2. Information Processing: Part I Dr. West

3. Agenda Information Processing Framework –Exposure –Attention –Comprehension –Yielding ELM & FCB –Retention Memory stores & properties

4. Consumer Information Processing Stimuli Exposure Attention Comprehension Acceptance Retention Purchase Involvement: Motivation Ability Opportunity Involvement: Motivation Ability Opportunity Memory: Sensory Short Term Long Term Memory: Sensory Short Term Long Term

5. 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

6. 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. Results for Mini Cooper

7. 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

8. Avoiding Overexposure Avoid overexposure through –Limited availability (scarcity) Harry Potter –Use different ad executions carrying the same message Absolut Vodka

9. Consumer Information Processing Stimuli Exposure Attention Comprehension Acceptance Retention Purchase Pre-attentive Processing Pre-attentive Processing

10. 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

11. 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.

12. Involuntary Attention Occurs due to a built in “novelty monitoring” mechanism

13. 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

14. 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

15. 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

16. 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).

17. 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.

18. 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

19. Elaboration Likelihood Model The frequency and nature of responses determine whether attitude change has occurred

20. Persuasive Communication Motivated to Process? Involvement Relevance, etc. Ability to Process? Issue familiarity Arousal, etc. Nature of Cognitive Processing Mostly Mostly Mostly FavorableUnfavorable Neutral Thoughts Thoughts Thoughts Cognitive Structure Change New cognitions adopted Different responses Persuasion: enduring positive attitude change Boomerang: enduring negative attitude change Temporary attitude shift Peripheral cue present? Source characteristics Visual imagery Executional elements Retain Initial attitude Yes No Elaboration Likelihood Model

21. The FCB Planning Grid ThinkingFeeling High Involvement 1. Informative (Cognitive) Investments, House, Appliances Implications Media: Long copy, reflective vehicles Execution: Information, Demonstration 2. Affective (Emotional) Jewelry, Cosmetics, Apparel, Sports Car Implications Media: Large space, Image specials Execution: Impact Low Involvement 3. Habit Formation (Habit) Package Goods, Cleaners Implications Media: Small spaces, 10 sec radio, Point-of-sale Execution: Reminder 4. Self-Satisfaction (Impulse) Cigarettes, Candy, Magazines Implications Media: Billboards, Newspaper, Point-of-sale Execution: Attention getting

22. Foote Cone & Belding Grid 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) I I II III IV

23. 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”

24. The Memory Process

25. Relationship of Memory Stores

26. Exposure Attention Retention Signal Strength Sensory Memory Short Term Memory Long Term Memory Incoming Information Pertinence Encoding (Rehearsal) Retrieval (Cues) Encoding & Retrieval

27. Facilitating Encoding Elaboration – Closure Repetition & Rehearsal – Jingles Generating Affect – Humor (tricky)

28. 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%

29. Feelings Ads can evoke feelings or emotions – Hallmark, McDonalds, KodakHallmarkMcDonalds 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

30. Facilitating Retrieval Encoding-specificity – Memory is context dependent, thus memory performance is improved when contextual cues present at encoding are retrieval are the same

31. Assignment Finish Reading –Chapters 8 – 10, 11 (pp 278 - 298, 303 - 304, 333 - 345, 369 - 376, 401 - 411)