Transcript How Consumer Acquire, Remember, and Use Information

Information Processing:
Part I
MKT 750
Dr. West
Agenda
Information Processing Framework
Exposure
Attention
Comprehension
Retention
McGuire’s Model of Ad Effectiveness
Measuring effectiveness
Tactical Decisions
Consumer Information Processing
Stimuli
Exposure
Attention
Comprehension
Acceptance
Retention
Purchase
Measuring Advertising Effectiveness
McGuire Model Testing Ad Effectiveness
Exposu
Attentio
Comprehe
re
n
nsion
Success: p(E)
.8
Failure: .2
p(E)·p(A)
.8 x .7=.56
=.44
…
.8 x .7 x .7=.39
=.61
Yielding/
Accepta
nce
Retenti
on
Purcha
se
p(E)·p(A)·p(C)·p(Y)·p(R)
.8 x .7 x .7 x .6=.24
=.76
.8 x .7 x .7 x .6 x .8 =.19
=.81
Gaining Exposure
This occurs when there is physical
proximity to a stimulus
Selective exposure
Consumers deliberately try to avoid our
attempts to interact with them
Advertising, Direct mail, Telemarketing
Gaining Exposure
What’s a marketer to do?
Make your message involving
Taster’s Choice “Brewing Romance”
Campaign (circa 1990)
Product positioned as “tasting closest to
fresh brewed”
McCann-Erickson was hired to kick up the
emotional connection to the brand
“Brewing Romance” Campaign
UK Campaign quickly adopted an avid
following
British tabloids chronicled the series
Viewers wrote in for autographs
Campaign lasted for six years
Sales of Gold Blend soared by 40 percent.
Ended with Sharon and Tony wedding and
driving happily off into the sunset
The campaign was expanded to the US,
Canada, Chile, Australia, New Zealand, and
Japan
“Brewing Romance” Campaign
US Campaign launched in 1991
Generated a reaction similar to
the UK
The debut of each new “episode”
became a major media event,
often premiering on network shows
such as “Good Morning America.”
In February 1998, Taster's Choice
ran a contest. The results were
announced in Soap Opera Digest
Gaining Exposure
What’s a marketer to do?
Nontraditional approach
BMW’s re-launch of the Mini Cooper in 2002
“Giving a small car big 'tude: cute enough for kids to
ride, small enough to fit on top of an SUV and sexy
enough to be a Playboy centerfold, the new BMW
Mini launched with many guerrilla twists and turns.”
Brandweek
BMW assigned the new unit a paltry $40 million
budget and staff just big enough to fill, well, a Mini.
Nontraditional Approach…
BMW’s re-launch of the Mini Cooper in 2002
Kerri Martin was assigned to be the guardian of the
brand’s soul. She refused to consider a traditional launch
for the car. Instead she looked for novel ways to “create
buzz” about the brand.
Target Market: People who see themselves as risk
takers, nonconformists, and adventure seekers. These
individuals were not defined by their age but by their
spirit.
Objectives: Reach 25% brand awareness within one
year, and sell 20,000 cars.
Non-traditional Approach…
Magazine ads broke the mold
Mini is the first automobile to actually win bragging
rights as Playboy's Playmate of the Month in June. Ads
ran biographical photos of Mini's "youth" in London,
complete with cartoons on the flip-page.
Results
In the six months preceding the launch, the
website registered 210,000 leads.
55,000 visitors signed up to receive the email newsletter
Brand awareness levels went from zero to
25% in nine months, and up to 67% by June
2003.
Exceeded its sales goal, with 24,590 cars
sold in nine months.
Can there be too much exposure?
Overexposure
When your brand loses it coolness
Habituation
When a stimulus becomes familiar it loses it’s
attention getting power
Ads lose half their effectiveness after
accumulating 1,000 GRPs (approx 10 exposures)
Products are less attractive when everyone
else owns one
Avoiding Overexposure
Avoid overexposure through
Limited availability (scarcity)
Harry Potter
Use different ad executions carrying the
same message
Absolut Vodka
Tactical Decisions
Gaining Exposure
Channel/Medium: The general category for message
delivery
broadcast (TV, radio), print (magazines, newspaper),
direct mail & internet, outdoor …
Vehicle: The specific message carrier
The Apprentice, WSJ, COTA busses
Scheduling: How is the media budget distributed?
reach and frequency, breadth of coverage, seasonality
Consumer Information Processing
Stimuli
Exposure
Attention
Pre-attentive
Processing
Comprehension
Acceptance
Retention
Purchase
Turning Exposure Into Attention
Attention can occur when there is
activation of one or more of our five
senses.
Each of our sensory receptors has an
activation threshold
Weber’s Law: JND
The amount of change necessary to be noticed is
directly related to the intensity of the original
stimulus
Voluntary Attention
This refers to the conscious allocation of
processing capacity to a stimulus.
Selective Attention
Occurs when a stimulus is in line with
current goals or needs
Such attention is selective due to the
plethora of messages we are exposed to.
Involuntary Attention
Occurs due to a built in “novelty
monitoring” mechanism
Evolutionary hypothesis – survival was
best insured by attending to unusual
events in the environment
Triggers:
Size, Color, Contrast, Motion, Sounds are
noticed
Appeals to our hedonic side (food & sex)
are also noticed
Tactical Decisions
Getting Attention
Source: The person/organization sending the
message
Who: Spokesperson, Celebrity Endorser,
Salesperson …
Characteristics: Attractiveness, Likeability,
Familiarity, Similarity, Identification,
Trustworthiness, Expertise, Credibility
Tactical Decisions
Getting Attention
Message Execution: The technique or style
utilized in communication
Humor, Emotions, Fear Appeal, Informational,
Demonstration, Testimonial, Lifestyle, Jingle…
Comparative vs. Two-sided
Message Elements: Features of the message
Pictures versus words, color & contrast, size &
isolation, novelty & motion, music
Is Getting Attention Enough?
Attention may be short lived
You have to use attention well once you
have it
Attention should be used in the service of
building the brand, or attaining other
strategic goals
Comprehension
Refers to the meaning we assign to
a sensory stimulus
The most crucial process in CB
because…
What consumers perceive and remember
determines their actions!
Comprehension
Perceptions are often the heart of
marketing issues/problems.
Olay – P&G faced issues with “Oil of Olay”
being perceived as oily and old
Comprehension
Gestalt Principles:
Closure – we have a tendency to complete
a figure, or fill in the gaps
Processing effort – the effort devoted to
interpreting a stimulus leads to better
comprehension and memory
Figure/Ground – perceptions differ
depending upon what the individual sees
as figure (dominant) versus ground
(background).
Tactical Decisions
Improving Comprehension
Channel/Medium: High Involvement (print,
internet) vs. Low Involvement (TV and radio)
Source: Distraction and Affect Transfer
Message Content: Complexity, Ambiguity
Scheduling: Repetition
Information Processing:
Stimuli
Involvement
Exposure
Attention
Memory
Comprehension
• Sensory
• Short Term
• Long Term
Motivation
Ability
Opportunity
Acceptance
Retention
Tactical Decisions
Fostering Yielding/Acceptance
Source: Credibility, Similarity & Likeability
Message Execution: Stirring emotions, telling
both sides of the story
Scheduling: Mere exposure effects
Improved liking
Improved recall
Improved acceptance
The Importance of Memory
Marketers use memory-based criteria to
judge the effectiveness of their efforts
Ad claims – e.g. day after recall
Package and brand recognition
Beliefs and brand associations are
indicators of “brand equity”
The Memory Process
Relationship of Memory Stores
Encoding & Retrieval
Incoming Information
Exposure
Sensory Memory
Attention
Signal
Strength
Pertinence
Short Term Memory
Encoding
(Rehearsal)
Retention
Retrieval
(Cues)
Long Term Memory
Facilitating Encoding
Elaboration
Closure
Repetition & Rehearsal
Jingles
Generating Affect
Humor (tricky)
Personal Linkages
Autobiographical Memories
Facilitating Encoding
A Picture is Worth a 1000 Words
Memory for faces of high school classmates
was 75% correct up to 40 years after
graduation
Recognition rates for 600 ads! (Shepard)
Time Delay 0
% correct 98%
2 hrs 3 days 7 days 120 days
99%
92%
87%
58%
Feelings
Ads can evoke feelings or emotions
Hallmark, McDonalds, Kodak
There is a bias toward retrieving positive
memories which result in…
More feelings during an ad
More favorable attitude toward the ad and the
brand
Facilitating Retrieval
Encoding-specificity
Memory is context dependent, thus memory
performance is improved when contextual
cues present at encoding are retrieval are
the same
Summary
Exposure
Familiarity breeds liking while
tedium invites argumentation and criticism
Attention
Use attention well (to build your brand)
once you have it, or it will be short lived
Comprehension
Retention
Advertising is often used to set expectations
which influence our experiences
A brand’s message must remain the “figure” and
shouldn’t be overshadowed by other elements
Assignment
Read Chapter 16