Download Evaluating an Advertising Campaign

Evaluating an Advertising Campaign
MBA 854-March 6, 2002
Executive Summary
Have you ever thought about why you choose one soft drink over another? You probably
don’t even realize that the attributes of the product are somehow connected to your underlying
values. Do you think your values were at all influenced by advertising?
There are many different factors in one’s environment that can persuade an individual to
use a certain product or service. Marketers need to understand these influences to help them
develop effective advertising to persuade consumers to buy particular products or services.
One technique that a marketer can use to get at the qualitative factors influencing
consumer’s purchasing behavior is the laddering interview technique. In using the laddering
interview, a researcher is able to guide the consumer through a series of questions to get at what
specific attributes they find important in a particular product. The researcher will also need to
uncover the consequences of these specific attributes for the consumer. In other words, what are
the benefits to the consumer of the particular attributes of a product? From this, the researcher
will be able to determine the real reason the consumer chooses a certain product. This is the
value or end-state for the consumer. By understanding the attributes, consequences, and values
of the consumer, the researcher can then use the means-end approach to link these attributes,
consequences, and values into a “map” to then see a complex web of reasons why consumers
purchase certain products and what they hope to receive from their purchases.
From this “map” the researcher can use a MECCAS model to develop an advertising
strategy to effectively target specific consumer attributes, consequences, and overall values or
end-states that the consumer is driving for.
This paper will discuss in detail each of the points mentioned above and give the reader a
greater understanding in how to develop and evaluate an effective advertising campaign.
Introduction
The focus of our research is to present the techniques used to evaluate an advertising
campaign and explain why an advertising campaign may be effective and why it may not be.
Philip Kotler defines advertising as any paid form of non-personal presentation and promotion of
ideas, goods, or services by an identified sponsor (Kotler, 2001). Advertising is another form of a
common communication platform along with sales promotion, public relations, personal selling,
and direct marketing (Kardes, 2000). In developing an effective advertising program, five
critical decision-making factors are useful for identifying the target market and buyer motives.
These are known as the “Five Ms of Advertising,” which are explained in Exhibit I.
A common problem that is experienced by advertising managers is understanding
consumers at a strategic level. It is sometimes difficult to use the information that they do find
as the basis for developing alternative positions. One way to help understand the motivations of
consumers is the means-end approach. This approach takes into consideration the underlying
goals that people have and relates them to the attributes of a particular product. Our discussion
will explain the MECCAS model that can be used to evaluate an advertising campaign as well as
a particular interviewing technique, laddering, that is employed to ultimately discover people’s
underlying values. The laddering interviews flows into the means-end approach, which is then
used in the Meccas model.
Differentiation of a product alone does not necessarily make it sell. It is ultimately the
connection that a consumer perceives with a product that makes it desirable. The strength of the
means-end model is that it illustrates the most important elements that motivate people to buy a
product, and it also shows what the connections are between these motives and the attributes of
the product or service. We will also discuss the role of persuasion in advertising and how
people’s persuasion knowledge influences their responses to persuasion attempts This research
is important to companies so they can spend their advertising dollars more effectively. If the
underlying values of consumers are not aligned with attributes of a product, they will not be
interested in buying it.
Persuasion
From a practical marketer’s point of view, effective advertising is all about persuasion.
Collins COBUILD dictionary defines it as “the act of persuading someone to do something or to
believe that something is true”. Social scientists define persuasion as “an active attempt to
change beliefs and attitudes”. Therefore, developing persuasive advertising is a big task for
marketers. As a basis of developing this persuasive advertising, research about the nature and
development of persuasion knowledge and how people use it to interpret, evaluate, and respond
to influence attempts from advertisers and salespeople is for academic business scholars.
Persuasion Knowledge Model
The persuasion knowledge model (PKM) is a target and agent structure that presumes
that within individuals, people’s persuasion knowledge continues developing throughout their
life span. The PKM model presents three sources of persuasion to people. First, personal
experiences in social interactions with friends, family, and coworkers are the most powerful
source, since people trust those people more than others. Conversations about how people’s
thoughts, feelings, and behaviors can be influenced are the second source. Finally, in contrast to
the firsthand experiences of active learning, the observations of marketers and other known
agents are a more passive way of persuading others. Persuasion knowledge performs schema like
functions, such as guiding consumer’s attention to aspects of an advertising campaign or sales
presentation, providing inferences about possible background conditions that caused the agent to
construct the attempt in that way (Friestad & Wright, 1994). In sum, the Persuasion Knowledge
Model may offer a basis for gaining added insight about the processes of both consumer
behavior and social influence.
Given the importance of persuasion sources and processes, five persuasion principles by
Robert Cialdini give marketers meaningful foundation in developing effective and persuasive
advertising. Information asymmetry was a major advantage for marketers to persuade consumers
since consumers mainly rely on the information which marketers offer. However, a new Internet
paradigm with technology support allows consumers access to tremendous amounts of
information, and it is becoming another threat for companies, weakening their traditional
strategy. Companies choose their strategy in the matrix of two dimensions between price and
differentiation.
But surprisingly enough, people tend to rely more on one important piece of information
and respond to it, rather than identifying and analyzing each relevant piece of information when
making a decision. Of course, people will make trade-offs between their personal time and
finding a lower price based on their personal value system under different constraints and
situations. Many studies show that even price-sensitive consumers tend to keep purchasing from
one store once they believe that that store offers the cheapest products. Once consumers trust a
sales person or other experts, they tend to believe the information from that source without
further information searching.
This highly reliable single piece of information is used as a “ trigger”, corresponding with
fundamental, powerful principles of psychology and studies of human behavior (Cialdini, 1985).
Reciprocation is the first trigger for compliance in the decision making process of persuading
customers. Reciprocation governs the making of concessions in a negotiation situation. Direct
and high involvement forms more favorable attitudes toward subjects. The second trigger is
scarcity, in which people try to seize those items and opportunities that are scarce or are
becoming unavailable. People tend to feel special about rare things, contrasting to the need of
assimilation to others. This is the strategy of high-end premium products, which are affordable
for a small number of privileged people. The willingness of people to follow the suggestions of
someone whom they see as a legitimate authority is the third one. People tend to listen to their
parents, professors or bosses because they consider them trustworthy and responsible.
Consistency is the fourth trigger, which builds robust belief and attitude over time. If the
messages from one source is not consistent and tends to be changed fundamentally, people may
doubt the truthfulness of it. Consistent messages affect the mindset of people in that the
messages are truth. At last, social validation is when people are more influenced to perform an
action or hold a belief when they see that others are doing so. People don’t want to be an extreme
outlier in terms of social norms that “everybody” agrees to and assumes there are no exceptions.
Persuasion is a complex topic. In fact, it is so complex that marketers are not convinced on how
to effectively choose from their alternatives. However, marketers should be able to better harness
and direct the influencing process for effective persuasion by understanding and using persuasion
principles (Cialdini, 2001).
Laddering
The laddering interview technique is one method for identifying consumer’s means-end
chains. It is a semi-structured, qualitative method in which respondents are asked a series of
questions about a particular product or service (Olson &Reynolds 2001). They answer by
describing freely why an attribute is important to them. Usually, the interviews are structured so
that they have an agenda or an end goal, and the questions are formed to gain additional insight
into the consumer’s motivations to buy a product. The laddering method is different from
normal research interviews like focus groups because it is aimed at finding more abstract reasons
for choosing a brand. Typically, only attributes and benefits are sought as reasons for usage.
Interview Method
Laddering begins by identifying the most important distinguishing attribute of a product.
Attributes are in products. For example, when choosing a type of soft drink, a person might
choose “low or no calories” as a basis for purchase. From here, the interviewer tries to move the
respondent up the ladder to different levels of abstraction. This is accomplished by asking
questions such as: “Why is a low calorie drink important to you?” The answer or answers to this
question are the results of consuming diet soda. They are the consequences of the attribute. In
this situation, a consumer might answer this question by saying that low calorie beverages help
with weight control or that they are a healthier alternative to sugared beverages. This, in turn,
can lead to the top rung of the ladder, which is associated with values. Values are the ends or
high-level states that are reached. The value that is discovered in this interview might be selfesteem or “feeling good about yourself.”
Advantages
Laddering starts out by asking respondents to make distinctions about perceived
differences between brands or products. The advantage of this technique is that distinctions can
be framed into different choice situations with specific sets of competitive alternatives. This
provides the best results because the respondent is able to make a decision in the correct context.
For instance, when interviewing a consumer about their choice of beer, he or she might choose a
different brand depending on where they are or who they are with. If a consumer is planning on
drinking beer at home with his family, he or she might choose Miller Lite. It is relatively
inexpensive, flavorful, and it has fewer calories than regular beer. On the other hand, if a
consumer is out for drinks with clients or on a date, he or she might choose to drink Bass. This
beer is a more expensive, full-bodied beer. It is perceived more as a beer that a successful person
might drink. The premium brand attribute of this beer is connected to the value of success in the
MECCAS model.
By discovering consumer beliefs and attitudes within the context of behavior, laddering
overcomes a major problem of most attitude research where distinctions might not be connected
with choice. In this case, important choice criteria might be associated with less meaningful
distinctions. This might explain why attitudes do not always predict behavior, but attitudes
toward choice behavior concerning the object frequently do.
Disadvantages-Blocking
One of the biggest problems in laddering is when respondents become blocked at one
level and are not able to move on. This problem can be resolved by some prompting from the
interviewer. They should not put words in the consumer’s mouth but should give them some
general guidance. Several techniques are available to overcome blocking such as “reiteration of
occasion” where the interviewer reminds the respondent of the occasion that the ladder is
referring to. “Alternate scenarios” are used where the interviewer asks the respondent to think of
a similar scenario to the one being discussed. This sometimes gets the ball rolling. Negative
laddering questions can be used, which probes to find the respondent’s reasons for not wanting to
do something or to feel certain ways.
Sometimes respondents will give very plain answers that don’t really mean anything. For
example, they may say that they feel satisfied. But, what does that really mean? Are they
pleased with the product or just not upset with it. Slang can be misinterpreted or a respondent
might give more than one answer. Another common response to questions during a laddering
interview is: “I just like it.” This can be handled by simply asking: “Why do you like it.” You
may get an acceptable answer or a “because I do.”
Laddering Analysis
After recording the results of the interview, the responses should be grouped as an
attribute, consequence, or value. From this grouping, a hierarchical value map (HVM) can be
constructed. This “summary map” minimizes the redundancy between perceptual orientations
and makes them easier to contrast and assess. The HVM identifies the key content elements of
the study and the associations that give meaning to the differences that consumer perceive
between competitive products (Olson & Reynolds, 2001). The goal at this level is to focus on
meanings that are central to the purpose of the study. It should be noted that the term Consumer
Decision Map (CDM) is used in situations where the map represents how people make decisions
rather than just how their thoughts are organized.
Applications
There are several options available to apply the data that is obtained by using the
laddering technique. Once all of the responses are organized into an HVM, valuable information
can be pulled. For instance, you can segment consumers according to their values associated
with a particular product class or brand, assess brands or products in a traditional manner,
evaluate competitive advertising, or use the information as a basis for developing advertising
strategies.
Segmentation
By using segmentation, respondents can be grouped according to a particular aspect of
their behavior, attitudes, or dispositions in a way that lets us understand the consumers more
thoroughly. The final values that are reached at the top of the ladder may be used to classify the
consumers, or the connections between the attributes and values may be used. Once the
segmentation scheme has been created, consumer behavior regarding brand choice can be
assessed. An example of this could be linked to the scenario we discussed earlier about the beer
choice. Attributes such as “premium” are linked to higher-level values such as achievement.
These links illustrate common reasons why one brand is chosen over another in specific
situations.
Product-Brand Assessment
Laddering can also be used to evaluate a product or brand. In this case, it is beneficial to
allow respondents to use their own frame of reference rather than being guided by pre-set
questions. This facilitates getting to the higher-level consequences and values rather than
focusing on the simple attributes of a product or brand. The output from laddering, coupled with
the unique analytical procedures it allows, provides the researcher with a better understanding of
the basis on which consumers make distinctions between competing brands (Olson & Reynolds,
2001). It is often the case that marketing decisions are made on discrimination differences and
not on preference differences. Using the laddering approach allows the consumer to be studied
in a way that helps a marketer understand the choices being made in a consumer’s own context.
Assessing Advertising
Another way to use the results from laddering is to discover what people really think
about certain types of advertising. Advertising can be looked at in different ways when it is
perceived in the context of the different levels of attributes, consequences, and values. This is
done by showing a group of respondents a series of advertisements soon after they complete a
laddering exercise. At this point, the respondents are in tune with their feelings about why they
make choices when deciding between two products. After viewing the ads, they are asked to rate
them on the extent to which the ad communicates at each level and to provide some comment on
why it does or does not communicate at that level.
An analysis of the results is conducted, and the statements that are compiled are used to
assess the communication at the various levels. In some cases, it is found that ads are effective at
communicating at the attribute level but not at the higher consequence and value levels. On the
other hand, some ads may communicate at the value level but not at the attribute level. The most
effective ads are the ones that communicate at all levels with a logical link between attributes
and values.
Advertising Strategy
The development of advertising strategy is the probably the most important benefit of the
laddering technique in the advertiser/marketer’s eyes. It provides the most applicable insight that
can be used to create effective television commercials and print ads. The levels of abstraction
framework that was discussed underlie the formation of the means-end chains and provide a
basis for coordinating the results of laddering to advertising strategy development. In the next
section, we will discuss how this framework is used in the MECCAS model.
Means-End Approach and the MECCAS Model
To successfully position a product in today’s competitive marketplace, a manager needs a
set of tools to help identify personal motivations of consumers to then develop a strategic
position for the product or service. One tool that a manager can use is the Means-End approach.
The means-end approach is an umbrella term that refers to a set of methods for interviewing
consumers about the reasons for their decision choice and then interpreting those responses in
terms of linkages between outcomes. (Olsen & Reynolds 2001). It is based on sophisticated
research such as laddering interviews that investigate human values and studies what attributes
and consequences consumers seek in products. A means-end chain links attributes of products
(the means), consequences of these attributes to the consumer, and the personal values (the ends)
that the consequences reinforce. (Gutman, 1982). Attributes are features of a product or service
such as the size, aesthetics, horsepower, or trunk space of an automobile. The consequences are
what the consumer anticipates to receive (benefits) or avoid (detriments) when consuming the
product or service. Continuing with the car example, consequences could be status, safety, resale
value, or breakdowns (negative consequence). Values represent beliefs people hold regarding
what is important in life. They pertain to end states or behaviors that people desire in their lives.
(Schwartz, 1992).
Every meaningful act of consumption can be seen as an attempt to achieve some value
end-state. The means-end theory states that customers have value end-states in which they will
choose products as a means of reaching those valued end-states. The linkage of the product to
the consumer spans three basic levels. The product-specific level, or attributes, is where the
physical and abstract characteristics of the product or service are. These are immediate, tangible,
physical experiences. The person-specific level is where the values or desired end-states are.
These are more emotional, social, and include how the consumer personally feels. The third
level is the linkage between the other two levels. This linkage is the consequences (of
consumption or use), which comprise both positive and negative aspects. Some consequences
can be positive for the consumer while negative consequences are something the consumer will
likely want to avoid.
Benefits of the Means-End Theory:
The benefit to the means-end theory is that is shows not only what key elements motivate
consumers, but also what the connections are between these motives and the tangible product or
service attributes. (Olsen & Reynolds 2001). The means-end framework incorporates all levels
into a conceptual model that focuses on the associations between the levels as well as the levels
themselves. A consumer’s sequence of attributes, consequences, and values (A-C-V) associated
with a product is called a means-end chain and represents a perceptual orientation of decision
criteria. After interviewing different consumers (laddering interview technique), a series of
means-end chains can be constructed. This “map” of A-C-V chains is called a Hierarchical
Value Map (HVM). The HVM identifies the key content elements of memory and the
associations that give meaning to the differences that consumer’s perceive between and among
competitive products (Olson & Reynolds, 2001). The following is an illustration of an HVM map
showing three attributes linked to two consequences, linked to two value end states.
V1
V2
A = Attributes identified by the consumer
C1
C = Consequences to the consumer
V = Vales or means-end states for the consumer
A1
C1
A2
A3
The dominant perceptual orientation should be the products positioning in marketing and
advertising efforts. The conceptual constructs developed in the HVM can be used as the basis
for developing an advertising strategy to appeal to those consumers with those particular valued
means-end states.
MECCAS Model:
The Means-Ends Conceptualization of Components of Advertising Strategy (MECCAS) model
is a tool to be able to help provide a procedure for applying the concept of means-end chains to
the creation of advertising messages. The MECCAS model is made up of five components that
correspond to the values, consequences, and attribute levels in the laddering interview technique
and the mean-end model. Those components are the driving force, leverage point, executional
framework, consumer benefit, and the message element. The driving force relates to the value
orientation of the strategy or the end level focus of the advertising. It is the goal or the value of
the consumer. This relates to the goal or values of the consumer, and is the “V” in the A-C-V
chain. All the other points are really geared toward achieving the end level. The leverage point
is the manner by which the advertising will tap into or reach the key value that serves as the
advertisements driving force. The leverage point tells you which ladder in the HVM you are
moving toward to reach the end value or driving force. The executional framework is the overall
scenario or plot of the advertisement. It communicates the overall tone or style of the
advertisement. The consumer benefit is the major positive consequences (or detriments that the
consumer wants to avoid) for the consumer that the advertisement verbally or visually
communicates. This relates to the “C” in the A-C-V chain. The message elements are the
specific attributes or features of the product that are communicated verbally or visually that
support the consequences of using the product. This relates to the “A” in the A-C-V chain.
Using the MECCAS model allows the researcher to understand the motivation of the
customer, the positive attributes in the product in question, the anticipated consequences of the
attributes to the consumer, and the value-ends of the customer, and in using the words and values
of the customer directly, tailor the advertising appropriately to the consumer. It is basically a
systematic way to approach the creative side of advertising. The MECCAS model coupled with
the results of the HVM, allows the management to review several different strategies at once,
and when the final strategy has been chosen, it allows for a more systematic review of the
advertisement and what the final product should be. (Olsen & Reynolds 2001). Refer to
Exhibit 2 for an illustration of how the MECCAS model can be used in practice. On the left side
of the model are the five components of the MECCAS model. The center section of the
illustration is the strategy involved. Here one would list the specific attributes, consequences,
leverage point, and the value end-means that were identified in the laddering interview process.
The left side of the illustration is the executional framework or the specification of meanings or
connections. This is the overall tone of the advertisement. The generation of ideas to be the
executional framework can initially be developed by asking the question, “What will cause the
connection to be made?” (Olsen & Reynolds 2001). Once the ideas are generated for the three
areas on the left side of Exhibit 2, specific scenes can be developed to deliver the desired
meanings, which is the overall exectuional framework or tone of the advertisement. The goal of
the specification of meanings is to create specific creative ideas to reach the value end. The
“product bridge” connects the attributes of the product (message elements) to the consequences
for the consumer (consumer benefit). The “personal relevance bridge” links the consequences to
the consumer with the leverage point. The “value bridge” then links the leverage point to the
driving force, or the value means-end of the consumer.
The MECCAS model allows for the creation of advertising that identifies important
values of the consumer and relates those values to the anticipated consequences of the product,
and with the key attributes that cause those consequences. The tone of the advertisement then
communicates all this information to the consumer in an orderly fashion and takes into account
their attributes, consequences, and values that they identified in the laddering interview process.
This then becomes an important tool for both the creative consultants developing the
advertisement as well as the management of the company. It allows both parties to have a single
set of documents to systematically evaluate the advertising strategy for a particular product and
make certain that the message conveyed in the advertisement is consistent with what the
consumer has identified as being important to them.
Conclusion:
Understanding consumer’s perceptions and behavior is paramount in being able to
develop an effective advertising strategy for a company. According to Russ Klein of Whisper
Capital Investments, there is a trend in the industry to use more qualitative research in
developing appropriate advertising and brand strategies. Qualitative information can be acquired
by using the laddering interview technique, and then developing a means-end chain, which then
can be used in the MECCAS model. The MECCAS model is then used to develop an effective
advertising campaign that will link consumer’s attributes to their personal values using their own
words. This is an effective method to inform and persuade the consumer in their purchasing
decisions. The MECCAS model also gives the management of a company a reasonable way to
check the continuity of the message of the advertisement created by others. It allows the
management to look at a series of documents and compare consumer attributes, consequences
and values, and match them up to the value end-states created by the advertisement and the
leverage points used to move the consumer from the attributes and consequences of the message
to the value end-states.
Exhibit I
Message
Mission
Money
!Sales goals
!Advertising
objectives
!Stage in PLC
!Market share and
consumer base
!Competition and
clutter
!Advertising
frequency
!Product
substitutability
(Kotler, 2001)
!Message generation
!Message evaluation and
selection
!Message execution
!Social-responsibility
review
Measurement
!Communication
impact
!Sales impact
Media
!Reach, frequency, impact
!Major media types
!Specific media vehicles
!Media timing
!Geographical media
allocation
Exhibit 2
MECCAS
Strategy
Driving
Force
Value End
Leverage
Point
Links
attributes and
consequences
to the driving
force
Consumer
Benefit
Specification of meanings (connections)
Value Bridge
Personal Relevance Bridge
Consequences
Product Bridge
Message
Elements
Attributes
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