September 29, 2010

Control Over Choice

Throughout the history of advertising, its power of influence on people's attitudes and behavior has been questioned. In the 1930s behaviorists introduced the Hypodermic Needle Model (also known as Magic Bullet Theory), a theory suggesting that an intended message is directly received and wholly accepted by the receiver. As a result, media (and, consequentially, advertising) was believed to have direct, immediate and powerful effect on the audiences. This theory was majorly disregarded as not based on empirical research. The later research has found that media do not have direct influence on audiences, instead their opinions and choices are mediated by interpersonal communication (Two-Step Flow Model) and selective exposure play crucial role in our perception of information.

But recent studies have proved that advertisers still have  a simple and effective tool for enforcing buying behavior.

Researchers from Northwestern University in their Journal Of Consumer Research study demonstrate how advertisements can be manipulated to cause overemphasis of a particular feature and increase the likelihood that a certain product is chosen.

“By showing the impact of perceptual focus on consumer preferences, this research demonstrates that in addition to the many overt ways companies can draw attention to products, the visual arrangement of alternatives can also have a significant influence on their relative choice shares” (Hamilton, Hong, & Chernev, 2007).

A series of experiment has shown, in particular how grouping together similar objects can increase the likeliness of choosing the different object put in the set.
Imagine that participants have to choose between sofa A, which has softer cushions, and sofa B, which is more durable. In this experiment sofa A will be picked by 42.3% of the participants.

However, if sofas A and B are presented together with three other sofas, all showing small cushion softness, 77.4% of the informants will choose sofa A. 
One of the exhibits is different, unique (how the marketers like to boast about many many products and services), which it makes it more desirable – a phenomenon the authors call “perceptual focus effect.”




“The research presented in this article has practical implications for manufacturers and retailers in determining the size and composition of their product assortments,” the authors state in the conclusion. “In particular, when designing product displays, in both print and electronic media, companies need to be aware of the potential impact of the visual characteristics of choice alternatives on consumer preferences.”
REFERENCES
Hamilton, R., Hong, J., Chernev, A. (2007). Perceptual Focus Effects in Choice. In Journal of consumer research. Vol. 34.
Hypodermic Needle Model (n.d.). In Wikipedia. Retrieved from http://en.wikipedia.org/wiki/Hypodermic_needle_model
Katz, E.(1957). The Two-Step Flow of Communication: An Up-To-Date Report on an Hypothesis. In The Public opinion quarterly, Vol. 21, No.1, 61-78.

September 24, 2010

Perceived vs. Real Values In Advertising

"How many problems of life can actually be solved by tinkering with perception rather than tedious hard-working and messy business of actually trying to change reality?"

Rory Sutherland
VALUES in advertising.
Perceived. Intangible. Subjective. Badge.


Rory Sutherland Vice Chairman of Ogilvy Group, talks about how advertising can add value to product by changing  perceptions, rather than the product itself.  In a funny humorous way he is trying to assert that a change in perceived value can be just as satisfying as what we consider real value.








The main points he states:


1. All values are subjective.
2. Persuasion is often better than compulsion.
3. The interface largely determines the behavior.
4. Intangible values replace actual/material values. 


Rory Sutherland: Life lessons from an ad man | Video on TED.com

September 15, 2010

86 TV's, Or What Is It All About



Advertising is a powerful tool and is everyday life.
It is magic, and it is a giant money machine.
It is annoying, charming, inspiring - at the same time.
It is a monster.
It makes you smile.
It mesmerizes and drives you nuts.



But no matter what we think of it, it is an inseparable part of our culture. And culture, in turn, is embedded in all the advertisements we see, hear and encounter.


In this blog I want to look at how people perceive advertising, how these perceptions are affected by our cultural norms, values and how these attitudes influence advertising effectiveness. 



The name comes from a song by Esthetic Education and is supposed to symbolize the power of advertising and how we buy into it. If we want to. Or when it wants us too?
The actual web address is taken from a song by I Am Kloot - 86 TV's - like 86 mirrors we look in every day to see millions reflections of ourselves. It is meant to refer to the ubiquity of advertising in our life, and all the clutter we go through.


The intricate relationship between advertising and culture - this ephemeral symbiotic twist in the middle of postmodern chaos is the question I am going to investigate.