Chapter 1 Flashcards
Advertising
Any form of paid communication by an identified sponsor aimed to inform
and/or persuade target audiences about an organization, product, service, or idea.
The first type of advertising was
“outdoor advertising” done by traders and merchants
Industrial Revolution between 1730 and 1830
boosted advertising practice
o Large-scale diffusion of division of labor
o Accelerated scale of production
o Markets transformed from being mainly local to regional and finally even
global
o Pivotal role of advertising as a necessary lubricant for economic traffic
Advertising cannot be said to create consumer needs, but it is
capable of channeling
those needs by reshaping them into wants for specific products and services
Brand
The label with which to designate an individual product and differentiate it from
competitors.
Unique Selling Proposition (USP)
A summary statement used to meaningfully
differentiate the brand from the competition.
Types of advertising media:
o Outdoor media (e.g. clay tablets, place cards, handbills and poster bills)
o Newspapers and magazines
o Television, radio, and the Internet
-Internet coexists next to more traditional mass media, rather than
eliminate them
Consumer segments
Advertising aimed at a specific group of consumers that share
common interests, values, or lifestyles.
Informational/argument-based appeal:
Ads that straightforwardly inform consumers
what is for sale, at what price, and where one can buy it.
o Popular from the 1800s to the early 20th century
o Hard-sell approach
Emotional/affect-based appeal:
Ads that aim to influence the consumer’s feelings and
emotions rather than thoughts.
o Soft-sell approach
o Developed in the early 1900s
The functions of advertising
Commercial sponsorship
1. Facilitating competition among firms
o Competition for attention, preferences, and financial resources
- Communication with consumers about products and services
- Funding public mass media and other public resources
- Creating jobs
- Informing and persuading the individual consumer
o Informing → emphasis on creating or changing knowledge and beliefs
o Persuading → emphasis on generating or changing evaluative responses
The information function varies with product category
o Informational appeals more frequently used for durable, rather than non-
durable goods
o Informational appeals more frequently used in developed, industrialized
cultures
o Information about performance, availability, components and attributes, price, quality, and special offers
Product life cycle
An inverted U-shaped curve that is related to the diffusion or
spreading of a product across the marketplace from its initial introduction to its decline
and ultimate demise.
- Introduction – informing consumers, creating brand awareness, induce
product trial - Growth – building market share, vis-à-vis competition
- Maturity – consolidating market share, creating consumer bran loyalty and
maintaining top-of-mind awareness - Decline – informational appeals for new and additional uses for the product
Two basic strategies for persuasion:
- Alpha strategies/approach motivation: Directly increasing the attractiveness of
the offer or the message - Omega strategies/avoidance motivation: Reducing consumer reluctance to
accept the position.
Alpha strategies/approach motivation:
Directly increasing the attractiveness of
the offer or the message
Omega strategies/avoidance motivation:
Reducing consumer reluctance to
accept the position.
The effects of advertising: a psychological perspective
- Naïve approach: Assumes that advertising must be effective, simply because it is so
ubiquitous and advertising expenditures are vast and ever increasing. - Economic approach: Tries to address the effects issue by correlating advertising
expenditures with aggregated changes in sales volume.
-Media approach: Conceptualizes advertising effectiveness in term of the number of
individuals in a specific target population who have been exposed to a messages.
o An effective message is one where many consumers of the target segment
have been exposed, and relatively few consumers outside the target segment
o Cannot inform us on the impact of this exposure
-Creative approach: Assumes that a message is effective to the extent that it is well-
made and creative.
o Equating effectiveness with creativity
-Psychological approach: Aims at identifying effects of advertising at the individual
level. (- Relates specific advertising stimuli to specific and individual consumer
responses, - Intrapersonal, interpersonal, and group-level psychological processes, - Requires being as explicit as possible about the types of consumer responses,
the types of advertising stimuli affecting these responses, and the types of
postulated, causal relations between advertising stimuli and consumer
responses)
Cognitive consumer responses
Beliefs and thoughts about brands, products, and
services that consumers generate in response to advertising.
Affective responses
Various more or less transient emotions and moods that can
occur as a function of ad exposure and differ in valence (positive vs. negative) and
intensity (i.e. arousal).
Behavioral responses
Intention and actual behavior in response to advertising
Consumer responses
- Cognitive consumer responses: Beliefs and thoughts about brands, products, and
services that consumers generate in response to advertising.
o Attitudes - Affective responses: Various more or less transient emotions and moods that can
occur as a function of ad exposure and differ in valence (positive vs. negative) and
intensity (i.e. arousal).
-Behavioral responses: Intention and actual behavior in response to advertising.
Experiment:
Manipulating one or more antecedents, and subsequently assessing their
impact on the consequence.
- Suited to establish causality
- Random assignment assures equal influence of extraneous variables in the
different conditions
Mediation analysis:
Attempts to identify the intermediary psychological processes that
are responsible for the effect of an independent on the dependent variable.
- Independent variable has an impact on the assumed mediator
- Variation in the mediator significantly accounts for variation in the dependent
variable - Controlling for the mediator significantly reduces or eliminates the impact of
the independent variable on the dependent variable
Factorial experiments
Experiments in which two or more variables are manipulated
within the same design.
