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Information Processing: Part I Dr. West Agenda • Information Processing Framework – Exposure – Attention – Comprehension – Yielding • ELM & FCB – Retention • Memory stores & properties Consumer Information Processing Stimuli Involvement: • Motivation • Ability • Opportunity Exposure Attention Comprehension Memory: • Sensory • Short Term • Long Term Acceptance Retention Purchase Gaining Exposure • Selective exposure – Consumers deliberately try to avoid our attempts to interact with them • Advertising, Direct mail, Telemarketing • What’s a marketer to do? – Product exposure: • Distribution & Visibility – Nontraditional methods: • Mini Cooper Results for Mini Cooper • In the six months preceding the launch, the website registered 210,000 leads. • 55,000 visitors signed up to receive the e-mail 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. Avoiding Overexposure • Habituation – When a stimulus becomes familiar it loses it’s attention getting power • Ads lose half their effectiveness after accumulating 1,000 GRPs – 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 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 Voluntary Attention • This refers to the conscious allocation of processing capacity to a stimulus. • This ad is likely to attract mothers with small children, reminding them of their special dental needs. Involuntary Attention • Occurs due to a built in “novelty monitoring” mechanism Involuntary Attention • Occurs due to a built in “novelty monitoring” mechanism • However, 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 determines their actions! – Perceptions are a reflection of our attitudes and preferences Comprehension • What is perceived is not necessarily truth – 70% confuse Pepsi and Coke – Over 50% of coffee drinkers couldn’t distinguish best from worst, or regular from instant 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). Yielding/Acceptance Exercise • Take a out a piece of paper • Make a quick list of investment firms that come to mind • Jot down your reactions to the following ads. – Be sure to keep your comments separate so that you can go back to them. Elaboration Likelihood Model • Cognitive responses occur while reading, viewing, or listening to an ad. – Message related thoughts • Supporting arguments and Counterarguments – Source-oriented thoughts • Source Bolstering and Source Derogation – Ad execution thoughts • Reactions or feelings toward the ad Elaboration Likelihood Model • The frequency and nature of responses determine whether attitude change has occurred Persuasive Communication Motivated to Process? • Involvement • Relevance, etc. Yes Temporary attitude shift Yes No No Ability to Process? •Issue familiarity •Arousal, etc. Yes Peripheral cue present? •Source characteristics •Visual imagery •Executional elements No Nature of Cognitive Processing Mostly Mostly Mostly Favorable Unfavorable Neutral Thoughts Thoughts Thoughts Cognitive Structure Change •New cognitions adopted •Different responses Yes Persuasion: enduring positive attitude change Yes Boomerang: enduring negative attitude change Retain Initial attitude No Elaboration Likelihood Model The FCB Planning Grid Thinking Feeling 1. Informative (Cognitive) High Investments, House, Involvement 2. Affective (Emotional) Jewelry, Cosmetics, Apparel, Sports Car Implications Media: Large space, Image specials Execution: Impact 3. Habit Formation (Habit) Low Package Goods, Cleaners Involvement 4. Self-Satisfaction (Impulse) Cigarettes, Candy, Magazines Implications Media: Billboards, Newspaper, Point-of-sale Execution: Attention getting Appliances Implications Media: Long copy, reflective vehicles Execution: Information, Demonstration Implications Media: Small spaces, 10 sec radio, Point-of-sale Execution: Reminder Foote Cone & Belding Grid I II III IV Quadrant I: Informational approach emphasizing performance Quadrant II: Emotional appeals linked to self-image Quadrant III: Repetitive appeals (maintain awareness and encourage repeat purchase) Quadrant IV: Apply classical conditioning (develop continuity between a symbol and the product) 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 Retention Encoding (Rehearsal) Retrieval (Cues) Long Term Memory Facilitating Encoding • Elaboration – Closure • Repetition & Rehearsal – Jingles • Generating Affect – Humor (tricky) 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 2 hrs 3 days 7 days 120 days % correct 98% 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 Assignment • Finish Reading – Chapters 8 – 10, 11 (pp 278 - 298, 303 - 304, 333 - 345, 369 - 376, 401 - 411)