Consumer Response to False Information: Is Believability Necessary for Persuasion?

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Consumer Response to False Information: Is Believability Necessary for Persuasion? Claudiu V. Dimofte Georgetown University Richard F. Yalch University of Washington May 7, 2005 Vancouver, BC

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Consumer Response to False Information: Is Believability Necessary for Persuasion?. Claudiu V. Dimofte Georgetown University Richard F. Yalch University of Washington May 7, 2005 Vancouver, BC. Outline. Crisis Management Damage Control (Study 5) False Marketplace Information - PowerPoint PPT Presentation

Transcript of Consumer Response to False Information: Is Believability Necessary for Persuasion?

Page 1: Consumer Response to False Information: Is Believability Necessary for Persuasion?

Consumer Response to False

Information:

Is Believability Necessary for

Persuasion?•Claudiu V. Dimofte•Georgetown University

•Richard F. Yalch•University of Washington

•May 7, 2005•Vancouver, BC

Page 2: Consumer Response to False Information: Is Believability Necessary for Persuasion?

Outline

• Crisis Management• Damage Control (Study 5)

• False Marketplace Information• Negative Rumors about Company/Brand

• Overselling of Product/Brand Features

• The Implicit Account

• Rumors• Information Processing (Studies 1, 2, 3)

• Infomercials• Curious Disbelief (sic) (Study 4)

• Discussion/Conclusions

Page 3: Consumer Response to False Information: Is Believability Necessary for Persuasion?

PRODUCTINFORMATION

TRUE FALSE

++ - -

ADS/WOMDECEPTIVE

SALESRUMORSCRISES

Page 4: Consumer Response to False Information: Is Believability Necessary for Persuasion?

PRODUCTINFORMATION

TRUE FALSE

++ - -

ADS/WOMDECEPTIVE

SALESRUMORSCRISES

Page 5: Consumer Response to False Information: Is Believability Necessary for Persuasion?

Coping with Crises

• Examples• Celebrities

•Bill O’Reilly – sexual harassment •Michael Jackson – being weird•Pat O’Brien – alcoholic leaving obscene

messages•Martha Stewart – prison time for lying•Janet Jackson – Superbowl•Paul Abdul – misbehavior with contestant

Page 6: Consumer Response to False Information: Is Believability Necessary for Persuasion?

Damage Control

1. Do Nothing – Bill O’Reilly

2. Refutation – Michael Jackson

3. Apologize and Go On – Pat O’Brien

4. Retrieval – Martha Stewart “Apprentice spinoff”

5. Storage – Janet Jackson “Equipment malfunction”

6. Counterattack – Paula Abdul

Page 7: Consumer Response to False Information: Is Believability Necessary for Persuasion?

Study 5: Damage Control

• Goals:

• Look at all damage control strategies in one experiment

• Participants:

• 133 undergrads from introductory GT Marketing class

• Method:

• Participants are exposed to news coverage on Bank of

America losing customer data

• Participants take IAT and provide explicit truth ratings

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Study 5 - Stimuli

• Explicit Procedure Stimuli:

• Participants read web news story on Bank of America’s losing data

• After short delay, they are given 6-item questionnaire about problem gravity, responsibility, BA evaluation, BA data safety, importance of apology, safety of BA vs. WF

• Conditions: apology, do nothing, deny, counterattack, storage, retrieval

• Implicit Procedure Stimuli:

• IAT Bank of America/Wells Fargo, safe/unsafe

Page 9: Consumer Response to False Information: Is Believability Necessary for Persuasion?

CRISIS

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APOLOGY

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REFUTE

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STORAGE

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ATTACKRETRIEVAL

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ATTACK

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Study 5 - Gravity

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2.5

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Do Nothing Apologize Refute Storage Retrieval Counterattack

"Not Serious at All"

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Study 5 – BofA’s Responsibility

1

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2

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Do Nothing Apologize Refute Storage Retrieval Counterattack

"Not their fault"

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Study 5 – Data Safe & vs Wells Fargo?

1

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Do Nothing Apologize Refute Storage Retrieval Counterattack

"Exremely Safe"

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Study 5 – Overall Evaluation of BofA

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3

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4

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Do Nothing Apologize Refute Storage Retrieval Counterattack

"Extremely Favorable"

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Study 5 – Implicit Associations

-0.08

-0.06

-0.04

-0.02

0

0.02

0.04

Do Nothing Apologize Refute Storage Retrieval Counterattack

BofA- Safe

BofA- Unsafe

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Study 5 – Conclusions

• Explicit Results:

• Apologize: Admitting fault was generally worst strategy.

• Ignore: left doubt and did not help. Second worst strategy.

• Refute: slight help with most issues.

• Storage: lowered perceived severity & BofA concerns. Best strategy.

• Retrieval: only lowered severity but aided overall evaluation.

• Counterattack: Minimized severity but kept low safety ratings. Similar but

not as good as retrieval for overall evaluations.

Page 21: Consumer Response to False Information: Is Believability Necessary for Persuasion?

Study 5 – Conclusions

• Implicit Results:

– Bank of America is strongly automatically associated with ‘unsafe’

in all cases except:

apology (only time better thanWells Fargo)

storage (equal to Wells Fargo)

• Overall Insights:

– Storage works at both levels, by turning – into +

– Apology

– – for explicits but + for implicits

– Explicit judgments, think about why they apologized

– Implicit judgments, think about BofA not the apology or safety

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PRODUCTINFORMATION

TRUE FALSE

++ - -

ADS/WOMDECEPTIVE

SALESRUMORSCRISES

Page 23: Consumer Response to False Information: Is Believability Necessary for Persuasion?

False Negative Information• Rumors about Company/Brand

• Rumors: specific propositions or beliefs passed along from person to person without any secure standards of evidence (Allport and Postman 1947)

• Originate in unconscious desires that are transformed to become conscious (Rossignol 1973)

• “[…] the rumor could exist at various levels of consciousness and could lead one to get a pizza or a taco without being aware of why one did so” (Koenig 1985)

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Unfounded Rumor Examples

• Corona• Mountain Dew• Procter & Gamble

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Failing to Combat Rumors can have Severe Consequences

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Rumor Quelling Strategies

• Tybout et al. (1981): refutation does not work, use storage

or retrieval strategies

• Iyer and Debevec (1991): rumors are less credible when

propagated by someone that can gain out of its

dissemination

• Koller (1992): the best way to fight rumors is to explain their

rumor and lack of veracity via positive advertising

• Kamins et al. (1997): rumors are generally more easily

spread when they are personally relevant and favorable

• Bordia et. al (2000): best way to fight rumors is via honest

denial

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Information Processing Insights

• Tybout et al. (1981)• Directly refuting rumors is the least effective way to

deal with them; offered two alternative strategies:

1. STORAGE STRATEGY: expose consumers to a secondary stimulus during encoding of rumor information, making the brand more likely to be associated with that stimulus rather than the rumor

2. RETRIEVAL STRATEGY: expose consumers to a secondary stimulus during retrieval of brand information, thus lessening the chance of the joint retrieval of brand and rumor

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Information Processing Insights (cont’d)

• Tybout et al. (1981) design: employed rumor of McDonald’s’ use of red worm meat in their burgers

1. STORAGE STRATEGY: during encoding of worm rumor information, consumers were exposed to a secondary stimulus (confederate claiming a famous, pricey local French restaurant uses tasty worm sauces)

GOAL: make worm meat more desirable or more associated with French restaurants than McDonalds.

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2. RETRIEVAL STRATEGY: during retrieval of McDonald’s information, consumers were exposed to a secondary stimulus (questionnaire about the McDonald’s location they frequent the most) GOAL: lessen likelihood of joint retrieval of McDonald’s and worm meat rumor

3. REFUTATION STRATEGY: after exposure to worm rumor, consumers were exposed to McDonald’s’ claim that red worm meat is too expensive to use.GOAL: alter believability of the worm rumor

Information Processing Insights (cont’d)

Page 30: Consumer Response to False Information: Is Believability Necessary for Persuasion?

Tybout (1981) results

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No Rumor Rumor Refutation Storage Retrieval

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• Problem: no clear understanding of what the processing mechanisms behind these effects are

• STORAGE: did it disrupt the McDonald’s – worms association or did it make eating worms more positive by relating it to French food?

• RETRIEVAL: did it block the activation of the McDonald’s – worm association or inhibited its retrieval in relation to other McDonald’s thoughts?

• REFUTATION: after study, subjects in all conditions showed strong disbelief in the rumor’s veracity so why were they still affected by it?

Information Processing Insights (cont’d)

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"Are you aware of the unconscious hostility

you are exhibiting to us right now?“

Doctor X, Psychiatrist

”How could I be aware if it's unconscious?”

Leonard, Mental Hospital patient

in the movie The Awakening

Explicit vs. Implicit Processing

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Explicit vs. Implicit Processing

• Explicit (implicit) processing: those aspects of cognition which are (un)available to the individual's conscious awareness.

• The methods used to test for each differ:

• explicit processing is typically examined directly, by asking individuals to evaluate their own thought processes;

• implicit processing is typically examined indirectly by evaluating performance on tests that depend on thought processes that are not subject to introspection.

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Explicit vs. Implicit Processing

• Fazio et al. (1986): attitudes characterized by a strong association between the attitude object (AO) and its evaluation are capable of being activated from memory automatically upon mere presentation of AO.

• Devine (1989): dissociation of automatic and controlled processes involved in prejudice

• social stereotype is automatically activated in the presence of a member of stereotyped group and that low-prejudice responses require controlled inhibition thereof

Page 35: Consumer Response to False Information: Is Believability Necessary for Persuasion?

Explicit vs. Implicit Processing

• Bargh et al. (1996): stereotypes become active automatically in the presence of relevant behavior or stereotyped-group features

• participants for whom an elderly stereotype was primed walked more slowly down the hallway when leaving experiment

• Greenwald et al. (1998): measured individual differences in implicit cognition with implicit association test (IAT)

• Bottom line: automatic cognition occurs and is driven by associations that we generally cannot control.

Page 36: Consumer Response to False Information: Is Believability Necessary for Persuasion?

Rumor Processing: The Implicit Account

• False information persuades via an unconscious route by building automatic associations between brands and the information cues in the message.

• While explicitly rejecting the veracity of outlandish brand rumors, consumers lack control over the implicit associations occurring at exposure and being practiced during subsequent evaluations.

Page 37: Consumer Response to False Information: Is Believability Necessary for Persuasion?

Study 1 - Storage

• Goal:• Replicate Tybout et al. (1981) storage strategy

results

• Disentangle processing mechanisms behind strategy

• Participants:• 229 undergrads from introductory Marketing class

• Method:• Participants are exposed to rumor and secondary

stimulus

• Filler task for 5 minutes

• Participants take IAT, then provide explicit brand ratings

Page 38: Consumer Response to False Information: Is Believability Necessary for Persuasion?

Study 1 - Stimuli

• Explicit Procedure Stimuli:

• Participants read series of supposed New York Times news stories on politics, business (McDonald’s worm rumor troubles in Asia), sports, and leisure.

• Half read about gourmet worm food from AsiaHalf read about house decorating.

• Implicit Measures:

• IAT McDonald’s/Burger-King, food-related/worm-

related

• IAT food-related/worm-related, pleasant/unpleasant

Page 39: Consumer Response to False Information: Is Believability Necessary for Persuasion?

Study 1 – Stimuli (cont’d)

press “d” for press “k” for

Worm-related Food-related OR OR

McDonald’s Burger King

Page 40: Consumer Response to False Information: Is Believability Necessary for Persuasion?

Study 1 – Stimuli (cont’d)

press “d” for press “k” for

Worm-related Food-related OR OR

McDonald’s Burger King

larva

Page 41: Consumer Response to False Information: Is Believability Necessary for Persuasion?

Study 1 – Stimuli (cont’d)

press “d” for press “k” for

Worm-related Food-related OR OR

McDonald’s Burger King

beef

Page 42: Consumer Response to False Information: Is Believability Necessary for Persuasion?

Study 1 – Stimuli (cont’d)

press “d” for press “k” for

Worm-related Food-related OR OR

McDonald’s Burger King

Page 43: Consumer Response to False Information: Is Believability Necessary for Persuasion?

Study 1 – Stimuli (cont’d)

press “d” for press “k” for

Worm-related Food-related OR OR

Pleasant Unpleasant

beef

Page 44: Consumer Response to False Information: Is Believability Necessary for Persuasion?

Study 1 – Stimuli (cont’d)

press “d” for press “k” for

Worm-related Food-related OR OR

Pleasant Unpleasant

rainbow

Page 45: Consumer Response to False Information: Is Believability Necessary for Persuasion?

Study 1 – Stimuli (cont’d)

press “d” for press “k” for

Worm-related Food-related OR OR

Pleasant Unpleasant

hurricane

Page 46: Consumer Response to False Information: Is Believability Necessary for Persuasion?

Study 1 – Explicit Results

• Tybout et al. (1981) results replicate: consumers in the storage

condition have higher evaluations of McDonald’s than those in the

rumor-only condition: t(228) = -2.20, p < .03

0

20

40

60

80

Control Storage

Brand Rating

Page 47: Consumer Response to False Information: Is Believability Necessary for Persuasion?

Study 1 – IAT Results

• McDonald’s is equally (and weakly) associated with worms in both conditions:

t(117) < 1, ns

• Worms are associated with unpleasant in both conditions, but less so in storage:

t(110) = 2.34, p < .03

0

0.1

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McDonald's-Worms IAT Worms-Affect IAT

D-m

easu

re

Control Storage

McDonald’s -Worms

McDonald’s -Food

Worms - Unpleasant

Worms - Pleasant

Page 48: Consumer Response to False Information: Is Believability Necessary for Persuasion?

Study 1 – Conclusion & Unresolved Issue

• Conclusion: the storage strategy works by minimizing the negative feelings associated with the rumor via the positive secondary stimulus

• Problem: the McDonald’s – Worms IAT showed little association, even in the control condition

• Stronger rumor induction may be needed (vivid images or repetition).

Page 49: Consumer Response to False Information: Is Believability Necessary for Persuasion?

Study 2 – Retrieval vs Refutation

• Goal: compare two strategies in terms of implementation delay following rumor exposure.

• Method:

• 113 participants exposed to rumor

• Followed by secondary stimulus

• Retrieval – questions unrelated to rumor

• Refutation – statement why the rumor is false

• Filler task for 5 or 30 minutes

• Participants take IAT, then provide explicit brand ratings

Page 50: Consumer Response to False Information: Is Believability Necessary for Persuasion?

Study 2 - Stimuli

• Explicit Procedure Stimuli:

• Participants read series of supposed New York Times news stories on politics, business (McDonald’s worm rumor troubles in Asia), sports, and leisure.

• After short/long delay, they are given 4-item questionnaire about the McDonald’s/Circuit City they frequent, or read McDonald’s press release refuting rumor.

• Implicit Measures:

• IAT McDonald’s/Burger-King, food-related/worm-related

Page 51: Consumer Response to False Information: Is Believability Necessary for Persuasion?

Study 2 – Explicit Results

• Tybout et al. (1981) results do not replicate:

– interaction Condition x Delay: F(2, 96) = 3.14, p < .05

• Retrieval strategy does not work, fast refutation does

40

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Control Retrieval Refutation

Brand Rating

Short Delay Long Delay

*

*

* p < .05

Page 52: Consumer Response to False Information: Is Believability Necessary for Persuasion?

Study 2 – IAT Results

• Main effect of Delay: F(2, 104) = 3.34, p = .07• Retrieval does work implicitly if positive thoughts elicited fast enough• Rumors are difficult to fight after delay

-0.12

-0.09

-0.06

-0.03

0

0.03

Control Retrieval Refutation

D-m

easu

re

Short Delay Long Delay

McDonald’s - Worms

McDonald’s - Food

*

** p < .05

Page 53: Consumer Response to False Information: Is Believability Necessary for Persuasion?

Study 3

• Automatic associations quickly established with initial exposures and explicit and implicit – but is this limited to novel stimuli?

• If so, we are truly not as susceptible to undue influence

• If not, can anything be done to prevent undue associations from emerging?

• Test: employ strong pre-existing association, try to change it[s strength] via rumor

Page 54: Consumer Response to False Information: Is Believability Necessary for Persuasion?

Study 3• Goals:

• Look at strong, universally prevalent association:

• Females and caring

• Participants:

• 133 undergrads from introductory GT Marketing class

• Method:

• Participants are exposed to male pregnancy rumor

or message on home decoration

• Participants take IAT and provide explicit truth

ratings

Page 55: Consumer Response to False Information: Is Believability Necessary for Persuasion?

Study 3 - Stimuli

• Explicit Procedure Stimuli:

• Participants read supposed CNN story on Asian hospital and its male pregnancy program (house decoration in control)

• After short delay, they are given 4-item questionnaire about the likelihood of this story’s being true, etc.

• All asked about possibility of male pregnancy

• Implicit Procedure Stimuli:

• IAT female/male names, caring/uncaring

Page 56: Consumer Response to False Information: Is Believability Necessary for Persuasion?

Study 1 – Stimuli (cont’d)

press “d” for press “k” for

Male Female OR OR

caring uncaring

John

Page 57: Consumer Response to False Information: Is Believability Necessary for Persuasion?

Study 1 – Stimuli (cont’d)

press “d” for press “k” for

Male Female OR OR

caring uncaring

nurturing

Page 58: Consumer Response to False Information: Is Believability Necessary for Persuasion?

Study 3 - Results

• Explicit Results:

• Rumor elicits more curiosity: t(132) = 130.34, p

< .001

• Rumor is not credible: t(132) = 125.13, p < .001

• Male pregnancy is possible: t(132) = 131.20, p

< .001

• Implicit Results:

• Both conditions associate female names more with

‘caring’

• Slightly less so in rumor condition, ns

Page 59: Consumer Response to False Information: Is Believability Necessary for Persuasion?

Studies 1 – 3 Conclusions

• Rumors are difficult to manage because explicit beliefs are often not a consideration

• Worm rumor not believed but McDonalds attitudes

• Male pregnancy believed but males no more caring

• Believability does not appear to be a major consideration in using information to make judgments.

Page 60: Consumer Response to False Information: Is Believability Necessary for Persuasion?

Studies 1 – 3 Explanations

• Cartesian view on comprehension and acceptance of assertions: messages are at once comprehended and rejected if assessed to be unbelievable

• Spinozan view: all information is first accepted during comprehension, and only subsequently rejected upon believability assessment (Gilbert et al. 1990).

• Support for the latter: all information is automatically awarded bona fide status upon encounter, unless strong prior associations of different valence exist.

Page 61: Consumer Response to False Information: Is Believability Necessary for Persuasion?

False Positive Information

• Overselling of Product/Brand Features• “Too-good-to-be-true” commercial/infomercial claims

• Pragmatic Implications

• Consumers drawing unwarranted inferences (Kardes

1988)

due to processing or production deficits (Gaeth and

Heath 1987)

• Richards (1990) lists 14 types of deceptive advertising

(preemptive – Wonder Bread builds Strong Bodies 12

ways)

Page 62: Consumer Response to False Information: Is Believability Necessary for Persuasion?

False Positive Information

• The “Curious Disbelief” Phenomenon

•“Hard to Believe” Advertising Claims may motivate trial more than believable claims

Maloney (1962)

0%

5%

10%15%

20%

25%30%

35%

40%

45%

Willingness to Try Product

Believers

CuriousNonbelieversDisbelievers

Page 63: Consumer Response to False Information: Is Believability Necessary for Persuasion?

Infomercial Persuasion: The Implicit Account

• False information persuades via an unconscious route by building automatic associations between brands and the novel information cues in the message.

• While explicitly rejecting the veracity of outlandish infomercial claims, consumers lack control over the implicit associations occurring at exposure and being practiced during subsequent evaluations.

Page 64: Consumer Response to False Information: Is Believability Necessary for Persuasion?

Study 4: Power of Infomercials

• Goals:

• Replicate Maloney (1962) explicit results

• Disentangle processing mechanisms behind curious disbelief

• Method:

• 62 participants are exposed to Ultimate Chopper infomercial: alone, preceded or followed by discounting cue (video or text)

• Explicit dependent measures collected

• Participants take two IATs: interesting/believable

Page 65: Consumer Response to False Information: Is Believability Necessary for Persuasion?

Study 4 - Stimuli

• Explicit Procedure Stimuli:

• Participants watch about 90 seconds-worth of edited Ultimate Chopper infomercial or read equivalent text

• Discounting cue: about 90 seconds-worth of edited 20/20 footage on infomercial scams

• Implicit Procedure Stimuli:

• IAT Ultimate Chopper/Henckels knives, boring/interesting

• IAT Ultimate Chopper/Henckels, believable/unbelievable

Page 66: Consumer Response to False Information: Is Believability Necessary for Persuasion?

Infomercial

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Infomercial - Expose

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Study 4 – Explicit Results

• There is something special about (video) infomercials: Explicit Rating

• main effect: F(3, 61) = 2.40, p = .09; a,b: p < .03

0

2

4

6

8

10

Infomercial Cue+Infomercial Infomercial+Cue Text

Rating

ba

a,b

Page 69: Consumer Response to False Information: Is Believability Necessary for Persuasion?

Study 4 – Explicit Results

• Infomercials are generally not credible: all conditions show

disbelief: text info best (slightly above .5 – range: -3 to 3)

F(3, 61) = 2.3, p = .08; a,b: p < .05• Check via suspicion

-1

-0.5

0

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1

1.5

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Infomercial Cue+Infomercial Infomercial+Cue Text

Believability

a b

a,b

Page 70: Consumer Response to False Information: Is Believability Necessary for Persuasion?

Study 4 – Explicit Results

• Supports believability results and shows that cue instills suspicion:

F(3, 64) = 4.6, p < .006; a,b: p < .05; c,d: p < .005• Again, we have explicit disbelief

0

0.5

1

1.5

2

2.5

Infomercial Cue+Infomercial Infomercial+Cue Text

Suspicion

a,cb,d

a,b

c,d

Page 71: Consumer Response to False Information: Is Believability Necessary for Persuasion?

• Not a lot of explicit curiosity elicited: irrelevant category?

F(3, 61) = .2, ns

0

0.25

0.5

0.75

1

Infomercial Cue+Infomercial Infomercial+Cue Text

Curiosity

Study 4 – Explicit Results

Page 72: Consumer Response to False Information: Is Believability Necessary for Persuasion?

• Similar shape/results for several claims (e.g., crushes ice, will never dull)• Peanut Butter main effect: F(3, 63) = 5.1, p < .003

a,c: p < .03; b,d: p < .003 • Nonbelief drives evaluations

0

0.2

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0.8

1

Infomercial Cue+Infomercial Infomercial+Cue Text

Makes Peanut Butter

a,b

a,cb,d

c,d

Study 4 – Explicit Results

Page 73: Consumer Response to False Information: Is Believability Necessary for Persuasion?

-0.5

-0.25

0

0.25

0.5

Chopper-Interesting IAT Chopper-Believable IAT

D-m

easu

re

Infomercial Cue+Infomercial Infomercial+Cue Text

Chopper-Interesting

Chopper-Boring

Chopper-Believable

Chopper-Unbelievable

Study 4 – IAT Results

Page 74: Consumer Response to False Information: Is Believability Necessary for Persuasion?

• Interesting IAT: F(3, 58) = 3.3, p < .03 (we have some implicit curiosity for all infomercial conditions, text quite boring: an issue of delivery?)

• Believable IAT: F(3, 58) = 1.9, p = .14 (no implicit disbelief, infomercial seems to build instant automatic believability: an issue of testimonials?)

• It appears the “curious nonbelief” phenomenon translates into “curious implicit belief”

Study 4 – IAT Results

Page 75: Consumer Response to False Information: Is Believability Necessary for Persuasion?

Support for The Implicit Account

• False information may persuade via an automatic route by building automatic associations between brands and the novel information cues in the message.

• While explicitly rejecting the veracity of outlandish infomercial claims or brand rumors, consumers lack control over the implicit associations occurring at exposure and being practiced during subsequent evaluations.

• Is believability really important? The response is automatic…