CHAPTER 4

How Advertising Works

CHAPTER 4

How Advertising Works

The debate on how advertising works is actually eight decade old. It started post world

war-I when the packaged goods companies, which came into being to supply packaged

goods to the fighting armies had to find a market to sell their produce. They took the route

of advertising and mass distribution to ensure that their produce is consumed. By 1930s,

during the years of great depression, the economists and social activists’ started attacking

the means of such activities like advertising and mass marketing methods. Their plea was

that advertising forces people to buy things which they don’t need and can’t afford, and

thereby create frustration and artificial demand. With such circumstances, the onus to

defend the advertising as an institution came on the advertising and marketing

professionals. As the debate heated up, researchers, academicians and practitioners, all

strived to find a scientific explanation to ‘how advertising works’.

Advertising is so varied that almost anything we ever say about it is liable to be refuted

by some contrary example. Yet we recognize advertising when we see if. For example, a

commercial for a soap powder, a press advertisement or poster for a new car, or a circular

from a bank describing a loan scheme are all very different in objectives and form. Yet

they are all seen as ‘advertising’. A commercial could be aimed at building brand

associations, an offer or a price cut for generating footfalls. And we would readily agree

that the distinctiveness we recognize as ‘advertising’ has something to do with the way it

works - even if in the next breath we go on to say that we don’t know how it does.

Over the years various explanations have emerged on how advertising works. Some are

based on advertising’s effects i.e. communication role and generated sales, while others

are based on advertising’s elements environment i.e. social symbolism and cultural

factors. In the first kind of explanations, the basic assumption is that the use of

advertising as marketing tool happens to fulfill ultimate marketing objectives (which

could be gaining or retaining market shares). In the second kind of explanations the

assumption is that advertising has a limited role in marketing activity i.e. to inform or

persuade people and can not directly affect the sales.

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The advertising industry has long been challenged to explain how advertising works. That

it does work is not an issue. But how it works and why it works are critical concerns still

unresolved. The purpose of this chapter is to draw together what we know about

‘advertising’ which may be more than we think, and to try to clarify the confusions that

surround the question of what it is and how it works. The chapter also outlines the reasons

to study “how advertising works”, the advertising theories, various models explaining

how advertising works and a case study of how advertising woks.

4.1 Why study how advertising works: An Introduction

An understanding of how advertising works is imperative today because of the following

reasons that have significantly impacted the advertising and marketing landscape:

• Increasing costs and competition.

• It is important to manufacturers as a marketing expense/brand investment.

• It is important to advertising agencies as a product of their creative energies.

• Necessity for a proven theory of ad effectiveness. It would help in strategy planning,

response measurement and sales prediction.

• It is complex - communication theories are not unified and empirical evidence is

scarce.• It is dynamic because recent marketplace theories have provoked newer, controversial

theories.

• The notion of passive consumer is no longer, valid. People can selectively avoid or

notice, accept or reject advertising.

• To take a progressive step to understand the dynamism of advertising and have

several viewpoints for looking at it.

• For account planners to learn what happens at each stage and device effective

strategies for the client.

• For the account planner to boil down to a specific route or tool of advertising to attract

the customers.

• For media planners it helps in deciding how much advertising to apply to which

product, category, TA.

• They give a holistic picture of the environment and new insights to the creative

people.

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4.2 Initial work on how advertising worksGeorge Gallup1 laments that there has been a lack of intellectual interest in the theory of

advertising - how it works and why it works. This lack of interest in what he calls the

scientific side of advertising has resulted in the fact that advertising remains shrouded in

mystery and the profession and its practitioners have been held in low esteem. This has

happened because practitioners have concentrated far too much attention on the product

and far too little on the need the product satisfies. When practitioners think solely in terms

of selling the product they are regarded as “hucksters”. But when they think of providing

products to satisfy the human needs in a modern society, they are regarded as socially

responsible persons.

To support his view, he has forwarded his theory of how advertising works. This

according to him is “the mental processes through which an individual goes in reaching a

decision to buy or not to buy.”

He states that there are three things that operate in almost all advertising:

• A consumer need, felt or latent

• A product that meets the need.

• A price (stated or its price group implied).

It can be visually represented as an equilateral triangle with three apexes - need, product

and price.

“Need” can be broadened to include interest or problem. “Product” can also mean a

service or solution to a problem. “Price” means money and also sacrifice (monetary or

otherwise) required to obtain the product, service or solution.

The mental process consists in holding in balance these three factors- need, product,

price- with the decision to buy or not to buy reached with a weighing process. This

process essentially remains the same whatever the product. It is not effected by the time

factor.

1 George Gallup (1974): "How Advertising Works”, Journal of Advertising Research, Volume 14, Number 3. June 1974,

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The role of advertising in this process is vital.

• It seeks to reach the prospective buyer, bringing to his attention a product or service

that will meet his needs.

• It tells the prospective buyers about the particular features or special advantages of the

advertised brand over other competing brands-why it meets his needs better than

others.

• A favorable attitude towards the brand can be established by the ads in a campaign.

The buying decision will be complete only when the consumer weighs the price against

his need and the ability of the product to meet this need. If his need is more or if the

advertising has convinced him of its quality he will pay more for it.

However, George Gallup’s explanations were more based on the experiences he had

attained in dealing with innumerable experiments and researches for his clients and his

stint as an academician. These explanations needed empirical support for it to be accepted

widely by the practitioners.

4.3 Diverse schools of thoughts on how advertising works

There has always been two schools of thoughts as regards advertising as a business or

institutions. One school of thought believed that advertising is an art of persuasion and

the other school always believed that it is a science deeply rooted in communication and

psychology. Researches from both the schools of thoughts have tried to give an

explanation on how advertising works. The explanations coming from the later school of

thoughts, typically dominated by marketing research professionals, have relied on the

data from market place i.e. sales or inquiries generated from the advertisements.

At an ARF workshop in 1991, Information Resources Inc. (IRI) presented findings from

its “How Advertising Works” study, drawing upon the largest longitudinal database ever

assembled of purchase behaviour in a controlled television -advertising environment.

Research System Corporation has found that many oflRPs findings converge with those

obtained over the years using RSC’s advertising database. Areas of convergence include

copy-styling validity, the role of advertising weight, and increased buying rales among

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brand users. These comparison of IRI’s Behaviour Scan tests and RSC’s ARS database

have strengthened the empirical foundation for understanding how advertising works.

Over the years, numerous studies have been conducted to determine how advertising

works and how to measure advertising’s ability to affect sales. As early as 1960s, studies

conducted by Schwerin Research Corporation (SRC) determined that the sales

effectiveness of advertising was more dependent on copy quality than on media weight.

This pioneering study, replicated in Germany in 1968, also suggested that SRC laboratory measures of persuasiveness was predictive of these sales effects2.

In the 1970s , research systems corporation (RSC), the successor of SRC, related the

persuasiveness of commercials to new product trial using 28 advertising only controlled-

store test markets. A correlation of 0.85 suggested that the higher the persuasiveness of

the advertising, the greater the sales response (as measured by ATU studies). The results

confirmed the correlation ship of the persuasiveness of advertising copy to in-market effects3.

Once the relationship of predictive measure of copy quality had been confirmed, Stewart

and Furse published a study sponsored by the Marketing Sicene Institute (MSI) analyzing

1059 commercials across 115 product categories to determine which of over 150 specific

strategic and executional elements were correlated with persuasive commercials (as

determined in ARS system). This groundbreaking study identified a set of validated

diagnostics (i.e., significant correlation with a validated criterion measurement) for increasing the probabilities of creating sales-effective advertising4.

The use of split-cable and electronic scanner panels to measure sales provided the next

advertising laboratories for researching advertising effects. From 1987 through 1990, a

2 Buzzell, R.D. (1964): “Predicting short, term changes in market share as a function of advertising strategy"; Journal of Marketing Research 1(3), 27-315 Blair. M.H. (1987): “An empirical investigation of advertising svear-in and wear out.” Journal of Advertising Research 27(6), 45-50

A Stewart, 13. W., and I).11. Purse (1984): “Analysis of the impact of executional performance". Journal of Advertising Research, 24 (6), 23-26

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series of established brand advertising research studies were published relating advertising weight, related recall, and persuasiveness to in-market sales5.

The studies confirmed the 1960s findings that weight alone is not sufficient to achieve

measurable sales effect from advertising. Advertising weight increases showed

measurable sales differences (at 9 to 12 month test) in only 12 to 20 media weight test cases6.

Related recall was the traditional measure of copy quality in use in the 1970s and much

of the 1980s. This measure was accurate in predicting the outcome of the weight tests

(same ad, different spending levels) and copy tests (between ads, same weight) in only 14

of the 27 cases, a rate of 52 percent. Thus, recall is not a consistently accurate measure;

about half the time recall results are predictive of in-market results, leading to a false

reliance on related recall as an advertising criterion measure.

Persuasiveness has a dramatically better rate of prediction. Spending applied behind

more persuasive ads showed a significant sales advantage. Spending behind an ad with

low of no persuasiveness produced no difference in sales. The copy “A” versus copy “B”

tests in the study suggested that, when there was significant differences in persuasiveness, significant differences in sales resulted7.

4.4 Some recent developments in scientific explanations of how advertising works

In 1991, the Journal of Advertising Research published “The ARF Copy Research

Validity Project,” a study that related 46 measures of advertising effectiveness to five

pairs of commercial executions aired in split-cable markets. The study was an attempt to

identify which of various types of copy testing measures under the broad headings of

persuasion, salience, recall, communications, liking and diagnostics best predicted the

results of a split cable advertising test (the ARS Persuasion measure was not included in

the study). The ARF study suggested that two measures, “commercial liking” and

5 Blair, M.I1. and K..II. Rosenberg (1994): "Convergent findings increase our understanding of how advertising works", Journal of Advertising Research, May/June 1994, 35-456 Blair (1987): Opcit7 Blair, M.l 1. and K.K. Rosenberg (1994): Opcit

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“brand name recall from a product category cue,” had evaluative power with regard to split-cable outcome8.

A replication of the findings was conducted by RSC using previously examined split-

cable tests and questionnaire used in the ARF study. The results from this broader-scale

study of over 20 split-cable cases did not support the use of either “commercial liking” or

“brand-name recalF as a valid criterion measure of advertising copy quality.

Recently, Information Research Resources, INC (IRI) published findings from its “How

Advertising Works” study (HAW), based on nearly 400 Behaviour-Scan tests from 1982

to 1988, providing the largest longitudinal database ever assembled of purchase bahaviour

in response to experimentally controlled television advertising. The study included 217

established -brand and 76 new-brand weights tests (“one group of households received a

different total spending level relative to a matched second or third group”) and 86

established-brand copy tests (“both groups households were exposed to different copes”).

Although this effort must be applauded, IRI did not related conclusions to the extensive body of research already published9.

The purpose of the IRI analyses (as presented at the ARF Marketplace Advertising

Research Workshop held in November 1991) was:

• “To identify why some brands respond positively to increased television spending

while others do not”

• “To determine whether television advertising exhibits a long-term effect on brand

performance”

• “To examine whether standard copy test scores (recall and persuasion) are predictive

of sales success,” and finally,

• “To identify general characteristics of successful TV media plans”

Although not stated by IRI in their published papers, the findings of “How Advertising

Works” converge with those obtained over the years using RSC’s advertising database.

* Haley, R.I., and A.L. Baldinger (1991): "The ART copy research validity project”, Journal of advertising research 31 (2 ), 11-32

lilair, M.H. and K..13. Rosenberg (1994): Opcit179

This convergence itself solidifies the empirical foundation for under-standing how

advertising works and verifies the IRI findings.

4.5 Traditional advertising theories explaining how advertising works

It is well understood that advertising is a strategic tool in the hands of marketers to

achieve their marketing objectives. However, advertising alone is not enough to meet the

objectives of the marketer. Other tools and practices like product concept, distribution,

pricing policies and strategies and support of dealers have to play their respective roles

for meeting the sales and marketing objectives of a marketer. Therefore, it is not possible

to give satisfactory and universally acceptable explanations of how advertising works

using sales as a criterion. On the other hand, if we consider advertising as a

communication, or a component of the whole in a context of culture and society, we get

to see various explanations of how advertising works.

Richard Vaughn10 has given a background of the development of the understanding of

how advertising works. In the 1950s, the traditional Advertising theories dominated. They

were essentially of four types:

• Economic: A rational consumer who consciously considers functional cost-utility

information in a purchase decision.

• Responsive: A habitual consumer conditioned to thoughtlessly buy through rote,

stimulus-response learning.

• Psychological: An unpredictable consumer who buys compulsively under the

influence of unconscious thoughts and indirect emotions.

• Social: A compliant consumer who continually adjusts purchases to satisfy cultural

and group needs for conformity

Economic theory says that consumers act in their own financial self-interest. They look

for maximum utility at the lowest cost. Price-demand equations are therefore used to

calculate aggregate consumer behavior. Consumers must have functional information to

buy a product. This theory applies to functional products.

IN Richard Vaughan, (1980):"!low Advertising Works: A Planning Model", Journal of Advertising Research, Volume 20, Number 5

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Responsive theory propounds that: consumers are lazy and want to buy with minimum

effort. They develop habits through stimulus-response learning. The process is non-

rational and automatic as repetition builds and then reinforces buying activity for routine

products. Information serves a reminder/information role rather than thoughtful purpose.

Psychological theory explains consumer behavior as ego involvement and an interplay

between the id, ego and super ego. This is essentially unpredictable and undeliberate.

Implicit product attitudes are more important than the functional benefits for the selective

products that touch people so deeply.

Social theory describes consumers as imitative. People watch what others buy and

comply/adjust just to get along or be inconspicuous. Group role, prestige, status and

vanity concerns are involved. Opinion leaders and word-of-mouth communication play an

important role.

All these theories contain some element .of truth. Economic motives hold true for very

expensive products and highly functional ones. Responsive buying occurs for many

routine products.

Though these theories are valid, Vaughn claims that they lack the specificity to make

them practical.

4.6 Consumer behaviour perspective on how advertising works

Demetrios Vakratsas and Tim Ambler11 reviewed about 250 journal articles and books to

arrive at an understanding of how advertising works. They have developed a taxonomy of

model, each class governed by common theoretical principles.

The criteria for choosing the models is based on a sample framework of how advertising

works is illustrated in fig 4.1.

11 Demetrios Vakratsas and Tim Amblcr(1999) "How Advertising Works: What Do We Really Know?", Journal ol'Markeling, Vol.63, January 1999.

Fig 4.1: A framework for studying how advertising works

Motivation, ability (involvement) , I

Consumer

.Qjemupn AffectpmMMExperience I

.-. Consumer behavior: ." Choice, consumption/:

Loyalty, habit, and so forth-

Sourcc: Demetrios Vakratsas and Tim Ambler(1999) “How Advertising Works: What Do We Really Know?”, Journal of Marketing, Vol.63. January 1999.

Advertising, of own and competitive brands, is input for the consumer. The media

content, scheduling, and repetition are components of the input and constitute the

advertising strategy that trigger a consumer’s response.

The intermediate type of effect shows that to affect consumer behavior advertising must

have mental effect. Cognition, the “thinking” dimension, of a person’s response, and

affect, the “feeling” dimension, are two major intermediate advertising effects. Individual

purchasing, brand choice, usage are the consequential, behavioral aspects of the model.

But the consumer’s mind is not a blank space and contains conscious and unconscious

memories of product usage. Thus, the behavior feeds back to experience, which is the

third intermediate effect. Individual responses to advertising arc mediated by factors such

as motivation and ability to process information.

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4.7 A taxonomy of all the models explaining how advertising works

Based on the above framework a taxonomy of models as shown below was drawn up. It

describes the various theories and models of how advertising works. This taxonomy-

builds progressively from models that assume no intermediate effects (market response)

to models that assume only one type of intermediate effect. (Cognitive information or

pure affect).

Model Sequence of Effects

Cognitive Information "think"Pure Affect "feel" ■

Persuasive Hierarchy "think"—>"feel"—>"do"Low-Involvement "thi nk"-> "do"—> "feel"

Integrative hierarchy not fixed, depends on product, involvementHierarchy-Free no particular hierarchy of effects is proposed

It further describes modes that assume more than one type of intermediate effect in a

certain hierarchy (persuasive hierarchy models or low-involvement hierarchy models),

followed by models with varying hierarchy of effects (integrative models) and finally

models that assume no hierarchy of effects at all (hierarchy-free).

4.7.1 Market Response Models

These models are econometric models of market response to advertising and do not

consider intermediate effects at all. They typically relate advertising, pricing and

promotional measures to purchase behavioral measures such as sales, market share.

Eg. Measurement of loyalty would be based on repeat buying behavior than attitude

towards the brand

Market response models are further divided into aggregate level and individual level.

Aggregate level studies use market level data such as brand advertising expenditure or

gross rating points or brand sales and market share. Individual-level studies use measures

such as individual brand choice and number of exposures for an individual (or household)

derived from single source data.

Some of the conclusions of this class of models are as below:

• Short term effects: advertising elasticities

I. Short term elasticities range from 0 to 0.20.

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2. Advertising elasticities for durables are higher than that for non-durables.

3. Promotional elasticities are up to 20 times higher than advertising elasticities.

• Dynamic advertising elasticities

1. Advertising elasticities are dynamic and decrease during the product life cycle.

2. Advertising elasticities are therefore higher for new than for established brands.

• Long term effects: Advertising carryover

1. Purchase reinforcement and habitual loyalty effects are stronger than advertising

carry over effects.

2. 90 % of advertising effects dissipate after three to fifteen months.

• Advertising response functions, reach and frequency

1. Returns to advertising are usually diminishing- the first exposure is the most

influential for short-term sales or share gains.

2. For frequently purchased packaged goods, share returns to advertising diminish

fast, typically after the third exposure. After the third exposure, advertisers should

focus on reach rather than frequency.

Here we will be discussing the topic based on the views propounded by researchers and

planners world over. Does advertising increase market penetration?

One of the topics under consideration when one talks of market response to advertising is

“does advertising increase market penetration? “ Like so many other questions, this is

also a question that cannot be answered in a ‘yes’ or a ‘no’.

• “Frequency Marketing"'. Brian Wansink and Michael L. Ray12 talk about

frequency marketing in relation to mature markets where they say that advertising

will not lead to increase in market penetration but will provide only two options:

- It can help a consumer in making a choice between existing or new brands in the

market, that is promote switching

Walsink, Brian and I.. Ray. Michael, (1992) "Estimating an Advertisement's impact on one's consumption of a brand". Journal of Advertising Research-May/June, 1992.

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- Or it can influence him to increase usage of the product/brand, that is promote

more frequent consumption.

This is particularly true for high share low growth markets, where it is difficult to grow

by attracting new consumers but easy by targeting the existing ones. For measuring

impact of advertising on such consumers Walsink and Ray proposed a new measure

called the “consumption intention measure ”. There are certain product categories where

the direct impact of advertising will not be a behavior change that translates into

purchase, but rather consumption. What is in operation is the ceiling effect, that is an

attitude already exists for the advertised brand, and an exposure will only translate it into

behavior.

They quote an example of Campbell’s Soup sufficiently stocked in an average

American’s household. So a advertising exposure will not make the consumer go tot the

shop top buy it, rather direct him to the pantry for consumption. In which case, all

purchase intention measures will fail to measure the effect.

However, a limitation of this measure is that it does not provide an answer for product

categories other than FMCGs like durables or those which are low involvement but still

are not always stocked in the pantry. Probably, for such situations, purchase intention still

holds true. Moreover, its applicability to Indian market is still to be tested. As opposed to

what is mentioned above, sometimes Abr (Attitude towards brand) is not a necessary

criteria for consumption. E.g. In cases of discounts or promotions it is not a pre-condition

to change attitude before changing behavior. When a brand is running on a promotion, it

also attracts a number of new users and switchers, who will revert back to their old brands

once the promotion is off. So, even though in the short run advertising seemed to increase

penetration, in the long run the effects might be leveled out.

This is what Tim Broadbent13 also means when he talks about a “Zero sum game”.

Advertising does not grow a category or create demand, it only directs choice from one'

brand to another. When we talk about market responses to advertising, we do not talk of

individual consumers or of categories, but of overall cffect(s) on the market. It becomes

l! Boadbcnt, Tim. Bates, U.K. (2001): "I low Advertising Bays Back”. Adniap, 2001

185

absolutely necessary to throw some light in the debate between long term and short-term

sales effects of advertising.

Researches have been undertaken by authors like J.P.Jones, Colin McDonald and

Burckhard to establish that sales effects can be measured only in the long term. They have

found that sales increases in shoit term are negligible, and exclude repeat buying effect in the long term. Even the most recent planners like Broadbent14 have taken the long term

view of sales effectiveness of advertising. In his paper published in 2001, Broadbent

explains by taking the results of a study done in UK, where people who bought on price promotions were mostly current users, this means that market did not grow as such, but

only increased usage among existing users, moreover, these current users who buy on

promotions for extra packs, larger pack sizes etc. will defer purchase in the long term, and

hence the effect in the long term will be neutral. These effects can be measured only in

the long term period.

Opposite to the function of deferred purchase is the function of repeat purchase. It is only

in the long run that we can wait and watch the Multiplier effect of advertising, where not

only will new consumers enter the market, but they will also buy again and again. One

study in US showed that sales effectiveness was 2.5 times that of initial sales uplift, and

similar for the next year.

But then the question is, which is the period that shows profitability? We think that the

short term can show profits but not profitability, precisely due to factors like repeat

buying, deferred buying and others.

It is only recently that the IPA has been considering not only longer but also broader

effects of advertising in its Advertising Effectiveness Awards l5, like the 1998 Orange Pic

case that tells how advertising led to increased shareholder value for the company. These

broader effects are the offshoot effects of advertising like those on retailers, distributors,

Boadbcnl, Tim. Bates, U.K.. (2001: Opcit15 The I'TSE’s Bright, the ITSE's Orange, Charles Channon Award Winner, Advertising Works 10 (1998): 33-60.

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shareholder value etc. that should also be considered while studying the overall market

response to advertising.

4.7.2 Cognitive Information Models

This class of models assumes that Consumer preferences, for example, the relative

weights of attribute importance, are not changed by advertising and consumer decisions

are only rational.

The role of advertising is to provide information / reduce search costs. (E.g.: shopping

time).

Three important conclusions:

• Advertising for search, experience and ambiguous goods: Advertising is more

effective for experience and credence than for search goods. Provides information that

inspection does not. Advertisements for search goods contain more product-oriented

information than do experience goods advertisements.

• Advertising as a signal of product quality: Increased advertising signals high quality

when costs of producing are low and consumers are less responsive to advertising.

• Advertising effects on consumer price sensitivity: Price advertising increases price

sensitivity, whereas non-price advertising decreases price sensitivity. Furthermore,

price sensitivity leads to lower prices.

When consumers rely on memory to retrieve product information, advertising

increases price sensitivity; when consumers rely on point-of-purchase information,

advertising decreases price sensitivity.

Practitioners have emphasized on factual information. Rosser Reeves (1961) propounded

the idea of Unique Selling Proposition (USP) as part of recognition of the idea that a

product must differentiate itself, if possible, through tangible product attributes, and then

communicate that differentiation positively. David Ogilvy paid credence to the idea that

“Promise, large promise, is the soul of an advertisement.”

4,7.3 Pure Affect Models

In sharp contrast to the cognitive models, this set of models focus on affective responses,

familiarity and feelings advertisements may evoke.

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One class of these theories, the so-called “mere exposure" theories, suggests that

awareness of the advertisement is not necessary, though awareness of the brand is. Thus,

consumers form their preferences on the basis f elements such as liking, feelings and

motions induced by the advertisement or familiarity triggered mere exposure to the

advertisement, rather than product/brand attribute information.

Two of these theories, the response competition and optimal arousal suggest that

unfamiliar advertising messages create hostility and take longer to reach their optimal

effectiveness. This may describe the advertising “wear-in” effect described in advertising

studies. A minimum (threshold) number of exposures is necessary for the advertisement

to have an effect on the consumer.

The two-factor theory suggests a wear-out effect: After several exposures, the effect of

advertising reduces. Researchers have shown that advertising typically works on both the

cognitive and affective planes. This class of models essentially introduced affective

responses to the study of advertising effects, and they have consistently shown to be

important.

4.7.4 Persuasive Hierarchy Models

Persuasive models introduced the concept of a hierarchy of effects, it implies that there

is an order in which things happen, with the implication that the earlier effects, being

necessary preconditions, are more important.

All our research literature is dominated by the ‘Hierarchy of effects’ models. The AIDA

model, the DAGMAR, and the Learn-Feel-Do models have been causes of innumerable

debates. Supported by many and refuted by many, these models no doubt are the pillars

of measuring advertising effects.

This section will touch upon the following topics, but not necessarily in the same order:

• Hierarchy of effects :

The fundamental of these models and theories is the following:

Cognition--------------► Affect -------------- ► BehaviorLeading (o Leading to

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• Various measures of advertising effects like Recall, Recognition, Persuasion,

Likability : The objective here is not to establish the best measure or to put one over

the other, rather to list down the debate that has taken place over the years on these

issues, and to become sensitive to the fact that all these measures have their own

relevance and are still endorsed by advertisers in the industry today.

The first question that we will deal with is, whether an attitude shift is a measure of

effectiveness (where effectiveness is equated with behavior change). This section will be

primarily throwing light on views of different authors, and then trying to arrive at a

conclusion.

As far back as 1964, Festinger had devised a pre-post attitude shift. It is the difference

between scores of attitude before exposure to an ad and after exposure to the ad. A pre­

post attitude shift will measure the immediate impact of an advertisement on the

persuasion and preference score. However, according to Festinger, this attitude shift can

not be used in isolation, it has to follow a subsequent environmental change. Many other

planners like Rockeach also supported similar views.

Krugman took a different view when he talked of comprehension that ultimately alters attitudes, and not just awareness of and exposure to an ad. Crespi16 took a middle path

when he said that awareness and interest is necessary for the initial impact of the

commercial, but ultimately will transform into behavior only if it is comprehended the

way the advertiser wants it to be.

A brief description on the various measures of attitude change:

• Recall

• Recognition

• Persuasion

• Likeability

K'l lolbert, Neil (1972): “Key issues in Advertising Research”, Journal of Advertising Research, October

189

Recall - a necessary measure of attitude/behavior change?: The basis of all linear models17that have been used in advertising theory is Stapel (1971)

Recall---------► intent to buy --------- ► predictor of sales

Attention grabbed by an ad will generate interest in the product/brand and will be an

indicator of intention to buy and this intention will be a predictor of sales. There have

been other researchers who have undermined the role or importance given to recall as a

measure. As Haskins in 1964 had said that it is the response that the ad generates that is

of ultimate importance. He was more concerned with the end result of an ad and not the

process or any intermediate effect responsible for that end result. An ad can evoke two

types of responses:

— Teaching type: “What is the ad saying?”

Learning type: “What can the brand give to me?”

It is the learning type response that is more relevant because it will establish

meaning of the ad has been conveyed and this meaning can be transmitted

conscious learning (recall).

Similar were the views of Lexitt in 1968 when he said that “what went through your

mind” is a more important issue than the factual recollection of an ad because a person

might factually recall the ad, but still no understand the meaning of the ad, or the brand

might not be relevant to him.

Persuasion and recall: the two schools of thought in advertising

Abr (Attitude towards brand): This school of thought is concerned only with the

Persuasive power of advertising- and pre-post attitude shifts. The ultimate goal of any ad

is to stimulate purchase and impact of an ad can be measured only in terms of generated

“intent-to-buy”. Therefore proponents of this school arc more concerned with the

that the

without

l7l lolberl. Neil (1972): Opcit

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“strategy” part of advertising, that is the main message or meaning of the ad. Impact of

advertising measured through recall is not important because sometimes the ad gets

registered in the mind, but then receded to the subconscious mind, which comes forth at

the Point Of Purchase. Only the end effects are necessary and not the intermediate ones.

Aad (Attitude towards the ad): This school of thought is concerned only with the Recall,

Recognition and likability of an ad. This is the Qualitative aspect of advertising, where ad

must have an initial Impact so strong that it can be recalled or recognized by the viewer.

Not only this, it must also have a factor of liking for the ad. It is only when the viewer

will like the ad and feel good about it, that positive attitude can be generated for the

brand. After the release of an ad, the first question that the followers of this school of

thought ask is about the awareness and attention generated in the market about the ad.

High awareness and attention for an ad will trifle to the brand. This school is concerned

with the “Creative” aspect of advertising. Ogilvy was also to a great extent a follower (or

rather leader) of this school when as he laid down innumerable laws of writing copy and

grabbing that one second attention of a consumer.

Two important studies conducted in this field are:

1. Copy Research Validity Project or CRVP study reporting likability to be the best predictor of advertising success, as reported in Admap, 1990)18

2. Du Plessis had presented a paper in 1988 on a study demonstrating relationship

between likability of a commercial and its recall among consumers. (The result is

based on 8000 commercials, and Tracked Recall.)

Fig 4.2: A relationship between the likeability and recall of a commercial

i

.

1 B tll1 1 1I.IKAIIII.h "

.Source: Plessis, Du (1984): “Recognition versus Recall ", Journal of Advertising Research, May/June

IB Plessis. I)u (1984): "Recognition versus Recall", Journal of Advertising Research, May/June 1994

191

Anti-Recall Lobby : A mention of the anti-recall lobby is also a must at this stage.

There is no doubt that “recall” is not a panacea and cannot be used for all products,

measuring all objectives of advertising and different markets. But when compared

with other measures like recognition, recall has been preferred by researchers and

planners due to certain facts like:

• Krugman had pointed out in 1977 that Recall will give lower measures than

Recognition. When asked to recognize an ad by showing a picture or giving some

cue, the awareness will obviously be high than unaided recall.

• In 1988 Singh, Rothschild, and Churchill had calculated a “Forgetting rate” over a

six weeks period that is measured by recognition and not recall.

All these measures of advertising effectiveness are memory measures:

• Recall, recognition, persuasion, likability etc are all based on human memory

system, and how inputs are received by the mind, stored, processed and retrieved.

However all of them give different scores. It depends on the planner, the objective

of the study and nature of the products as to which measure is most suitable in

which situation.

• Researches in consumer behavior have divided the brain in right and left-brain.

Both the parts of the brain perform different functions. There are a few concepts

that we would like to touch upon in this context:

o Short Term Memory and Long Term Memory processing. When the brain is

exposed to a stimulus, it first enters the short term memory and then goes to

the long term memory system, and this procedure governs how we see, store

and process most stimuli around us.

o Supervisory Attentional System: this system is in operation when the brain is

multi-tasking. This system will divert attention from task to another.

A study as recent as in 2002, undertaken by Robert Heath19 is also based on Hierarchy of

effects and supports (he Aad school of thought.

1' I loath. Robert (2002): "I low the best ads work”. Admap April 2002

192

• Robert Heath introduced a concept called “stickiness”, which means an ad has to be

so attention grabbing, attractive and appealing and that it stays in the mind for long,

i.e. just sticks there. The creative execution of the as has to create stickiness.

• As most ads are seen at “Z,ovi' involvement processing" _level, where the consumer is

doing something else while watching TV, reading newspaper, or walking on the road.

In order that the consumer’s attention is grabbed, the ad has to be ‘sticky’.

• Even in 2002, the basis of understanding is the hierarchy of effects. It only when

awareness happens that recall will happen, and only recall is a precursor to persuasion

in advertising.

• There is a concept called implicit memory - where the viewer does not process

information but just registers it/stores it in mind to be retrieved later. If the objective

that the consumer learns through advertising is to be met, then the ad must first

register in this implicit memory.

The author through his research found out a positive co-relation between implicit learning

and product liking that is an ad recalled/recognized had higher liking (Recall the study of

Du Plessis that we explained earlier under Aad school of thought.). He further says that

implicit learning at LIP will happen with “sticky” advertising alone.

However, to move further in the hierarchy, a positive behavior has to occur and for that

advertising needs to work both at LIP and HIP. This means that an ad needs to work not

only when the consumer is in a low processing mode, say watching an ad on TV, but also

when he is in a high processing mode, say in a retail shop. The ad will stick in the implicit

memory, move on to the long-term memory and then be retrieved when the consumer is

seeking product information or is making a purchase.

There are so many views, opinions and research studies in the advertising literature done

on various measures of advertising, on how advertising gets stored in and retrieved from

the memory, on what are the best ways of measuring advertising effectiveness, etc., that

the reader is bound to get confused as to which is the best theory. As an answer to this question, wc would like to quote Du Plessis20

Plessis, Du (1994): Opcil193

“It is not an issue of recognition vs recall, as much as this is not an issue of all

these measures vs Persuasion or any of these vs likability. There is no one number

measure in advertising. One must understand what each measure is attempting to

measure, and also....what one should typically expect from the measures under

the circumstances...."

4.7.5 Low-Involvement Hierarchy Models

The main alternative to the persuasive approach is Cognition- -^Experience— -^Affect

(CEA), though “cognition” may mean no more than passing awareness in categories in

which the consumer has low involvement. Ehrenberg’s awareness-->trial~

->reinforcement model is typical of this class of models and suggests that product

preferences are formed after an initial trial. In low-involvement hierarchies, product

experience is the dominant factor and, and advertising reinforces existing habit, frames

experience and defends the brand’s franchise. In our notation, these experiences, habits,

and recollections are collectively termed “experience”. This category is a low-

involvement hierarchy, because it is associated with the routinized choice behavior more

likely to occur in low-involvement situations.

Following are the implications of the advertising-experience interaction in this model:

• Empirical applications suggest that product usage experience has a greater impact on

beliefs, attitude formation, and choice than advertising, which instead reinforces

habits of frames usage experience.

• Advertising tends to mitigate a negative trial effect when it precedes trial but has no

impact on beliefs and attitudes when trial is positive. When exposure precedes usage

experience advertising is relatively more effective. Both empirical results suggest that

advertising’s framing effect is more persistent when it precedes usage experience or

that advertising has a predictive framing effect.

• Advertising’s framing effect is stronger when the product category is ambiguous i.e

when quality is hard to determine. To the extent that high experience groups

(attributes) can be categorized as ambiguous. This result is in accordance with the

cognitive information conclusion on advertising effectiveness for search and

experience goods (attributes).

194

4.7.6 Integrative Models

In this class of models, different hierarchies of C (Cognition), A (Affect), and E

(Experience) are assumed, depending on the context in which advertising operates. For

example, product category and level of involvement may determine the order of effects.

In some of these models, context also may determine the strength of each effect.

The FCB grid uses involvement (high/low) and think/feel (the dominant consumer

motivator) as the two dimensions for classifying product categories. The type of

involvement used by the FCB grid is therefore category involvement and not brand,

personal, or situational involvement. The primary grid validation study was conducted in

United States among 1800 consumers acrosss250 products. It was then extended to more

than 20,000 interviews in 23 countries. The FCB study carried the operationalization of

involvement from laboratory to survey.

The managerial implication was that advertising should be designed according to the

quadrant in which the product category belonged. Frequently purchased packaged goods,

for example, were likely to be low involvement and affect motivated.

McWilliam verifies that involvement was determined by category, not by brand. Rossiter

and Percy suggest a development of the FCB grid. The Rossiter-Percy grid uses

awareness as a necessary condition for the effectiveness of advertising and replaces the

think/feel dimension with a more directly motivational one

(informational/transformational). They also distinguish between product category and

brand choices and prescribe advertising tactics that fit the cells of the grid, as defined by

involvement and motivation.

The various integrative models are as follows:

• Elaboration Likelihood Model

• Advertising Response Model

• FCB Grid

• Rossiter - Percy Grid

195

Elaboration Likelihood Model:

The Elaboration Likelihood Model claims that there are two paths to persuasion: the

central path and the peripheral path.

Fig 4.3: ELM Model framework

Persuasive c ommunic ation

yen>AL

Motivated to process?

personal relevance, need for cognition etc

ye*

Ability to process?

distraction; repetition comprehensibility etc

y*" J#

Peripheral attitude shift

(attitude is relatively temporary susceptible and unpredictive)

-----------------3K----------------ye*

Peripheral cue present?

* (positive / negative affect; attractive / expert source number of arguments etc etc )

neutral thoughts J or no cognitive change

Nature of cognitive processing(do favourable, unfavourable or neutral thoughts predominate?)

Cognitive structure change?

Retain or regain initial

attitude

(are new cognitions adopted and stored in memory?)

r* -Jf HCentral positive or negative attitude change

Attitude is relatively enduring, resistant and predictive of behaviour

Source: Richard Li. Petty. John T. Cacioppo and David Schumann, (1983): "Central & Peripheral Routes to Advertising EITcctiveness: The Moderating Role of Involvement,” Journal of Consumer Research, 10, Sontemher 19Rt RS-Urt

The central path is most appropriately used when the receiver is motivated to think about

the message and has the ability to think about the message. If the person cares about the

issue and has access to the message with a minimum of distraction, then that person will

elaborate on the message. Lasting persuasion is likely if the receiver thinks, or rehearses,

favorable thoughts about the message. A boomerang effect (moving away from the

advocated position) is likely to occur if the subject rehearses unfavorable thoughts about

the message. If the message is ambiguous but pro-attitudinal (in line with the receiver's196

attitudes) then persuasion is likely. If the message is ambiguous but counter-attitudinal

then a boomerang effect is likely.

If the message is ambiguous but attitudinally neutral (with respect to the receiver) or if

the receiver is unable or not motivated to listen to the message then the receiver will look

for a peripheral cue. Peripheral cues include such communication strategies as trying to

associate the advocated position with things the receiver already thinks postively towards

(e.g., food, money, sex), using an expert appeal, and attempting a contrast effect where

the advocated position is presented after several other positions, which the receiver

despises, have been presented. If the peripheral cue association is accepted then there may

be a temporary attitude change and possibly future elaboration. If the peripheral cue

association is not accepted, or if it is not present, then the person retains the attitude

initially held.

If the receiver is motivated and able to elaborate on the message and if there are

compelling arguments to use, then the central route to persuasion should be used. If the

receiver is unlikely to elaborate the message, or if the available arguments are weak, then

the peripheral route to persuasion should be used.

Advertising Response Model:

Fig 4.4: Advertising Response Model

Source: Mehta Abhilasha (1994):“I low Advertising Response Modeling (ARM) can increase Advertising F.ITecliveness”, Journal of Advertising Research, May / June

197

Abhilasha Mehta21 states, based on past research that an ad must break through the clutter

and gain attention. If the advertising has succeeded in doing that, the processing occurs

along one or both of two routes of processing: central and peripheral. During the central

processing, the focus is on product and/or brand related information; during peripheral

processing, issues related to the ad or commercial are more dominant.

Involvement levels are expected to influence the processing route: under high

involvement, respondents process information via a central route by elaborating on the

brand related information. Under the low involvement conditions, subjects typically rely

on available peripheral cues such as music, spokesperson, etc.

Central processing directly leads to brand attitude which in turn, influences buying

interest, buying intention. Peripheral cues may influence brand attitude as well. Attitudes

formed or changed, as a result of central processing are apt to be more permanent and

resistant to change. Peripheral processing leads to attitude or ad liking which, in turn may

influence brand attitude as well as buying interest. Ad attitude may be influenced by

message related issues as well. It has been found that when advertising-execution

involvement is high and advertising message involvement is low, peripheral antecedents

or ad attitude would be mostly operating. Under these conditions, ad attitude is dominant

in influencing brand attitude and the influence of message related factors on brand

attitude may be minimal. Attitudes formed or changed due to peripheral processing tends

to be more temporary in nature and may be lost as the peripheral cues influencing the

attitudes cease to be present. It may be necessary to reinforce the relationship between the

peripheral cues and the brand by repeated exposure of the same or similar advertising.

Further it has been suggested that in cases of established brands, brand attitude may

influence ad attitude.

The distinction between central and peripheral route processing is helpful in evaluating

advertising performance. By operationalizing the former as variables related to the

product/brand or other message related issues, and the latte, as those related to the

creative executional aspects, it is possible to identify specially the areas of strengths and

weaknesses in the advertising. Further even though simultaneous processing of the two

21 Mehta Abhilasha (1994): "How Advertising Response Modeling (ARM) can increase Advertising Hffectiveness", Journal of Advertising Research, May / June

198

routes occurs most of the time, one of the two routes can be expected to be dominant.

Establishing the dominant route should be useful since the consequences of each

processing route in terms of the stability of the resulting attitudes are different.

Case Study: Celebrity Advertising

Abhilasha Mehta has used a case study to illustrate the working of this model. A well-

known retailer used a new celebrity to endorse a line of clothing in an attempt to

influence the image. It was hoped that association with a young, well-known, attractive

actress would persuade consumers. The marketing communications objectives were to

influence consumers via use of the celebrity to purchase the product.

Procedure: to test the influence of the celebrity endorser on advertising effectiveness, an

experimental study was designed. Two commercials, similar in message and execution

for the same brand, were prepared. The only difference between the two was in the

model/source endorsing the product, in one version, the proposed celebrity was used,

while in the other an unknown professional model was used. The message was identical

in the two commercials. Half of the sample saw the celebrity ad and the other half saw the

non-celebrity ad.

Measures: in line with the objectives of the research, persuasion and advertising

processing measures were taken to study the influence of the celebrity in the commercial.

Multiple measures of persuasion were used including commercial attitude, brand attitude

and buying intentions. Ratings for the commercial attitude and brand attitude were

measured on three 9-point semantic differential scales, averaged to yield an overall score

for each variable. Intention to buy was measured on a 4-point rating scale, ranging from

“very likely to buy” to “not at all likely to buy”. The advertising communication

processing activity was measured through writing down the thoughts and feelings

(cognitive responses) elicited during exposure to the commercials. These responses were

then categorized as source/model related (dealing with the personal attributes of the

source /model, past connections and endorsements), ad-execution related (those dealing

with style, idea, audio, production), and brand/product related (product attributes,

benefits, past experiences with the product), mean number of thoughts per category were

computed for analysis. A quantitative value score was computed for each category based

on respondents indication oflevcl of importance and favourability of the response.199

Results: No significant differences were found in the measures of persuasion between the

viewers of the celebrity and non-celebrity commercials, there were differences in the

cognitive responses generated during commercial exposure for the two groups. While the

celebrity commercial viewers focused more on the star in the commercial, in the non-

celebrity condition consumers concentrated more on the product and brand featured.

Application of ARM showed that the two commercials, celebrity and non-celebrity, were

processed differently by the viewers. Source/model related thoughts influenced

persuasion in the celebrity case but not in the non-celebrity commercial. Further,

commercial attitude had no influence on brand attitudes or buying intentions in the non­

celebrity group, but it was an important factor in the celebrity group. These findings

helped understand the dynamics of the two commercials, and the implications for the

effects the advertising is producing became clearer for decision making.

Table 4.7.6(a)

Persuasion and communication processing results for celebrity and non-celebritycommercials

mean ratingsMeasures Celebrity Non-celebrity t-test significance level

Persuasion measuresbrand attitude 3.56 4.04 0.2commercial attitude 4.13 3.54 0.15buying intention 1.38 1.2 0.08

no. of cognitive responcesCommunication processingsource/model related 3.11 1.16 0.001ad-execution related 0.53 1.42 0.01product/brand related 2.4 3.48 0.001

Persuasion: No difference between celebrity and non-celebrity groups was found for the

persuasion dependent variables measured after commercial exposure. Means were

generally low for all variables as shown in the table above. It can be concluded from the

results that there was no difference in the performance of these two commercials.

Communication Processing: there were however differences in the two groups for the

number and cognitive responses generated within each category. The celebrity

commercial viewers had more thoughts regarding the celebrity source while in the non­

celebrity group other thoughts were more frequent. Celebrity commercial viewers200

generated significantly more source/model-related thoughts than non-celebrity viewers,

who generated significantly more: product related and ad related thoughts. It is important

to identify the relationship that these thoughts have with the measures of persuasion.

ARM was used for the purpose.

ARM Results: The results of the modeling procedure revealed differences in the way the

different types of thoughts influenced the persuasion measures in the two commercials.

Fig 4.5: ARM results - commercials with celebrity

Source: Mehta Abhilasha (1994): “How Advertising Response Modeling (ARM) can increase Advertising Effectiveness”. Journal of Advertising Research. Mav / June

201

Fig 4.6: ARM results - commercials without celebrities

Non-Celebrity Commercial

Source: Mehta Abhilasha (1994): “How Advertising Response Modeling (ARM) can increase Advertisina Effectiveness”. Journal of Advertisina Research. Mav / June

The above two figures make it clear that source related thoughts significantly influenced

commercial attitude which, in turn, influenced brand attitudes only in the celebrity ad

condition. Product/brand related thoughts influenced brand attitudes directly in the non­

celebrity condition but only indirectly through its influence on commercial liking in the

celebrity commercial. Peripheral cues had no direct or indirect influence on intention to

buy in the non-celebrity condition.

Implications: It is clear from the results of ARM that even though no significant

differences were found for the persuasion measures between the celebrity and non-

celebrity commercials, the processing activity was different for the two, which needs to

be taken into account when making decisions regarding the advertising. The finding that

peripheral processing is dominant in the celebrity condition has two important

implications for fulfilling the marketing objectives set for the commercial.

• It is important that the celebrities themselves, and their use in the ad, generate positive

thoughts since they would be mainly responsible in influencing persuasion.

202

• Since product related thoughts are few and do not seem to be influencing persuasion

directly in the celebrity condition, there needs to be some was that the importance of

the product is brought back into focus.

The FCB Grid:

In order to provide a structure that will integrate the traditional theories and LEARN-

FEEL-DO hierarchy models with consumer involvement a new FCB approach to advertising strategy was made. The FCB Grid22 uses involvement (high-low) and

think/feel as the two dimensions for classifying product categories. This classification

suggests that purchase decisions are different when thinking is mostly involved and others

are dominantly involved with feeling. In addition, different situations also exist, resulting

in decision-making processes, which require either more or less involvement. The product

category matrix is fabricated using these two dimensions. Vaughn indicates that the

horizontal side of the matrix is based on the hypothesis that over time there is

Fig 4.7: FCB Grid

THINKING----------------------- ^ FEELING

HIGH

INV O LV E M E N T

▼

LVEMENT

CAR-HOUSE-FURN1SHINGS- NEW PRODUCTSMODEL LEARN-FEEL-DO

(Economic?)Possible Implication!TEST: Recall

Diagnostic*MEDIA: Lang Copy Format

Reflective Vehicles CREATIVE: Specific Information

Demonstration

j EWELRY-COSM ET1CS- FASHION APPAREL-MOTORCYCLES MODEL: FEEL-LEARN-DO

(Psychological?)Possible ImplicationsTEST: Attitude Change

Emotion ArousalMEDIA: Large Space

Image Specials CREATIVE: Exccutional

Impact

3. HABIT FORMATION (DOER 4. SELF-SATISFACTION (REACTOR)FOOD-HOUSEHOLD ITEMS C1GARETTES-LIQUOR-CAN DYMODEL: DO-LEARN-FEEL MODEL: DO-FEEL-LEARN

(Responsive?) (Social?)Possible Implications Possible ImplicationsTEST: Sales TEST: SalesMEDIA: Small Space Ads MEDIA: Billboards

10 Second I.D.s NewspapersRadio; POS POS

CREATIVE: Reminder CREATIVE: Attention

Source: Richard Vaughan (l986):”Ho\v Advertising Works: A Planning Model Revisited”, Journal of Advertisintt Research. I'eb/March 1986

203

consumers’ movement from thinking toward feeling. Also, Vaughn believes that high and

low involvement (the vertical side of the matrix) is also a continuum, proposing that high

involvement can decay to relatively low involvement over time.

Vaughn developed a planning model by pulling together the major theories of consumer

behavior and advertising to make the FCB Grid. Vaughn (1980) reviewed four traditional

theories of advertising effectiveness from which effects on marketing have been

noticeable. These four theories are Economic, Responsive, Psychological, and Social

theories. Each theory is applicable to the four quadrants in the FCB Grid

Four quadrants are developed in the matrix based on these two dimensions (involvement

and thinking/feeling) in the FCB Grid. The quadrants summarize four substantially major

goals for advertising strategy: "to be informative, affective, habit forming or to promote

self-satisfaction"" (Vaughn, 1980). The insight from Vaughn led to the conceptualization

of using a continuum of high involvement to low involvement, as well as a continuum of

thinking and feeling, in order to form a space where we can position the products relative

to each other.

Each quadrant can be explained as follows:

Quadrant 1 - High Involvement / Thinking Informative:

This quadrant represents a large need of consumers for information because of the

significance of the product; as a result, more thinking is required to make a purchase

decision. Major purchases such as a car, house, appliance, insurance, furnishings, and

almost any expensive new product; those which make consumers consider many factors

such as function, price and availability in making purchase decision, are classified in this

quadrant.

"Out of four traditional theories of advertising effectiveness, the Economic model may be

appropriate to this quadrant" (Vaughn, 1980). The Economic model is a theory

emphasizing a rational aspect of consumer who consciously considers functional cost-

utility information in a purchase decision. "The basic strategy model is the typical learn-

22 Richard Vaughan (l986):"How Advertising Works: A Planning Model Revisited", Journal cf Advertising Research, I'cb/Mareh 1986.

204

feel-do sequence where functional and salient information is designed to build consumer

attitudinal acceptance and subsequent purchase" (Vaughn, 1980). Advertising strategy

suggested by Vaughn is in long informative copy format and reflective, demanding that

media literally "gets through" with key points of consumer interest.

Quadrant 2 - High Involvement / Feeling Affective:

The purchase decision in quadrant 2 also has a high involvement level like quadrant 1;

however, the importance of specific information is less than that of an attitude or holistic

feeling toward a product. "The affective strategy is for highly involving and feeling

purchases, those more psychological products fulfilling self-esteem, subconscious, and

ego-related impulses requiring perhaps more emotional communication" (Vaughn, 1986).

Example of such products is jewelry, perfume, fashion apparel, motorcycles, and wine for

a dinner party.

The Psychological model is appropriate in this quadrant; that is, an unpredictable

consumer who buys compulsively is influenced by unconscious thoughts and indirect

emotions. This is feel-learn-do consumer process. "The strategy requires emotional

involvement on the part of the consumers, basically that they become a feeler about the

product" (Vaughn, 1980). For this type of product, the creative goal is executional impact

and media strategies calls for dramatic print exposure or image-focused broadcast

advertising.

Quadrant 3 - Low Involvement / Thinking Habit Formation:

In this area, consumers have minimal thought about the product and they have a tendency

to form buying habits for convenience. Therefore, advertising which can create and

reinforce habits of consumers is needed. "The habitual strategy is for those low

involvement and thinking products with such routinized consumer behavior that learning

occurs most often after exploratory trial buying" (Vaughn, 1986). Product examples are

paper products, household cleaners, gasoline, most food and staple packaged goods.

The Responsive theory - a habitual consumer conditioned to thoughtlessly buy through

rote, stimulus-response learning •• is suitable for this quadrant. The hierarchy model to this

quadrant is a do-learn-feel pattern. The purchase decision in this area does not require

consumer’s consideration about products. As time passes by, many ordinary products will205

be in the mature stage of the product cycle and progressively descend into this area. The

creative element for this strategy requires advertising to stimulate a reminder for the

product; therefore, consumers can continuously remember the habitual need for the

product. Implications for media are small space ads, point of purchase ads and radio, all

with the aim of high frequency.

Quadrant 4 - Low Involvement / Feeling Self Satisfaction:

This area is for those products that can be likened with "life’s little pleasures" (Vaughn,

1986); those that can satisfy personal tastes. Products such as cigarettes, liquor, candy,

movies or the decision to patronize a fast-food restaurant all appertain to this quadrant. A

do-feel-learn hierarchy effect is the consumer process for this area, and product

experience is a necessary part of the communication process.

This area is an application of the traditional Social theory: a compliant consumer who

continually adjusts purchases to satisfy cultural and group needs for conformity.

Advertising with imagery and consumer’s quick satisfaction from products are requisites.

As for creative strategy, consistent product imagery is needed. Billboards, point-of-sale,

and newspapers are recommended by Vaughn.

Rossiler-Percv Grid:John Rossiter and Larry Percy 23 offered an improvement on the FCB grid. A “thinking”

product could be purchased for one of several different “informational motives” that all

have to with the consumer’s desire to reduce certain negative feelings. Their grid is

described in figure 4.8.

Batra, Rajeev; Myers, John.G.; Aaker, David. A: •'Advertising Management'’ 5,h lid. Prentice Hall of India Pvt. Ltd, Y 1999

206

volvement

pfficient)

\yOfm&eeisio/rm: • ■

pttgh •®%VoIveniei»t F (search and F conviction h required

prior to purchase)

Fig 4.8: The Rossiter-Percy Grid

Informational Transformational(negative motivations) (positive motivations)

Typical product categories (brands may differ):• aspirin •Tight beer• detergent• routine industrial

Typical product categories (brands may differ):. candy • regular beer . fiction novels

products • Brand loyals• Roulinteed favorable

brand switchers

Typical product categories (brands may differj:

• microwave oven• insurance• home renovations• new industrial

Typical product categories {brands may differ):

• vacations.•fashion clothing• ears• corporate image

products» New category users• Experimental erroutinized

other-brand switchers• Other-brand loyals

Figure 9-3. The Roaaiter-Percy grid.Modified from Rossller. Percy, and Donovan, *A Belter Advertising Planning Grid,' Journal ot .Advertising Research (October/November 1991). pp. 11-21. © 1991 by the Advertising Research Foundation.

Source: Rossiter Percy, and Donovan, “ A Better Advertising Planning Grid,” Journal of Advertising Research (October/November 1991). dd. 11-21

Here, a product might be purchased either to remove a problem (in which case ads can

show anger turning into relief through using that brand), for problem avoidance (show

how fear changes to relaxation), or because of incomplete satisfaction with a prior

purchase (show disappointment giving way to optimism) and so on.

On the “feeling” side, where various “transformational motives” can apply consumers

seek to increase certain positive feelings. Thus, something being bought for sensory

gratification might be advertised emotionally by showing dullness changing to elation:

something being bought for a sense of achievement or mastery needs to show how

boredom can be changed to excitement through that brand purchase: and a p. oduct bought

for social approval needs to show how the consumer’s apprehension about social approval

can be changed into feeling flattered.

207

In the Rossiter Percy model the grid has four cells, with low and high involvement being

crossed with informational and transformational motives. In their view, ad in the lo-

involvement -informational quadrant need to focus on one or two key benefits, perhaps

exaggerating them enough to provoke a trial purchase, and use a simple problem solution

format, without being concerned about likability. Ads in the high involvement-

informational quadrant need convincing and logical brand claims, perhaps using

refutational or competitive formats. Ads in the low involvement-transformational cell

need a unique and authentic emotional benefit, delivered through a frequently repeated

likable ad that might use the “drama” format.

In the fourth high involvement-transformational cell, the Rossiter Percy model suggests

that an ad has to not simply be liked but also create a feeling of lifestyle identification

from the consumer, with some supportive hard information thrown in. Again high

repetition may be needed here. Ads for this fourth cell require appeals that show how the

brand can reflect or reinforce the deeper life values that the target consumer sees as part

of his or her “self’. Thus, the ad here, has to not only be likeable but must create a brand

image or personality that captures some deeper and richer meanings the consumer is

attempting to get closer to, by buying brands that have managed to associate themselves

with those cultural, symbolic meanings.

4,7.7 Hierarchy free models

Authors Demetrios and Tim Ambler found this to be the smallest category. This category

represents a more person-centred view of advertising. It discounts the persuasive view of

advertising and rational decision-making and suggests that advertising is part of the brand

totality. The example of New Coke beating the “real thing” in product tests (attribute

evaluation) but not in the marketplace (where the real thing is an established entity) is an

illustration of the value-added framework.

Anthromorphizing the brand and accommodating the consumer’s real world may help the

understanding of marketers and copywriters and clarify the brand advertising they are

creating. However, empirical validation of these models is experiential. Literature does

not reveal how these models work or how the effect of advertising can be measured. This

category includes the treatment of brands as myths and advertising as myth-making,208

which was sourced from anthropology and semiotics. Stem (1995) has also analysed

advertising from the standpoints of feminist literary and drama criticism.

Postpositivist/ postmodern researchers regard introspection and experiential learning as a

valid methodology, alongside the deductive tradition that underlies most other work.

There has been an ongoing debate between the various new “isms” and the traditionalists.

Much of this is philosophic; at the pragmatic level of how advertising works. Hence it can

be said that the postpositivists have broadened our understanding of how advertising

works, but not the depth.

Neuroscience indicates the brain receives and handles information in a parallel fashion.

Thus both cognitive and affective functions are performed independently. From the way

the brain processes advertising information, it would appear that the hierarchy of effects

concept is deeply flawed.

Here we will touch upon the following:

• Double Helix Model of Advertising

• Chlorophyll’s Model of Brand Connect

• Perception/Experience/Memory Model of Advertising

Double Helix Model of How Advertising Works'. The basic understanding of a Double

Helix model is that it is not a hierarchical model. It does not go by the rule that attention

is the first stage in ad processing, then follows interest and then desire and finally an

action.

The models of AIDA/DAGMAR/feel-learn-do have become redundant in their literal

sense today. The consumer is not rational enough or in the right frame of mind always to

go through all these stages methodically one by one. Some of the reasons for the

declining importance of these models could be the following:

- Message deliveries have become inconsistent. There is no single universal method

of delivering the millions of messages that consumers receive everyday. Each

message is linked with one another.

209

- Message retention is inhibited today due to clutter in advertising as well as wide

cultural differences.

- Cognitive dissonance has become important, and can result from a brand not

performing, a brand being involved in a controversy, another person’s bad

experience with the brand etc. Such dissonance will already put the customer in

some frame of mind and due to this, each exposure of ad for that brand will not

follow the step-by-step procedure of an AIDA model from beginning to end.

- There has been a gradual transition from passive (what advertising does to

consumer) to an active consumer (selective retention and perception). Today’s

consumer does not passively wait for stimulus to shift him from one stage to

another. In fact he himself jumps and skips in the entire hierarchy.

The Double Helix model also states that the effects of advertising can be measured only

in the long term within limited parameters of medium and message. Refer to the

following diagram.

Fig 4.9: Double Helix model for advertising processing

Figure 2 Ths AIOA Stages of tho Step Model Applied to tho Holix Model: AT ~ Attention. I « Interest, D Desire, AC « Action

Source: Hall. F. Bruce (2002): “ A New Model for Measuring Advertising Effectiveness”, Journal of Advertisine Research”. March/Aoril

- AIDA occurs within the strands of the model, however the stages do not follow

each other linearly. Exposure to advertising may lead the viewer into any of the

stages.

210

- Consumer may stay in one stage for just a second or indefinitely and will move on

only when compelling reasons are present.

- The process is not end-start process. Persuading consumers and keeping them

persuaded is a continuous process.

- There are Replication and adaptation effects. When alterations are made to the

advertising message/medium, the entire process does not begin all over, rather

new strands split, and the consumer adapts and learns from the past experience.

For example, brand extensions.

A distinction between the two kinds of models

Hierarchy-of-effects

• If a perceptual shift fails to induce a behavioral shift, the entire process starts all over again.

• Short term effects

• Each new ad is a distinct progression, the total effect is a sum of the individual progressions.

Double Helix Model

• Perceptual shift an uninterruptedprocess that continues until it brings about behavior change.

• Long term effects• A change in message/medium

may not start a new process but any stage depending on pastleaming/exposure.

Case Examples:

• Miller High Life Beer: The beer bottle is sleek and long, and has feminine

characteristics, but the brand has been successful in promoting it as a men’s beer. This

could have happened only over a period of time.

• IBM computers: IBM was able to transform the image of the company from one of

making humungous room-sized computers and mainframe; to one of making sleek

and tech-savvy laptops and palm tops. The new products of the company had their

customers placed not at the front end of the AIDA, but somewhere down. That is

because there are characteristics (images, associations) of the corporate brand that are

inherited by the new products of the company under the same name, just like a child

inherits characteristics from his parents.

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We can draw an implication from these two studies that brands are not built over night

and the success of branding efforts depends on degree that values are communicated over

an extended period of time

Chlorophyll’s “Brand Connect ”24: Chlorophyll, a brand consultancy in India has

proposed its own model of how advertising works. The special feature of this model is

that it takes into account cultural differences. The beginning of the connect between the

brand and the consumer is trying to understand the DNA. Just as the X and Y

chromosome are the basis of life, one can’t think of the brand DNA without taking the

consumer on board. These two strands are connected at all points of the system. This is

because iner-connectedness is much more in India than in the United States both due to

the fact that buying behavior here is a group activity as opposed to an individual activity

in the U.S and the public assessment of life in India, all of which affects brand choice.

Fig 4.10: Brand Connect model as adopted by Chlorophyll, India

brand consumer

Ecosphcre One

Ecosphcrc Two

Hgospherc One

Egosphcre Two

Source: Anand Halve, partner, chlorophyll brand consultancy, in a class interaction at Mudra Instutute of Communications. Ahmcdabad on 31“ August 2002.

'4 Anand Halve, partner, chlorophyll brand consultancy, in a class interaction at Mudra Instutute of Communications, Ahmcdabad on 31s1 August 2002.

212

The Perception/Experience /Memory Model of Advertising: Bruce F Hall25 has presented

a new theoretical framework of how advertising works. This is the result of recent

developments in neuroscience and psychology that are converging in a consistent view of

how consumers actually think and feel.

Typically models of consumer response to advertising use a response path that flows from

cognition to affect to behavior, in some cases cognition and affect operate separately on

behaviour. The weakness of these approaches is in the assumption that cognition plays a

primary role in consumer response. However the author holds that assumption is no

longer tenable in the light of recent developments in neuroscience and psychology.

’’Rational” cognitive processes are not the primary drivers of purchase behaviour through

which advertising operates. They are outcomes of a complex process of perception,

experience and memory- a process that is driven by primarily by emotions and feelings.

The model proposed by the author combines elements of an “integrative” model with a

reverse-hierarchical model, which can be described as A-B-C.

This model maps a process founded in three elements: perception, experience and

memory. The most important characteristics of this model are:

• Greatly reduced role of cognition; emotions, feelings, affect and experience

dominate cognition at every stage of the process.

• Perception is a dependent variable in the model, influenced by advertising and

experience as well as by the consumer’s priors.

• Multiple feedback loops connect advertising and perception at every stage of the

process.

25 Hall. F. Bruce (2002): “ A New Mode! for Measuring Advertising Effectiveness”, Journal of Advertising Research”, March/April

213

The model is illustrated as follow;

Fig 4.11: The Perceptiom/Experience/Memory model of advertising processing

PHASE

FUNCTION

EFFECT

Source: Hall. F. Bruce (2002): “ A New Model for Measuring Advertising Effectiveness”, Journal of Advertising Research”. March/Aoril

Phase 1: Pre-experience exposure

In the pre-experience phase, the critical function of advertising is to frame perception.

Framing has three effects on the consumer. The first is creating an expectation for the

brand, that is, to prompt the consumer to see it. Viewing an advertisement for a new

product or brand creates a perceptual prompt that brings the product into a particular

frame of reference. Without that frame of reference, nc meaningful perception will take

place.

Second, the pre-experience exposure creates anticipation. Examples are food advertising

(food advertisements are designed to make one feel hungry), life insurance advertising (it214

tries to make us anxious about the future and resolve that anxiety through insurance), car

advertisements (they try to give a feel of the driving experience). Each of these is trying

to create a sense of anticipation of a certain experience.

Third, pre-experience advertising may provide a rationale for the anticipation it generates.

This may be explicit (product features described in objective terms) or implicit benefit

that translates as an objective reason to buy.

Cognition, as “interpretation” enters the process only as a third-level effect, after the

advertising has created expectation and anticipation.

Phase 2: Enhancing experience

The next key phase in the process is to enhance experience. Advertising has been shown

experimentally to enhance sensory experience both when exposed to the consumer and,

when exposed afterward. Thus both pre and post-exposure flows into enhancing

experience.

In addition to sensory experience enhancement (which is experimentally validated), it

also enhances social experience in the case of service exchanges by creating a basis of

trust to build a relationship with the consumer.

Phase 3: Post- experience exposure

Post- experience exposure has the key function of organizing memory. It provides verbal,

visual and aural cues to enable the exposed audience to recall the advertisement, the

brand and the product.

Related to this is brand -related recall (stated separated from the above type of recall only

because it is a crucial element of all advertising).

Finally, post-experience exposure is also subject to “interpretation”. The advertisement

not only influences the consumer to feel that the sensory or social experience was a good

one, but it also provides reasons to believe that it was.

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4.8 A case example from advertising works 1026

Advertising Effectiveness Awards Cases 1998

Health Education Authority Drugs Education Campaign

Objective of the case:

The objective is to establish that advertising alone can bring about attitude change and a

subsequent behavior change.

Backeround of the case:

• During 1990s large number of young people (11-25 year old) had started using illegal

and dangerous drugs such a s Ecstacy, Speed and LSD for recreational purposes in the

United Kingdom.

• Taking drugs was not a counter-culture or rebellion, but had become a a majority

activity for all which..

□ Effects of these drugs (particularly Ecstacy) like increase in confidence,

sociability, mental acumen, attention, etc were described as “heaven sent” by the

takers. A new form of dance culture had emerged where large number of

youngsters would dance and take drugs.

□ There was this youth culture fortress that had been formed. Outside of the fortress

were the Doctors, police, Tabloids, parents, Government who were hostile to the

youth and inside of the fortress were the young people, their problems,

aspirations, and feelings.

36 Advertising Works 10, Case from the IPA Advertising Effectiveness Awards , Institute of Praetioncrs in Advertising 1998, edited by Nick Kendall, Oxfordshire: NTC Pub. Ltd, Y 1999

216

Problem was two fold:

Fig 4.12: Problem, identification in drug use - case study

Source: Advertising Works 10, Case from the IPA Advertising Effectiveness Awards, institute of Parishioners in Advertising 1998. edited bv Nick Kendall. Oxfordshire: NTC Pub. Ltd. Y 1999

Insight:

Young people decided for themselves whether or not to take drugs. Problem was not of

pressure from peers or other groups , but one of weighing pros and cons by themselves, in

which benefits accruing from taking drugs were much more than the costs of not taking.

Communication task at hand (1995-1998)

• The communication objective that was realized was that the young people were to be

treated like adults/equals and use of parent-child attitude, as had been used in earlier

campaigns (Say ‘No’ to drugs), could backfire.

• The aim was to get into the youth fortress, provide the young people with all the facts

regarding health risks associated with these drugs and dispel existing myths. It had

been found out that one of the most important concerns of these young people was

health, however they lacked information. This was to be achieved by facilitating in

making their own better informed decisions, reappraise their attitude and moderate

behavior.

217

Fig 4.13: A hypothesis on how advertising worked for drug use campaign

Source: Advertising Works 10, Case from the IPA Advertising Effectiveness Awards , Institute of Practioners in Advertisins 1998. edited bv Nick Kendall. Oxfordshire: NIC Pub. Ltd. Y 1999

Results of the campaign:

• There were fewer young people trying drugs.

• There were fewer people planning to use drugs.

• More drug users quitting.

• Drug users were now better able to limit risks in light of the information

disseminated.

• Some Bonus effects were also achieved by the campaign like teachers had started

using the material of the campaign in their respective universities, the task of drug

educators had become easy, black money was now being converted into white as it

was now spent on better things in life, there was also reduction in lost working days.

• It was found out that Advertising played the lead role in behavior modification

• The facts that pointed out in support of this statement were:

- Activities linked to drug use like dance culture, going to clubs, partying etc. had not

changed. So there was a decline in drug usage in absence of decline in incidence of

these activities.

- There were certain market forces like falling prices of drugs and their increased

availability that should have lead to an increase in drug consumption, but surprisingly did

not.

21 X

- The quality of drugs was also consistent, and hence declining quality was also a

reason ruled out leading to a decline in drug consumption.

Implications:

• Awareness leads to attitude that affects behavior.

• Recall, recognition, persuasion and credibility still the most common measures of

advertising effectiveness.

• There has been an increasing focus to study the longer as well as broader effects of

advertising

• This case is a classic example of understanding learning type responses v/s teaching

type responses

• It demonstrates the use of both low-involvement processing and high-involvement

processing.

• The case also touches upon issues of effective frequency and consistency in medium and

message.

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4.8 Chapter Bibliography

Books & Journals

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Buzzell, R.D. (1964), “Predicting short term changes in market share as a function of advertising strategy”, Journal of Marketing Research, Vol 1(3), pp.27-31

Demetrios Vakratsas and Tim Ambler (1999), “How Advertising Works: What Do We Really Know?”, Journal of Marketing, Vol.63,

George Gallup (1974), “How Advertising Works”, Journal of Advertising Research, Volume 14 (3), June.

Haley, R.I., and A.L. Baldinger (1991), “The ARF copy research validity project”,Journal of Advertising Research, Vol 31 (2 ), pp.l 1-32

Hall. F. Bruce (2002), “ A New Model for Measuring Advertising Effectiveness”, Journal of Advertising Research, March/April

Heath, Robert (2002), “How the best ads work”, Admap, April

Holbert, Neil (1972), “Key issues in Advertising Research”, Journal of Advertising Research, October

Mehta Abhilasha (1994), “How Advertising Response Modeling (ARM) can increase Advertising Effectiveness”, Journal of Advertising Research, May / June

Plessis, Du (1984), “Recognition versus Recall”, Journal of Advertising Research, May/June.

Richard Vaughan, (1980), ”How Advertising Works: A Planning Model”, Journal of Advertising Research, Vol 20 (5).

Richard Vaughan (1986), ”How Advertising Works: A Planning Model Revisited”, Journal of Advertising Research, Feb/March.

Stewart, D.W., and D.H. Furse (1984), “Analysis of the impact of executional performance”. Journal of Advertising Research, Vol 24 (6), pp.23-26

220

Walsink, Brian and L. Ray, Michael, (1992), “Estimating an Advertisement’s impact on one’s consumption of a brand", Journal of Advertising Research, May/June.

Trade Publications

The FTSE’s Bright, the FTSE’s Orange, Charles Channon Award Winner, Advertising Works 10 (1998): 33-60.

Advertising Works 10, Case from the IPA Advertising Effectiveness Awards , Institute of Practioners in Advertising 1998, edited by Nick Kendall, Oxfordshire: NTC Pub. Ltd, Y 1999

Private Sources

Anand Halve, partner, chlorophyll brand consultancy, in a class interaction at Mudra Instutute of Communications, Ahmedabad on 31st August 2002.

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