Psychology of Marketing & Advertising (Fach) / 1. Introduction to basic concepts (Lektion)

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• The goal of the function "inform" is to create non-evaluative response Richtig
• Advertising is any form of paid communication by an identified sponsor aimed to inform and/or persuade target audiences about an organization, product, service, or idea. Richtig
• Since the Industrial Revolution people saw a huge increase in advertisement Ja
• Signs are as old as ancient Egypt, Greece, and Rome Ja
• The USP describes what one brand offers that competitors don’t Ja
• the Internet will probably compliment existing media rather than replace it Ja
• Informational or argument-based appeals is the hard-sell, reason-why approach Ja
• Emotional or affect-based appeals is the soft-sell, more subtle approach JA
• the goal with Persuading consumers is to generate or change evaluative response and create a more favorable view JA
• The goal with informing consumers is to create non-evaluative response, beliefs and knowledge JA
• Information appeals deal with what? availability attributes price performance quality special offers 
• There are different information appeals on each stage of the product life cycle JA
• The Typical Marketing Objective of the Introduction Stage is to create brand awareness and brand knowledge Ja
• What are the typical marketing objectives of each stage of the PLC? 1. Introduction  brand awareness brand knowledge 2. Growth brand attitude brand preference 3. Maturity top-of-mind awareness loyality 4. Decline new users new target group 
• Limitations of information appeals are the fact that informing consumers might sometimes be ineffective or even backfire Ja
• Information appeals have to educate consumers in complex new products or have to deal with problems, corrections and recalls Ja
• In the McDonald’s case the scandal affected Memory and associations as shown by a customer survey Ja
• The goal of Persuasion is to change consumer responses and to mainly influence feelings, preferences, attitudes Ja
• Alpha strategies as Approach motivation aim to move towards advocated position through hrough arguments, incentives, scarcity Ja
• Omega strategies being the Avoidance motivation aim to reduce resistance towards advocated position through counterarguments, distractions, negative emotions... Ja
• What consumer responses can appear? 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
• What is the job of alpha strategies? – Approach motivation – Move towards advocated position – Through arguments, incentives, scarcity... 
• What do Omega strategies do? –  Avoidance motivation –  Reduce resistance towards advocated position –  Through counterarguments, distractions, negative emotions... 
• Effects of advertising at the individual level examine the relationships between ad stimuli and consumer responses Ja
• The effects of advertising at the individual level aims to understand the psychological processes behind the ad-stimuli/consumer response- relationships Ja
• Correlational relationship A change in one variable is associated with a change in the other
• Correlational relationships are used to make predictions (once the values of one variable are known) Ja
• What are the three conditions for 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)
• Correlation is a necessary and sufficient condition for causality False
• Experiments aim to Establish causality Ja
• How to conduct an Experiment Manipulate A as Independent variable (IV) Assess impact on B as  Dependent variable (DV) – Random assignmentNo systematic differences before the IV was manipulated Any effects on the DV can be attributed to the IV 
• Mediation analysis aims to Identify the intermediary psychological process responsible for an effect Ja
• The logic of a mediation analysis is that controlling for the mediator improves the effect of the IV on the DV False
• Mediation analysis experiment: Number of arguments on attitude – Number of arguments: positive impact on attitude towards a product – Why? Amount of thoughts generated 
• Moderation The effect of.. on .....depends on the degree of consumer involvement 
• In factorial experiments there are two or more IVs with a main effect and interaction effects Ja
• What are the Source and message variables? Source credibility  Source attractiveness  Argument quality and message structure  Message sidedness  Argument-based and affect-based appeals 
• Source credibility like Expertise and trustworthiness is more effective when recipients not particularly motivated to process the message Ja
• Expertise knowledge, experience
• Trustworthiness The souces has no vested interested 
• Overhearing bystanders are more influenced than targets by trustworthiness Ja
• Attractiveness halo-effect We perceive attractive people as generally better Heuristic: “What is beautiful is good”
• Argument quality –  What is communicated –  Strength/persuasiveness of arguments –  Highlight desired product attribute and certainty the product delivers that attribute 
• Message structure – How information is communicated, order of presentation – Save best argument for last when people are distracted • Recency effect – Open with best arguments when you have full attention • Primacy effect 
• One-sided messages (only arguments for a product) are more effective when initial attitude is favorable Ja
• Two-sided messages (Arguments both for and against) are more effective when brand is unfamiliar, or initial attitude is unfavorable Ja
• Use primacy effect when you have full attention (open with best argument) Ja
• Use Recency effect when people are distracted (best argument at last) Ja
• Fear-arousing communication makes consumers prevent risks by buying the product (e.g. insurance) or by not buying the product (e.g. smoking) Ja
• With experiential products use Affect-based appeals (based on taste, flavour, style) Ja

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