1. Memory and Retrieval Chapter Eight

2. Copyright © Houghton Mifflin Company. All rights reserved.8 | 2 Key Concepts Memories –Sensory –Short-term –Long-term Using memory for effective strategy How retrieval works and affecting it

3. Copyright © Houghton Mifflin Company. All rights reserved.8 | 3 What Is Memory? Consumer memory/retrieval Knowledge, attitudes, and memory Memory, retrieval, and decision making

4. Copyright © Houghton Mifflin Company. All rights reserved.8 | 4 Key Implication Marketers need to build strong associations and knowledge structures in consumers’ memory so that the brand is activated when a related concept is activated

5. Copyright © Houghton Mifflin Company. All rights reserved.8 | 5 Chapter Overview: Memory and Retrieval (Exhibit 8.2)

6. Copyright © Houghton Mifflin Company. All rights reserved.8 | 6 Sensory Memory Echoic- Hear Iconic- See Characteristics

7. Copyright © Houghton Mifflin Company. All rights reserved.8 | 7 Short-Term Memory Imagery processing Discursive processing Characteristics –Limited –Short-lived

8. Copyright © Houghton Mifflin Company. All rights reserved.8 | 8 Functions of On-Premises Signage Develop brand equity- emphasize words/ graphics/symbols of business Aid in recall/reinforcement of other media efforts Prompt purchase- impulse Change purchase decision/choice when customer on premises Notify motorists of location in relation to where headed and assist entry Complement community “aesthetic” standards Source: U.S. Small Business Administration: “Signs: Showcasing Your Business on the Street”, www.sba.gov/library/pubs/mt-12.doc www.sba.gov/library/pubs/mt-12.doc

9. Copyright © Houghton Mifflin Company. All rights reserved.8 | 9 Cost/100 Exposures of On-Premises Sign This example applies $33,000 as the cost of the sign: Assumptions: Initial cost of design,$33,000 Production and installation: (for two faces) Amortization period: 7 years Cost of sign/month: $393.00 Estimated traffic count (cars/day): 60,000 Formula: Cost/1000 vehicle exposures Monthly Cost Monthly Exposures Calculation:393.00 1.8 million Cost/1000 Exposures =$0.22 Source: U.S. Small Business Administration: “Signs: Showcasing Your Business on the Street”, www.sba.gov/library/pubs/mt-12.doc www.sba.gov/library/pubs/mt-12.doc

10. Copyright © Houghton Mifflin Company. All rights reserved.8 | 10 Cost Effectiveness of On-Premises Sign Versus Other Media Impressions (in Millions): On-premises: 2 Outdoor: 20 Radio: 6 TV: 3 Newspaper: 10 Cost per Thousand Impressions: On-Premises: $ 0.22 Outdoor: $ 1.90 Radio: $ 5.90 TV: $10.00 Newspaper: $ 3.60 Source: U.S. Small Business Administration: “Signs: Showcasing Your Business on the Street”, www.sba.gov/library/pubs/mt-12.doc www.sba.gov/library/pubs/mt-12.doc

11. Copyright © Houghton Mifflin Company. All rights reserved.8 | 11 Survey on How First Became Aware of Restaurant Source: U.S. Small Business Administration: “Signs: Showcasing Your Business on the Street”, www.sba.gov/library/pubs/mt-12.doc www.sba.gov/library/pubs/mt-12.doc

12. Copyright © Houghton Mifflin Company. All rights reserved.8 | 12 Imagery Can: Create liking for product Stimulate memories of experiences Affect: - Evaluation - Satisfaction

13. Copyright © Houghton Mifflin Company. All rights reserved.8 | 13 Long-Term Memory Autobiographical (episodic) - Affects decision making - Promotes empathy/identification - Cueing/preserving - Reinterpreting Semantic

14. Copyright © Houghton Mifflin Company. All rights reserved.8 | 14 Enhancing Memory Chunking Rehearsal Recirculation Elaboration

15. Copyright © Houghton Mifflin Company. All rights reserved.8 | 15 Organization of Long-Term Memory Semantic/associative networks - Trace strength - Spreading of activation Retrieval failures - Decay - Interference Retrieval errors

16. Copyright © Houghton Mifflin Company. All rights reserved.8 | 16 Semantic (Associative) Network (Exhibit 8.7)

17. Copyright © Houghton Mifflin Company. All rights reserved.8 | 17 Types of Retrieval Explicit Memory –Recognition –Recall Implicit Memory

18. Copyright © Houghton Mifflin Company. All rights reserved.8 | 18 Retrieval for Marketers Communication objective Affects consumer choices Relates to advertising effectiveness Consumer segments

19. Copyright © Houghton Mifflin Company. All rights reserved.8 | 19 Recall Results for Commercial (Exhibit 8.8)

20. Copyright © Houghton Mifflin Company. All rights reserved.8 | 20 Enhancing Retrieval Stimulus Processing Consumer characteristics - Mood - Expertise

21. Copyright © Houghton Mifflin Company. All rights reserved.8 | 21 Characteristics of Stimulus Salience Prototypicality Redundant cues Medium Processing in short- term memory

22. Copyright © Houghton Mifflin Company. All rights reserved.8 | 22 Linking the Stimulus-Retrieval Cues Brand Name Logos Package Category Names Typefaces