1. Decision Making MKT 846 Professor West

2. Agenda Looking back… What clues can our “information processing model” provide? Evaluating Ad Effectiveness The Art of Persuasion What should Levi Strauss & Co. be doing? Relating attitudes to choice The role of cognition, emotions, and involvement Doing background research for your project Mr. Chuck Popovich will demonstrate resources available on-line and in the library

3. Measuring Advertising Effectiveness McGuire Model Testing Ad Effectiveness Exposu re Attentio n Comprehe nsion Accepta nce/ Yielding Purcha se Retenti on Circulat ion, Reach Listener Recogni tion Recall, Checkli sts Attitude, Purchase Intent Delayed Recall Scanne r Data

4. Tactical Decisions Objectives: Decisions: Source: Attractive Credible Familiar Channel/Me dium: TV Magazine Exposu re Attentio n Comprehe nsion Yielding Retent ion

5. Tactical Decisions Objectives: Decisions: Vehicle: Superbowl Message Execution: Humor Emotional Fear Appeal Comparative Two-sided Exposu re Attentio n Comprehe nsion Yielding Retent ion

6. The Art of Persuasion Hierarchy of Effects Models: Models: Stages:AIDADAGMAR Innovation/ Adoption Information Processing Think (Cognitive) AttentionAwareness Knowledge AwarenessExposure Attention Comprehensi on Feel (Affective) Interest Desire Liking Preference Conviction Interest Evaluation Yielding Retention Do (Behavioral) ActionPurchase Trial AdoptionBehavior

7. The Case of Levi Strauss & Co. Founded in 1853, Levi Strauss & Co. (LS&CO.) is one of the world's largest brand-name apparel companies with sales in more than 100 countries. Seventh consecutive year of sales decline After peaking at $7.1 billion in 1996, Levi's sales have slipped every year, and the company has warned that it expects 2003 revenue to come in at 6 to 7 percent below the prior-year level. Fiscal 2002 sales were $4.14 billion. Levi's remains one of the best-known trademarks in U.S.

8. Post Purchase Evaluation Purchase Decision Alternative Evaluation Information Search Decision Making Traditional Model: Problem/Opport unity Recognition

9. Four Paths … Cognitive processing: Think Feel Do Experiential processing: Emotional FeelDo Think Impulse DoFeel Think Habitual processing: DoThink Feel

10. The FCB Planning Grid ThinkingFeeling High Involvement 1. Informative (thinker) Investments, House, Appliances Think – Feel - Do Implications Test: Recall, Diagnostics Media: Long copy, reflective vehicles Execution: Information, Demonstration 2. Affective (feeling) Jewelry, Cosmetics, Apparel, Sports Car Feel– Do – Think Implications Test: Attitude Change, Arousal Media: Large space, Image specials Execution: Impact Low Involvement 3. Habit Formation (doer) Food, Household Items, Cleaners Do – Think – Feel Implications Test: Sales Media: Small spaces, 10 sec radio, POS Execution: Reminder 4. Self-Satisfaction (impulse) Cigarettes, Liquor, Candy, Magazines Do – Feel – Think Implications Test: Sales Media: Billboards, Newspaper, POS Execution: Attention getting

11. Next Time… Duncan Chapter 6 Purvis pp 1 – 18 Once your team has received a “go ahead” on your proposal it is time to do background research and write-up a situation analysis that incorporates: Industry information, Company and Competitor information, Consumer information, and Environmental Factors & Trends