Consumer Information Processing

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
5
How Consumers Process Information

• Stages of Information Processing
• Selective Perception

Retention
Acceptance/ Yielding
Comprehension
Exposure
Attention
Selective Retention
Selective Acceptance
Selective Comprehension
Selective Exposure
Selective Attention
6
Theory of Reasoned Action

• Fishbein Azjen

Evaluation of Product Attributes
Overall Product Evaluation
Intention To Buy
Behavior
Brand Beliefs
Social Norms
7
Attitude Measurement

• Multi-attribute Attitude Model
• where,
• Ao attitude toward the brand
• Bi beliefs about the brands performance on
  attribute i
• Ei importance attached to attribute i
• n number of attributes considered

n Ao S Bi x Ei i 1
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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
Temporary attitude shift

• Motivated to Process?
• Involvement
• Relevance, etc.

Yes
No

• Peripheral cue present?
• Source characteristics
• Visual imagery
• Executional elements

Yes
No

• Ability to Process?
• Issue familiarity
• Arousal, etc.

Yes
No
Nature of Cognitive Processing Mostly
Mostly Mostly Favorable Unfavorable Neutral
Thoughts Thoughts Thoughts
Retain Initial attitude

• Cognitive Structure Change
• New cognitions adopted
• Different responses

No
Yes
Yes
Elaboration Likelihood Model
Persuasion enduring positive attitude change
Boomerang enduring negative attitude change
10
Storage Retrieval of Information
Incoming Information
Exposure
Sensory Register
Signal Strength
Pertinence
Attention
Short Term Memory
Encoding (Rehearsal)
Retrieval (Cues)
Retention
Long Term Memory
11
Next Time

• Read Chapters 4 -5
• Team Proposal is Due on Monday