Information Processing:Part I

Dr. West

Agenda

• Information Processing Framework– Exposure– Attention– Comprehension– Yielding

• ELM & FCB

– Retention• Memory stores & properties

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

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

• 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

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

Comprehension

Acceptance

Retention Purchase

Pre-attentive Processing

Pre-attentive Processing

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.

Ability to Process?•Issue familiarity•Arousal, etc.

Nature of Cognitive Processing

Mostly Mostly MostlyFavorable Unfavorable Neutral Thoughts Thoughts Thoughts

Cognitive Structure Change•New cognitions adopted•Different responses

Persuasion:enduring positiveattitude change

Boomerang:enduring negativeattitude change

Temporaryattitude shift

Peripheral cue present?•Source characteristics•Visual imagery•Executional elements

RetainInitial attitude

Yes

Yes

Yes Yes

YesNo

No

No

No

Elaboration Likelihood Model

The FCB Planning GridThinking Feeling

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

Foote Cone & Belding Grid

Quadrant I: Informational approach emphasizing performanceQuadrant II: Emotional appeals linked to self-imageQuadrant III: Repetitive appeals (maintain awareness and encourage repeat purchase)Quadrant IV: Apply classical conditioning (develop continuity between a symbol and the product)

II IIII

IIIIII IVIV

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

Exposure

Attention

Retention

SignalStrength

Sensory Memory

Short Term Memory

Long Term Memory

Incoming Information

Pertinence

Encoding (Rehearsal)

Retrieval(Cues)

Encoding & Retrieval

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)