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50 Cards in this Set

  • Front
  • Back
Functions of Advertising (7 Functions)
Economic - Facilitating Competition, Funding Mass Media, Creating Jobs
Societal - Transmission of Culture
Consumer - Informing Consumers About Products, Persuade Individuals, Creating and Changing Consumer Needs
Informing
Reports Factual Information (Price and Performance)
Persuading
Uses consumers' emotions, anxiety, psychological needs and desires to sell the product
Three Conditions of Causality
Correlation, Temporal Sequence (seeing ad before purchasing), No Other Explanation
Advertising as Market Power (5)
-Affects consumer preferences and tastes
-Consumers become brand loyal and less price sensitive
-Potential entrants must overcome established brand loyalty, entry costs are high
-Concentrated industry, firms are largely protected by new competitors
-Firms can charge more and are not required to compete on price
Advertising as Information (6)
-Informs consumers about product attributes
-Consumers become more price sensitive and only buy "best" value
-Encourages competitor entry into the market by informing consumers
-Competitive rivalry is increased, efficient firms remain
-More informed consumers lead to higher innovation and lower prices
-Industry prices are decreased
Societal Criticisms (4)
-Advertising encourages materialism
-Advertising makes people buy products they don't need
-Advertising creates and perpetuates negative stereotypes
-Advertising finances most major media options
Cognitive Response
The mental action or process of acquiring knowledge and understanding through thought, experiences, and the senses.
Cognitive Response Measures (4)
-Awareness/Attention
-Recall and Recognition
-Knowledge or Beliefs
-Attitude
Affective Response
Consumer's emotions or feelings about a particular brand.
Affective Response Measures (3)
-Feelings - "PSA's" illicit emotional response from viewers
-Emotion - Play off emotions. Usually fear, anger, viewers want to take actions
-Moods - Affects moods of viewers
Behavioral Response
Observed actions in response to a stimulus.
Behavioral Response Measures (2)
-Behavioral Intention - "Do you intend to purchase my service/product?"
-Actual Behavior - Actual measurement of those who purchased service/product. Strong link between intention and actual.
Source Factors (4)
-Targeting through specialty magazines
-Who delivers the ad (spokespeople)
-Must be a good fit to the product
-Must have expertise
Message Argument Factors (2)
-Strong arguments are more effective than weak arguments
-The more words, the more effective unless viewer doesn't care about the product
Message Structure Factors - Primacy
Viewers tend to remember things said first.
Message Structure Factors - Recency
Viewers tend to remember the most recent things said.
Affective Appeal Factors
Tend to remember ads that have a negative affect. People avoid brands and products they feel negatively about.
Economic Model of Effects
Consumers make decisions that lead to the largest net benefit to them in terms of the exchange resources at issue.
Utility Maximization
Best product one can get with the least amount of money.
Net Benefit
The benefit received from paying less for a good than the maximum amount that the person is willing to pay for it.
Criticisms for Economic Model of Effects (4)
-Does not account for individual level psychologic processes
-Ignores intermediate effects
-Ignores delayed effects
-Does not include recommendations, brand loyalty, extra income, relevancy, etc.
Hierarchy of Effects Models - AIDA
(Must move through each stage to get to the bottom)
-Attention - If viewers aren't paying attention to the ad they won't have interest
-Interest- Have to get viewers interested in the product
-Desire- Have to create a desire to purchase
-Attitude- Have to motivate people to purchase
Hierarchy of Effects Models - DAGMAR
Defining Advertisings Goals and Measuring Advertising Results
-Awareness - must be aware of product and ad
-Comprehension - must comprehend product and ad
-Conviction - "this will fulfill my needs and wants"
-Action- understanding and interest of product
Hierarchy of Effects Models - Foote-Cone-Belding (FCB) Grid
-High Involvement + Thinking = Informative (Economic) Learn > Feel > Do (Cars, House, Computers)

-High Involvement + Feeling = Affective (Psychological) Feel > Learn > Do (Jewelery, Pets)

-Low Involvement + Thinking = Habitual (Responsive) Do > Learn > Feel (Laundry soap, Dishes)

-Low Involvement + Feeling = Satisfaction (Social) Do > Feel > Learn (Candy, Alcohol, Cigarettes)
Hierarchy of Effects Criticisms (3)
-Lack of empirical support
-Problematic assumptions - high involvement, passive consumers, advertising as primary source of influence
-Overly simplistic
Information Processing Models - Cognitive Response Model
Consumers combine items of information about attributes to reach a decision. They emphasize beliefs as key determinants.
Information Processing Models - Dual Processing Model
Consumers will use different processing strategies in different situations
When motivations are high, consumers: process information more systematically, rely more on ad argument strength, rely more on informational components
When motivations are low, consumers: process information superficially, rely more on heuristic cues
Information Processing Models - Unconscious Processing Model
Automatic processes that take place outside of our conscious awareness. Our brains notice things happening but dismisses them.
Mere Exposure Effect
Even ignored ads can have a later effect on behavioral decision making
Four Stages of Attention and Processing of an Ad
1)Preattentive Analysis
Incidental/Accidental exposure to ads. Information acquisition frequently involves very limited cognitive activtiy.
Feature Analysis
Processing perceptual features such as contours, brightness, contrast
Semantic Analysis
Capturing the meaning of the advertised product. Incidental exposure occurs by matching activation or differential lateral hemispheric activation.
Differential Lateral Hemispheric Activation
Ads are more likely to draw attention when the location of the focal ad can make use of the mobilized attention resources that are left unused.
Hedonic Fluency
The subjective ease with which stimuli are perceived and processed.
Four Stages of Attention and Processing of an Ad
2) Focal Attention
After an ad is noticed, it may be brought to conscious awareness. At this level ad messages are identified and categorized. Influenced by consumer motivation, involvement, and personality characteristics.
Message Salience
Extent to which ad message features contrast with the envionment
Vividness
Extent to which ad messages are emotionally interesting, concrete, and image provoking
Novelty
Extent to which information in advertising disconfirms existing consumer expectancies
Categorization
Process by which incoming information is classified as belonging to some category.
-Assimilation and Contrast
-Impression formation and impression conrrection
Four Stages of Attention and Processing of an Ad
3) Comprehension
Process of forming inferences pertaining to the semantic meaning of an ad
Cognitive Dissonance
the presence of incongruent relations among cognitions that frequently results in mental discomfort.
Truth Effect
It's easy to accept information in an ad rather than argue against it
Sleeper Effect
Repeatedly saying information in an ad is false despite the information repitition
Four Stages of Attention and Processing of an Ad
4) Elaborative Reasoning
The process by which the semantically represented ad message is actively related to previously stored consumer knowledge. Influenced by personality, quality of message argument, and involvement
Encoding
The processes involved in getting the information into the system by transforming an external stimulus into an internal representation which allows us to retain it in the cognitive system.
Storage
Involves information retention over time. Can be short term or long term.
Retrieval
The processes that allow us to find the information in our memory from long-term.
Atkinson and Shiffrin's model of Three Memory Components
-Sensory Memory - very brief
-Working or Short-term Memory - thinking, problem solving
-Permanent or Long-term Memory - information is encoded semantically
Levels of Processing
Items are remembered better the more we pay attention to them and the more deeply they are processed.