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Psychology of Marketing & Advertising (Subject) / Chapter 1: The Effects of Advertising - Psychological perspective (Lesson)
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- Persuasion appeals Alpha strategies Approach motivation Move towards advocated position Through arguments, incentives, scarcity Omega strategies Avoidance motivation Reduce resistance towards advocated position Through counterarguments, distractions, negative emotions
- The psychological perspective Effects of advertising at the individual level Relationships between ad stimuli and consumer responses Unterstanding the psychological processes behind these relationships Other approaches Naive, economic, media, creative
- Consumer responses 1. Cognitive responses beliefs and thoughts about brands or products e.g. brand awareness, recognition, attitude, preferences 2. Affective responses transient emotions and moods e.g. fear, pride, sadness, anger 3. Behavioral responses (SR-Modell) Intention and actual behaviour e.g. purchase, choice, product trial, brand switching
- Correlational relationships A change in one variable is associatd with a change in the other effect: positive, negative, zero Use: to make predictions (once the values of one variable are known Problem: a correlation is not the cause
- Causal relationships Changes in A must be associated with changes in B (correlation) A must precede B (temporal sequence of events) The change in B should only be attributed to changes in A – no other explanations should be plausible (third variable problem)
- Experiments Establishing causality Manipulate Independent variable A Assess impact on Dependent variable DV B Random assignment - no systematic differences before the IV was manipulated & any effects on the DV can be attributed to the IV
- Mediation analysis Digging deeper into the reasons Identify the intermediary psychological process responsible for an effect Controlling for the mediator significantly reduces the effects of the IV on the DV variable that explains IV → MV → DV
- Moderation effect of IV1 on DV depends on IV2 (moderator) Interaction between IV1 and IV2 on DV Moderator can be individual differences or contextual variables Avertising effects ...are a combination of situational and person variables ...are not invariant across consumers and situations Moderator on x-axis
- Source and message variables Source credibility Source attractiveness Argument quality message structure message sidedness Argument-based and affect-based appeals
- Approaches of conceptualizing advertising effectiveness 1. Modelling approach Aggregate level Entire markets or market segments 2. Behavioral approach Individual consumer responses High level of specificy Effects or specific ad characteristics on specific customer responses Experimental research methods
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- Modelling approach l Sales-response models Sales-response models Long history of research in management and business administration Relate ad inputs (such as money spent) to aggregated outputs (such as sales) Concave sales response model Law of diminishing returns Impact of advertising on sales diminishes with increasing budget S-Shapes sales response model Initial impact of advertising on sales is low Then sales increase with increading expenditures tp to a saturation point
- Criticism of the modeling approach Confounding effects hard to isolate net effect of advertising (from other factors) role of other factors (other elements of the promotional mix, exonomic or sociocultural factors) Nothing about underlying processes Behavioral approach needed to complement the modelling approach
- Hierarchy-of-effects models l consumer responses Consumer responses happen in 3 learning steps Cognitive Stage l A conscious attention and thinking about ad content Affective Stage l Emotional responses, formation of attitudes and preferences Conative Stage l Behaviors that arise from ad exposure Fixed "think-feel-do" sequence
- Examples of hierarchy-of-effects models AIDA-model (Attention, Interest, Desire, Action) FCB grid (advertising agency Foote, Cone, Belding) DAGMAR model (Defining Advertising Foals for Measures Advertising Results)
- Criticism of hierarchy-of-effects models Only concerned with specific messages, rather than interactions with other marketing factors Fail to factor in underlying processes/moderating conditions Inflexible, all ads have the same effects Suggest sequence of events is valid with little empirical support
- Broader research orientations 1960's and 1970's l Focus on grand theories, Exhausted account of why, when and how consumers buy From the 1980's l Focus on specific processes under specific conditions (shift in theories) Consumer behaviour and psychology too complex to restrict to a single model Information processing and attitude change
- Cognitive response approach Focus: different thoughts that people have in response to ads Consumer is no longer a passive recipient of an advertising message -> counterarguments Higher motivation and ability result in higher cognitive responding Result: Can lead to persuasion, active restistance or neutral reaction Limitation: Consumer Involvement with advertising is typically low
- Dual process approaches Cornerstone of present-day social cognition Information processing, judgment and decision making are a continuum 1. Controlled processes Slow Conscious Deliberate Analytical Effortful Mindful → Factor: High Involvement/Ability 2. Automativ processes Fast Non-conscious Impulsive Associative Effortless Mindless → Factor: Low Involvement/Ability
- Unconscious processes Priming research - from the mid 1990's Activating a concept in consumer memory can affect overt behaviour - without the individual being consciously aware of the influence Subliminal oriming - people might not even be aware of the priming stimulus: Unconscious, automatic processes are the rule, not the exception Low-Involvement nature of advertising Allthough popular in psychology, not so much in advertising practice Brand awareness as necessary starting point
- Persuasion Change consumer responsesMainly influence feelings, preferences, attitudes