Information Processing:Part I

MKT 750Professor West

Overview

Models & Managerial Implications

Prior Need/Opportunity PostBeliefs Recognition Search Evaluation Choice

Choice

FishbeinAttitude Models

Satisfaction&

Retention

Awareness&

Availability

Decision Rules

What’s to come?

How knowledge is acquired and used

Information Processing Memory (storage & retrieval)

Managerial ImplicationsBrandsPricing

Consumer Information Processing

Stimuli Exposure

Attention

Comprehension

Acceptance

Retention Purchase

McGuire’s Model for Advertising

Stimuli Exposure p(e) ~p(e)

Attention p(a) ~p(a)

Comprehension p(c) ~p(c)

Acceptance p(y) ~p(y)

Retention p(r) ~p(r)

Probability of purchase = f{p(e)p(a)p(c)p(y)p(r)}

Assume p=.8 at each level:

Stimuli Exposure p(e) ~p(e) 80

Attention p(a) ~p(a) 64

Comprehension p(c) ~p(c) 51

Acceptance p(y) ~p(y) 41

Retention p(r) ~p(r) 33

Probability of purchase < 33%

Gaining Exposure

This occurs when there is physical proximity to a stimulus

Message exposure: Vehicles (media: radio, TV, newspapers, magazines, internet)

Consumers deliberately try to avoid our attempts to interact with them (selective exposure):

Advertising, Direct mail, Telemarketing

Gaining Exposure

What’s a marketer to do?Make your message involving

“Brewing romance” campaign

Product exposure: Distribution & Visibility

Nontraditional vehicles: Elevators, Airports, Buses BMW Z3 Campaign

Case Study: BMW Z3

A nontraditional product launch

Emotional Decision Making

Visibility/Exposure

“Buzz” Word of Mouth Missionary Advocacy Virtuous Cycle of Excitementfor the Brand Word-of-Mouth

Infatuation

Sales/Purchase

Emotional Decision Making

Desired End-State: Purchase

Possible End-State: Brand forgotten

Time

Phase I Phase II

Gen

erat

ing

exci

tem

ent,

buzz

, vis

ibili

ty

Point of“infatuation”

Exci

tem

en

t

Overexposure

HabituationWhen 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

Overexposure

Avoid overexposure throughLimited availability (scarcity)

Harry Potter

Use different ad executions carrying the same message

Absolut Vodka

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 Weber’s Law: JND

The amount of change necessary to be noticed is systematically related to the intensity of the original stimulus

Pre-attentive Processing

Subliminal Messages Vicary’s claimed a 58% sales increase when “Eat Popcorn” and 18% sales increase when “Drink Coke” were embedding in a message for 1/3000 of a second. The message “I am honest. I won’t steal.” is broadcast in more than 1,000 stores in the US to prevent shoplifting.

Pre-attentive Processing

Findings: Increased preference for previously seen information (Schacter 1987) Attitude toward an ad, and brand are more favorable when unconsciously processed than unfamiliar (Shapiro & Krishnan 2001)

Pre-attentive Processing

Findings:When primed with words related to rudeness versus politeness, those primed with rudeness were more likely to interrupt a conversation. When primed with words related to the elderly, subjects walked more slowly from one room to another and recalled fewer details of the room they had been in (Bargh & Chartrand 1999).

Attention

This refers to the conscious allocation of processing capacity to a stimulus.Voluntary Attention–

Occurs when a stimulus is in line with current goals or needs Such attention is selective due to the plethora of messages we are exposed to.

Selective Attention

This ad is likely to attract mothers with small children and it reminds them of their special dental needs.

Attention

Involuntary Attention – Occurs due to built in “novelty monitoring” Evolutionary hypothesis – survival was best insured by attending to unusual events in the environment Size, Color, Contrast, Motion are noticed Appeals to our hedonic side (food & sex) are also noticed

Examples: Novelty

Examples: Color

Examples: Color

Examples: Contrast

Examples - Motion

Examples - Motion

Examples: Size

Examples: Isolation

Examples:

The Surprise FactorVW Commercial

Is Getting Attention Enough?

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 stimulusThe 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

Colas - 70% confuse Pepsi and Coke Beer & Wine - blind taste test results diverge from labeled Coffee - over 50% couldn’t distinguish best from worst, or regular from instant (Consumer Reports)

Comprehension

Perceptions are often the heart of marketing issues/problems.

Olay – P&G faced issues with “Oil of Olay” being perceived as oily and old

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 memoryFigure/Ground – perceptions differ depending upon what the individual sees as figure (dominant) versus ground (background).

Illustrations of Closure

Illustrations of Closure

Summary

Familiarity breeds liking while tedium invites argumentation and criticism

Use attention well (to build your brand)once you have it, or it will be short lived

Advertising is often used to set expectations which influence our experiences

A brand’s message must remain the “figure” and shouldn’t be overshadowed by other elements

Exposure

Attention

Comprehension

Assignment

Read Chapters 9, 14 & 16Be sure to sign up for a team meetingKeep up the work on your project!