1. Consumer Information Processing MKT 846 Professor West

2. Agenda A look at advertising with consumers in mind… A Simple Model of Communication Essentials of Information Processing The Role of Attitude Formation and Change Elaboration Likelihood Model

3. Advertising Through the Eyes of the Consumer Brand Contacts Every exposure has the potential to provide new information Determine how a consumer or customer feels about a brand The firm controls only a few of these contacts planned vs unplanned

4. Basic Communication Model Field of Experience ReceiverSender Message Nois e Feed bac k

5. Stages of Information Processing: Selective Perception: How Consumers Process Information Exposure Selective Exposure Attention Comprehe nsion Acceptan ce/ Yielding Retention Selective Attention Selective Comprehe nsion Selective Acceptan ce Selective Retention

6. Theory of Reasoned Action Fishbein & Azjen Social Norms Evaluation of Product Attributes Brand Beliefs Overall Product Evaluation Intention To Buy Behavior

7. Attitude Measurement Multi-attribute Attitude Model: where, A o = attitude toward the brand B i = beliefs about the brand’s performance on attribute i E i = importance attached to attribute i n = number of attributes considered n A o =  B i x E i i =1

8. Attitude Change Elaboration Likelihood Model – Examines how consumers process advertising messages Cognitive Responses that occur while reading, viewing, or listening to an ad are captured. Product/message related thoughts Supporting arguments and Counterarguments Source-oriented thoughts Source Bolstering and Source Derogation Ad execution thoughts Reactions or feelings toward the ad The frequency and nature of responses determine whether attitude change has occurred

9. Persuasive Communication Motivated to Process? Involvement Relevance, etc. Motivated to Process? Involvement Relevance, etc. Ability to Process? Issue familiarity Arousal, etc. Ability to Process? Issue familiarity Arousal, etc. Nature of Cognitive Processing Mostly Mostly Mostly FavorableUnfavorable Neutral Thoughts Thoughts Thoughts Nature of Cognitive Processing Mostly Mostly Mostly FavorableUnfavorable Neutral Thoughts Thoughts Thoughts Cognitive Structure Change New cognitions adopted Different responses Cognitive Structure Change New cognitions adopted Different responses Persuasion: enduring positive attitude change Persuasion: enduring positive attitude change Boomerang: enduring negative attitude change Boomerang: enduring negative attitude change Temporary attitude shift Temporary attitude shift Peripheral cue present? Source characteristics Visual imagery Executional elements Peripheral cue present? Source characteristics Visual imagery Executional elements Retain Initial attitude Retain Initial attitude Yes No Elaboration Likelihood Model

10. Storage & Retrieval of Information Exposure Attention Retention Signal Strength Sensory Register Short Term Memory Long Term Memory Incoming Information Pertinence Encoding (Rehearsal) Retrieval (Cues)

11. Next Time… Read Chapters 4 -5 Team Proposal is Due on Monday