]. Dani and Pabalkar [3] argue that food and drink tend to be strongly associated with happy or positive memories and that is why the taste aspects of marketing should not be neglected. Randhir et al. [7] consider taste marketing to be effective and relatively often used to influence customers through samples and tastings. Customers are more willing to buy a product they have already tried and tasted, rather than one they do not know. Taste marketing, therefore, of course, primarily concerns food products and their continuous improvement. Whether it's refining the natural scent or creating new taste harmonies. The current trend is to explore very subtle nuances and non-traditional connections in terms of flavor and composition of food products. An example is the French festival Chaumont-sur-Loire, where the menu presented an original and creative taste combinations of ice cream sundaes, such as mint with spruce, rose with lychee, apricot with ginger and the like [4]. According to Hultén [17], taste as one of the sensory strategies represents, as in previous cases, much more than just the taste itself. It is a symbiosis of all five senses. What the product looks like, smells like, sounds like how it is felt, it all merges into a concept called taste. For this reason, taste is often associated with the multisensory perception of the customer, which builds on the aforementioned interplay and synergies between different senses. Boček et al. [4] cite as an example sparkling candies that crack in the mouth, thereby stimulating the perceptions and feelings of the consumer. Or lightweight, aerated chocolate that evokes a feeling of lightness. This is where the impact of tactile marketing can be seen. Martin [21] adds that the synthesis of touch and taste is a bit stronger. It is based on the case of Mondelez, which launched a wave of criticism by deciding to change the classic rectangular shape of "Cadbury's Dairy Milk" chocolate products to slightly curved. However, the original chocolate recipe has been preserved. Nevertheless, many customers complained that the newly shaped chocolate tasted too sweet. Another proof of the interaction of two different senses is Professor Charles Spence's experiment, in which participants had to assess whether the tasted potato chips are more or less crunchy, as well as whether they are more or less fresh. Participants were given headphones, through which the sounds of crunching were gradually released during consumption, in various frequencies and intensities. Most volunteers agreed that potato chips taste different. Chips in which volunteers heard louder, higher and more penetrating crunching were in most cases rated as fresher compared to those in which the sound of crunching was much softer. In fact, it was the same product, the only difference being the different sounds, which evoked different characteristics in the minds of consumers [22]. Randhir et al. [7], in turn, mention the importance of linking flavors and colors, which plays an important role, especially in the product packaging design process. Researchers have found that there is a relationship between taste and color. People associate certain tastes such as sweet, sour, hot and salty with shades of red, green, blue or yellow. The case of Coca-Cola also shows how significant the color of a product's packaging can be on the perception of its taste. The company has created a limited edition of white cans. However, customers did not welcome this change with enthusiasm. Many even claimed that the company had changed the drink's recipe.

#### **2.4 Hearing and the audio marketing**

Richtáriková [23] classifies hearing among the sensory organs that develop first in humans. As early as the twelfth week from conception, the child can distinguish between individual vibrations and resonances, even though the ears are not yet formed during this period. Human life is full of sound information to which a person is exposed every day.

Sounds activate the emotional part of the brain, which in turn creates feelings and emotions, forming a person's mood. It is a process that takes place subconsciously and continuously 24 h a day [24]. Thus, according to Hultén et al., the sense of hearing is constantly active and cannot be switched off. Human beings live in symbiosis with sound and through it largely determine the individual dimensions of their lives. They are even able to memorize certain sounds for a long time and then recall them in conjunction with memories that relate to the moment of the initial hearing.

Within sensory marketing, the sound is represented by audio marketing. Marketers have been using sound for quite some time to increase the power of point-of-Sale enjoyment. From the pulsating music of teen stores to the soothing sounds of running water in luxury spas, the sound is at the heart and an important part of experiential shopping [2]. Kovanda [6] refers to an article in the Journal of Applied Psychology in which its authors have shown that typical French and typical German music has a significant influence on consumer behavior. If French music is currently playing in the supermarket, customers are more likely to buy French wines. If there are any German songs, customers prefer German products without realizing the influence of music on their choice. According to Siekela [9], properly chosen music in the store can lead to a strengthening of the overall atmosphere and also promotes the feeling that the customer belongs to the environment. Krishna [2] also argues that music also affects the perception of the time customers spend in the store. If they like the music playing in the background, they feel like they have spent less time in the store. However, the opposite is also true, and so if the music is unpleasant for customers, they tend to say that they spent more time in the store, even though they were only in the store for a short time. The tempo of the songs has a similar effect on the perception of time. Kovanda [6] justifies this by the fact that fast music increases the number of heartbeats per minute, which can arouse the

#### *Sensory Marketing DOI: http://dx.doi.org/10.5772/intechopen.100378*

body. This excitation can be explained as the acceleration of the operation of the "inner mental clock" compared to the perception of the passage of objective time. It is also important to choose the volume of the scenery or the distribution and intensity of the music. For example, in fitting rooms, the music should play quieter than in the sales area. While loud music can create a pleasant atmosphere in a store and encourage customers to buy, in fitting rooms such music can be distracting [9]. Batey [25] adds that in addition to creating a sales atmosphere or increasing sales, music is also used as part of the brand identity or audio logo. The use of sound or music tracks as part of the product affects the perception of the brand and also helps to increase its recognizability. Compared to visual instruments, music is judged to be more effective and more memorable. While customers may not be able to draw a brand's logo from memory, they will probably be able to sing a few tones from its audio logo. A successful, albeit a largely specific example of linking music to brand identity, is Unilever, which has decided to invest in packaging redesign under its Ax/Lynx brand based on research confirming the effect of aerosol sound on the perception of the pleasure or power of deodorants. The aim was to change the entire nozzle technology, with the result that today the sound of the Ax/Lynx spray intended for young men sounds much louder when applied than the soft sound of women's deodorant Dove [22].

#### **2.5 Sight and the visual marketing**

Hultén et al. [5] argue that vision is something we must learn. In fact, a newborn baby looks at the world upside down because it takes quite a long time for the brain to learn to turn the image right up.

Dani and Pabalkar [3] consider sight to be the strongest of the five senses, as up to 80% of the information is obtained through it. The connection between the brain and the eyes is very fast. Human beings need only 45 ms to visually identify an object standing in their field of vision.

Within the marketing of the senses, sight is represented by visual marketing. Randhir et al. [7] state that visual marketing strategies focus on the meaning of sensory expressions such as color, light, theme, graphics, but also spatial arrangement. Together, they participate in the creation and evaluation of the identity of the brand. From these sensory expressions, Pajonk and Plevová [11] subsequently define two primary aspects, namely color and light. Marketers pay increased attention to this aspect in visual marketing. Both aspects perform several functions. It is, for example, an effort to arouse the customer's interest, optimize the conditions of purchase, or achieve compliance between the offer and consumer expectations. In the professional literature, we also encounter the statement that the perception of colors is given by the prehistoric period of harvesting and hunting when women needed to distinguish the shades of ripe and unripe berries. At present, human beings follow certain established codes and thus stop at red, green means safety, yellow and black mean risk. Everyday activities are based on color signals [15]. According to Pajonk and Plevová [11], consumers are aware of colors based on subliminal perception. The human mind creates color associations and thus models opinions before one realizes what he is really looking at. Based on this, it can be stated that colors play an important role in shaping perception. Dannhoferová [26] states that the color image that the visual system conveys to people does not correspond exactly to reality. It is not only affected by the quality of vision, but also by the experiences of individuals themselves. The perception of colors is different for each person and changes throughout life. Last but not least, colors also have a symbolic meaning associated with a certain cultural environment, which is, with certain exceptions, permanent. Properly chosen colors can positively affect the

identity of the company and the brand. The aim is to ensure that colors evoke positive feelings in customers while making it easier to identify the brand [5]. Nagy [27] cites the Financial Times, which has been printed on salmon-colored paper since 1893, as an example of brands for which color is an integral part of their corporate identity. This helps them to differentiate themselves from the competition. Another example of how a company can express its values in color is Google, which has chosen to use playful rainbow colors for its logo. However, the order of colors is interrupted by the green letter L, which brings a message to the logo that the company does not follow the prescribed rules, but brings something new. Boček et al. [4] point to the fact that colors can also affect other sensory perceptions. There are associations between color and specific scent, and any deviation creates inconsistencies. For example, the combination of vanilla with a blue-green color. Another example is linking colors with sounds. It has been shown that a certain degree of illumination in a color environment partially attenuates unpleasant sound frequencies. Therefore, in a noisy environment with sharp tones, it is advisable to use darker colors, and vice versa, lighter colors in an environment with lower sound frequencies. Similarly, it is possible to work in connection with other senses, when individual tastes correspond to certain colors, or when colors can affect the perception of weight, area or volume. Another important factor in visual sensations is the intensity of light. Pajonk and Plevová [11] claim that the light is used in the store primarily to facilitate orientation, thanks to a sufficient level of brightness and contrast. Furthermore, it should contribute to the creation of a pleasant atmosphere that will have a positive effect on the psyche of customers. Its task is also to draw attention to the goods and thus increase its attractiveness. Palfiová [28] divides lighting in the store into basic and accent. The task of basic lighting is primarily to achieve the required level of light in the room, according to basic hygiene and safety standards. Accent lighting is given by the specific requirements of the store, but also by the type and nature of the exhibited goods. Emphasis is also placed on the angle of illumination, intensity and color shade of light.

#### **3. Experiment: the influence of sight on the perception of product value**

Whether as academics or as practitioners, we are now increasingly encountering applications and the use of senses in marketing. However, the issue as such still provides considerable scope for discovering new contexts [29–31]. This part of the chapter will present a partial output of a series of experiments that, based on qualitative research, produced empirical material for the development of a basic model for the application of sensory marketing tools to business practice. The main goal of the series of experiments was to identify the influence of human senses on customer behavior. By decomposing the given goal, it was possible to define 5 sub-goals dedicated to clarifying the influence of:


#### *Sensory Marketing DOI: http://dx.doi.org/10.5772/intechopen.100378*

As part of the presentation of selected findings, we will approach both the process and the results of the experiment. The present experiment focused on the evaluation and quantification of the influence of sight on the perception of the product value. Sight is considered to be the strongest of all the senses, as up to 80% of information is obtained through sensory perception.

#### **3.1 Characteristics of the research sample**

The research sample consisted of university students of the bachelor's study program focused on business and entrepreneurship in the age range from 17 to 25 years. In such a specific group, the passivity of sensory perception is eliminated, which gradually worsens with age in most human senses. The possibility of thematic incompatibility from the point of view of the composition of the experiments is also eliminated. For the purposes of the experiment, the students were divided into three groups, namely two experimental samples (in this case 2 separate series of images) and one control group. The total number of participating students was 47. The number of tested persons within individual groups was given by the spatial and procedural possibilities of the experimenters.

#### **3.2 Characteristics of the course of the experiment**

The experiment was carried out in the sequence of projection of sensorystimulating presentation and a subsequent reference video. Within the two experimental samples, participants were stimulated based on two different presentations shown in the preview of the following **Figure 1**.

The purpose of the presentations was to stimulate the perception of the participants in the experiment. Each presentation consisted of a group of fourteen different images thematically defining the nature of the stimulation.

The first set of images in **Figure 1a** is based on the Paris theme and it aimed to evoke in the participants of the experiment feelings associated with luxury or a higher standard of living.

**Figure 1.** *Visual stimulation: (a) luxury; (b) poverty. Source: [32].*

The second presentation is shown in **Figure 1b** showed the poor part of an undefined Indian city, thematically it was supposed to evoke diametrically different associations. Subsequently, the participants of the experiment were shown a reference video, which took the form of a virtual tour of the model apartment.

The control group was shown a reference video without prior sensory stimulation. A preview of the video can be seen in the following **Figure 2**.

For the purposes of the experiment, the experimenters tried to present a neutral product for subsequent evaluation, which in this case represented an empty apartment. Apart from the kitchen unit and the basic bathroom equipment, the apartment did not contain any other disturbing elements. As the intention of the composition of the reference video was to eliminate as much as possible the influence of the apartment equipment on the overall perception of its value.

After a short virtual tour of the apartment, the participants of the experiment had to use a scale to evaluate how the apartment affected them (on an 11-degree Likert scale ranging from very cheap (�5) to very luxurious (+5)).

#### **3.3 Methods used for processing the results of the experiment**

Verification of the set goal was carried out by evaluating two research hypotheses, namely:

**RH1**: *We assume statistically significant differences in the evaluation of individual experimental groups at the level of the mean value, resp. distribution function*.

**RH2**: *We assume statistically significant differences in the evaluation of the experimental groups and the control group at the level of the mean value*.

The research hypotheses were statistically verified by a set of 3 tests, namely:

• Mann-Whitney test (Eq. (1)):

$$U' = n\_{\mathcal{V}} n\_{\mathbf{x}} \frac{n\_{\mathcal{V}}(n\_{\mathcal{V}} + \mathbf{1})}{2} - R\_{\mathcal{V}} \text{, pričom platí} \\ U = n\_{\mathcal{V}} n\_{\mathbf{x}} - U'. \tag{1}$$

**Figure 2.** *Reference video. Source: [32].*

where *nx*—number of observations, resp. the extent of the *x*th file; *ny*—number of observations, resp. the extent of the *y*th file; *Ry*—the sum of the order of the *y*th file; *U*, *U*<sup>0</sup> —test statistics.

• Kruskal-Wallis test (Eq. (2)):

$$Q = \frac{\mathfrak{1}\mathfrak{2}}{n(n-1)} \sum\_{i=1}^{I} \frac{T\_i^2}{n\_i} - \mathfrak{3}(n+1) \tag{2}$$

where *n*—number of observations, resp. file range; *ni*—number of observations in the *i*th group; *T*<sup>2</sup> *<sup>i</sup>* —the total number of orders in the *i*th group.

• Kolmogorov-Smirnov test (Eq. (3)):

$$D\_{\boldsymbol{\eta}\_1, \boldsymbol{\eta}\_2} = \sup\_{-\infty < \boldsymbol{\infty} < \infty} |F\_{1, \boldsymbol{\eta}\_1}(\boldsymbol{\infty}) - F\_{2, \boldsymbol{\eta}\_2}(\boldsymbol{\infty})| \tag{3}$$

where *F*1,*n*<sup>1</sup> ð Þ *x* –empirical distribution function of the first choice; *F*2,*n*<sup>2</sup> ð Þ *x* empirical distribution function of the second choice.

All analyzes and calculations were realized in MS Excel, Statistica 13.4 and Statgraphics XVIII.

#### **4. Experiment evaluation**

The results of the performed experiment are characterized using basic moment characteristics and subsequently statistically verified using the apparatus of methods identified in the previous section. The following **Figure 3** shows the response rates of each group of experiment participants.

As can be identified from **Figure 3**, we observe the largest number in the mean value of the presented scale, which is at the same time in the case of both experimental groups their mode (*x*^*<sup>A</sup>* ¼ *x*^*<sup>B</sup>* ¼ 0).

In the case of the control group, the most numerous scales selected is �3. The agreement in the case of experimental groups is also monitored at the level of variance (*RA* = *RB* = 4).

**Figure 3.** *Frequency of responses of individual groups of experiment participants. Source: own calculations.*

**Figure 4.** *Comparison of the distribution function of experimental groups. Source: own calculations.*

**Figure 5.**

*Box plot answers of each group of experiment participants. Source: own calculations.*

**Figure 4** shows the distribution function within the experimental groups as follows:

As can be seen in **Figure 4**, the differences in the distribution functions of the two experimental groups are minimal, resp. none (K-S = 0.487; p = 0.051).

At the same time, we monitor compliance at the level of mean values (W = 132.5; p = 0.620).

We state that the set of presented images in **Figure 1a** and **b**, namely, luxury and poverty visual stimulations does not have a statistically significant effect on the subsequent evaluation.

Research hypothesis **RH1** is *rejected*.

The conclusions resulting from the evaluation of frequencies (**Figure 3**) are reflected in the structure of the results captured by the box graph (**Figure 5**) as follows:

We observe the already confirmed relationship between the two experimental groups and their statistically significant difference compared to the results of the control group (Q = 9.049; p = 0.011).

Research hypothesis **RH2** *cannot be rejected.*

The set of presented images in **Figure 1**, regardless of their nature, influenced the subsequent evaluation of the reference video. Thus, the influence of sight on the perception of the value of the product was confirmed.

**Figure 6.**

*Model of application of sensory marketing tools. Source: own processing based on [32].*

## **5. Model of application of sensory marketing tools**

Based on a theoretical examination of the issue and subsequent empirical verification of the effectiveness of sensory stimulation to influence consumer behavior, it was possible to compile a basic model of the application of sensory marketing tools in business practice. The model is formed by the investigated senses arranged on the basis of the order of their proven effectiveness in the experiments.

The model shown in **Figure 6** can be seen as a basic qualitative concept of variables, the correct application of which can effectively stimulate consumer behavior.

The smell was identified as the most effective sense of stimulation, given the theoretical assumptions identified in the literature study, this finding was largely expected. As this is a sense that has been dominant since the very beginning of human existence, much of the stimulation takes place against the background of active perception. By actively stimulating this perception, it is possible to achieve a behavior change oftentimes without realizing the stimulus of the stimulation itself. The result of the stimulation thus appears to the object as its natural decision.

The second in the order of the dominant senses that responded to stimulation is touch. Again, this was not a surprise, as in the case of smell, in the case of touch it is a basic sense that produces perceptions predominantly in the subliminal form.

The senses generating stimuli of a conscious nature are arranged in the sequence of sight, hearing and taste. In the case of stimulation of these senses, it is necessary to use more sophisticated procedures, because due to the nature of the senses themselves, the perception of the stimulus is literally conditioned by increased levels of attention. Especially in the case of taste, combined stimulation across multiple senses is necessary.

#### **6. Discussion of theoretical and empirical findings**

The experiments performed by us confirmed to a large extent the assumptions that were defined based on a study of the literature. The fundamentals of the issue can therefore be summarized as follows.

#### **6.1 Smell**

The smell is one of the first developed senses. People can distinguish and remember more than 10,000 different scents. The uniqueness of smell in comparison with other senses lies in its direct connection with memory. This physical as well as nervous proximity of the systems are the primary reason that people can keep the information gained by the smell in memory for much longer than that which they obtain through other sensory sensations. It is one of the most sensitive senses, up to 75% of human emotions are generated by smell. Whether a scent evokes positive or negative emotions in a person depends primarily on his/her individual memories. Within sensory marketing, smell is represented by scent marketing. The use of scent marketing is divided into two basic categories:


In our experiments, smell turned out to be the most dominant of the senses for application in sensory marketing.

#### **6.2 Touch**

Touch can be considered the core of perception and the basis of communication with the outside world. This is the most intimate sense that accompanies human beings throughout their lives. Touch can be felt through tactile receptors located in the skin. When touched, receptors send signals to a specific area of the cerebral cortex, which in turn allows human beings to feel and recognize heat, cold, roughness, smoothness, pain or many other feelings. Within the marketing of the senses, touch is represented by tactile marketing. The aim of the strategy of using touch is primarily to strengthen the identity and image of the brand. This is done through the physical and mental interaction of the brand with the customer. Touching the products makes them easier to remember. The need for touch in marketing is divided into two dimensions, namely:


Touch, right after the sense of smell, occupied the second place in terms of importance in the results of research into the influence of the senses on consumer behavior. Although it is not primarily a conscious stimulant, it undoubtedly plays an important role in consumer behavior through the subconscious.

### **6.3 Sight**

Sight is the strongest of all five senses. Up to 80% of information is obtained through it. The connection between the brain and the eyes is very fast, human beings only need a few milliseconds to visually identify a particular object. Within the marketing of the senses, sight is represented by visual marketing. Visual marketing strategies focus on the meaning of sensory expressions such as color, light, theme, graphics and spatial arrangement. It is possible to designate primarily two sensory expressions, namely:


The human mind creates color associations by which it models opinions before the individual realizes what he/she is really looking at. Based on this, it can be stated that colors play an important role in shaping perception. There is an association between color and specific scent, where any deviation creates a discrepancy. We can also find a connection between colors and sounds in the literature. It has been shown that a certain degree of illumination in a color environment partially attenuates unpleasant sound frequencies. The light serves in the space primarily to facilitate orientation through the level of brightness and contrast. The literature calls this purpose basic lighting. The role of lighting is also to creat a pleasant atmosphere or directing customers' attention to specific goods. The literature also refers to this purpose as accent lighting. In the case of the presented experiment, both colors and light were taken into account in the visual stimulation composition of the research sample. The experiment clearly confirmed the influence of sight on the perception of the value of the product. As it was directly influenced by the factors of color and light, we cannot determine exactly. But even here the proven rule of architecture applies that luxury is defined by light and space.

#### **6.4 Hearing**

Hearing, along with the smell, is one of the first developed senses. Human life is full of sound information to which a person is exposed every day. Sound activates the emotional part of the brain, which in turn creates feelings and emotions. This forms a person's mood. It is a process that takes place continuously and subconsciously. Human beings live in symbiosis with sound and through it largely determine the individual dimensions of their lives. They are even able to memorize certain sounds for a long period of time and then recall them in conjunction with memories that relate to the moment of the initial hearing. Within sensory marketing, the sound is represented by audio marketing. Music influences, among other things, the perception of time spent by customers in the store. Perception is affected as follows:


The pace of the music itself has a similar effect on the perception of time. It is also important to choose the volume of the scenery, or the distribution and intensity of the music. The use of sound or a music track as part of a product affects the perception of the brand and also helps to increase its recognizability. Compared to visual instruments, music is judged to be more effective and more memorable. In our experiments, we demonstrated the connection between the genre of music and the perception of price. It is a well-known fact that sound is the core of experiential shopping.

#### **6.5 Taste**

Taste is perceived primarily through the taste buds on the tongue. An adult has approximately 10,000 different taste receptors. For people to be able to accurately distinguish between different tastes, they must involve all five senses. Therefore, when we cannot smell the food or see it, we can hardly distinguish an apple from a potato. Taste is thus largely dependent on other senses. Within sensory marketing, the taste is represented by taste marketing. The goal of taste marketing is to increase the quality of the product perceived by consumers and thus create new sources of inspiration that will affect the imagination and taste experiences. Taste is often associated with the multisensory perception of the customer, which builds on the interplay and synergies between different senses. In the literature, we encounter the following combination of senses:


In our experiments, we confirmed the need to combine taste with other senses. This is the only way to maximize the application possibilities that taste marketing offers.

#### **7. Conclusion**

The highly competitive environment of the global market is forcing companies to look for increasingly efficient approaches that will allow them to maintain an advantage in the fight for the customer. One such approach is the application of sensory marketing tools to brand-building processes. The issue of using the senses as a means of stimulating and influencing consumer behavior adds a whole new dimension to marketing. This is especially the dimension of building emotional relationships with customers. In this way, companies, through their brands, strengthen their corporate identity and memorability with their customers. At the same time, they provide customers with a unique shopping experience. Compared to traditional marketing, sensory marketing is much more sophisticated. It requires a much more individual approach and perfect knowledge of the market. Many wellknown companies have already mastered this secret of sales success and have built their sales-support strategy precisely on stimulating the individual senses of their customers. However, the diversity of this concept provides considerable scope for discovering new unexplored areas and ways of applying the issue both in the field of science and in business practice. The chapter aimed to bring the issue of sensory

#### *Sensory Marketing DOI: http://dx.doi.org/10.5772/intechopen.100378*

marketing closer to the general professional public while pointing out the fact that by applying sensory marketing tools to the general marketing portfolio, it is possible to embark on the path of sustainable brand development and holistic approach to business. The theoretical basis of the chapter defined the basic foundations of the issue. Through the presentation of a selected part of the results of a series of experiments aimed at examining the possibility of influencing consumer behavior by stimulating the senses, an empirical knowledge base was subsequently created for further research. From the point of view of the findings, it can be stated that targeted stimulation of the senses has a significant impact on the current perception as well as on the overall experience of individuals in the process of influencing consumer behavior. Through the synthesis of theoretical and practical knowledge, it was possible to compile a basic model for the direct application of knowledge to business practice.

From the point of view of the limitations of the research presented within the chapter, it is necessary to point out mainly the qualitative nature of the data. A thorough quantitative examination would be needed to confirm the relationship on a significant sample. The outlined trends identified based on the implemented qualitative research create the necessary knowledge base for such research.

From the point of view of the further direction of research, it is necessary to mention that the presented research is carried out within an extensive study of the issue of reputation management to examine the relevant factors that affect the sustainable brand building. Especially at a time of economic recovery after the end of the COVID-19 pandemic, it will be necessary to apply holistic approaches to sustainable development across the whole spectrum of (not only) management science.

#### **Acknowledgements**

This research was funded by the Slovak Republic scientific grant agency VEGA, grant number 1/0140/21.

The authors of the chapter would also like to thank the students who participated either in the actual implementation of experiments or in the processing of experimental results. Without their active involvement in the processes, the production of knowledge to the extent presented in the present text would not be possible.

#### **Author details**

František Pollák<sup>1</sup> \*, Jakub Soviar<sup>2</sup> and Roman Vavrek<sup>3</sup>

1 Faculty of Business Management, University of Economics in Bratislava, Bratislava, Slovakia

2 Faculty of Management Science and Informatics, University of Žilina, Žilina, Slovakia

3 Faculty of Economics, VŠB-Technical University of Ostrava, Ostrava, Czech Republic

\*Address all correspondence to: frantisek.pollak@euba.sk

© 2021 The Author(s). Licensee IntechOpen. This chapter is distributed under the terms of the Creative Commons Attribution License (http://creativecommons.org/licenses/ by/3.0), which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited.

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Section 2

Communication Management in the Times of Social Media

#### **Chapter 3**
