CIE Psychology A-level

Psychology and
Consumer Behaviour
Notes

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Psychology of Consumer
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Part A: The Physical Environment

Retail/Leisure Environment Design

• According to Turley and Milliman (2000), retail environments can either be enticing (approach
behaviours) or alienating (avoidance behaviours). The likelihood that a customer will make
purchases depends on external variables, interior variables, layout and design, point of
purchase, decoration and human variables.
• Music is a particularly important general interior variable, alongside more recent research
focusing on the role of aroma. Lighting is also associated with the store’s image i.e. the
customer’s perception of the store.
• Layout can be designed strategically to highlight the most important, newest or expensive
products, alongside increasing the likelihood of making unplanned purchases. Product displays
which are attractive also increase this likelihood, and the area denoted to each item signifies its
importance.

• Through the use of a quasi-experiment, Finlay et al (2006) investigated the effects of general
interior variables on casino customers, who were exposed to a casino with an emphasis on
nature and relaxation (Kranes), or with a greater focus on the machines (Friedman). The
researchers demonstrated that Kranes’ layout evoked more feelings of relaxation and intimacy,
which translated into higher sales and more games being played by the customers.

• Vrechopolous et al (2004) suggests that the design of a virtual store is just as important as a
real-life store, and measured the effects of using three different layouts: free-form, grid and
racetrack, using 120 participants from the UK and Greece who were given £20 to spend in the
online stores. The findings demonstrated that a free-form layout was the most popular amongst
customers and that it made the shopping experience more ‘fun’, whilst the traditional grid
proved to be less effective. This suggests that organisations need to be flexible in their
approach to store design in order to maximise profitability.

Evaluation

1. Since Turley and Milliman have identified many variables which may impact upon the
shopping experience, this suggests that companies may make more informed choices about
new store layouts and strategic designs in order to maximise profitability.
2. However, Finlay’s use of a quasi-experiment may mean that he incorrectly drew causal
conclusions. This is because this experimental design lacks the highly-controlled conditions
associated with a laboratory experiment, so the biasing effects of extraneous and
confounding variables were not controlled for.
3. The three theories above all have real-life, practical applications, through the improvement of
retail and leisure deisgns, which will translate into increased sales and an improved company
image.

Sound and Consumer Behaviour

• North et al (2003) demonstrated that classical music may produce the greatest profitability of a
restaurant, as indicated by the mean amount of
money each customer spent over a three-week
period, as opposed to pop music and non music.
This was supported by statistical analyses, showing
that the classical music group also spent
significantly more, on average, on starters and
coffee compared to the other experimental and
control groups. This may be because the classical
music was in sync with the other aspects of the
expensive restaurant e.g. styling and decor.
• Classical music can also increase average
spending when such music is not in line or
‘synergistic’ with the other aspects of the dining
area, as demonstrated by North and Hargreaves
(1998) in a school canteen.

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• Using a field experiment, Gueguen et al (2007) investigated the effects of music played in open-
air retail environments, such as a stall. The researchers found that customers stayed at the stall
for an average of 1.55 more minutes when music was played, compared to when there was no
music, and also bought on average 8% more goods. This may be due to music distorting our
perception of time.

• Woods et al (2011), using a laboratory experiment, found that sound has a significant effect on
an individual’s perception of the taste of food! For example, there’s a negative correlation
between the increasing volume of the music used in the retail setting and the decreasing rates
of reporting sweetness and saltiness, showing that tastes which are usually unaffected by
sound can be adversely affected when poised within certain retail environments. This was also
accompanied by increased ratings of the crunchiness of food when there was louder music
being played.

Evaluation

1. There are important real-life applications associated with an increased understanding of the
influence of music on retail environments. This means that companies can make more
informed choices about which music to include, according to the other aspects of their
environment and the product they are selling.
2. The limitations of such studies must also be considered, especially the rarity of music being
played in open-plan areas, and so this is a particular limitation of Gueguen et al’s work.
3. There are methodological limitations associated with the use of field and quasi experiments.
The lack of highly controlled conditions means that the findings are likely to be affected by the
bias of uncontrolled confounding and extraneous variables, which means that causal
conclusions may be incorrectly drawn.

Lighting, Colour and Smell

• According to Mehrabian and Russel (1974), aromas can intervene between cues in the
environment and our consequent behaviour, thus being able to shape our behaviour in this way
in a positive way, if the aromas have been selected carefully.
• According to Lazarus’ (1966) cognition-emotion model, scents can impact upon the emotions
which customers feel when they enter the store and their perception of this environment.
• Kutlu et al (2013) found that out of 121 participants (the overwhelming majority being female),
lighting colour schemes were important to 75% of respondents, giving the majority of them a
sense of stylishness and luxury. This supports the idea that both lighting and colour can be used
strategically to increase sales.
• In a field experiment conducted by Chebat and Michon (2003) into the effects of odor on the
emotional arousal of customers in a retail environment, the researchers found that scent has a
significant influence on the customer’s perception of the store, and particularly if this is an
ambient scent, resulting in increased store sales and profitability.
Evaluation

1. The use of field experiments by Kutlu and Chebat and Michon increase the ecological validity
of their findings because behaviour was studied in the environment within which it would
usually occur, and so this minimises the risk of demand characteristics and participant
reactivity biasing the findings.
2. However, the lack of control over confounding and extraneous variables means a reduction in
the validity of the conclusions drawn because it is increasingly difficult to draw a reliable
‘cause and effect' relationship between two variables/outcomes.
3. The studies above may have breached the BPS ethical guideline of privacy. Although most
shoppers would not object to having their behaviour monitored whilst shopping, the amount of
money they spend and on what they spend it is very much private and may be a cause of
embarassment or modesty for some.
Part B: The Psychological Environment

Environmental Influences on Consumers

• Mackay and Olshavsky (1975) measured the effects of cognitive maps using 78 supermarket
shoppers from Indiana, who had to rate their local 8 supermarkets according to price, distance,
size of the store and quality. After respondents drew a map of the location of these

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supermarkets relative to their home or workplace, the researchers found that preference had a
greater effect on map-drawing compared to the actual behaviour displayed by each participant.
• Machleit et al (2000) studied the effects of crowding in retail environments and found that
overcrowding leads to an increased frequency of negative emotions on the part of the
consumer, lower levels of satisfaction and also lower levels of the individual’s expectations of
the shop. These results can be interpreted with the consideration that different people have
different tolerances for crowding, and so will be affected by different stress levels. This effect is
weaker in discount-stores, and stronger in luxury brands.

• Gil et al (2009) studied shopper movement patterns in a supermarket, using a quasi-experiment

where the researchers did not manipulate any of the variables. Shoppers were tagged so they
could be identified on CCTV, and then were
interviewed by the researchers on topics such
as the amount of money they’d spent and on
which items. The researchers concluded that
there were 5 different types of shopping
movement patterns: the raider, explorer, tourist,
native and the specialist.

Evaluation

1. Mackay and Olshavsky conducted their

research as part of a laboratory experiment.
This has the advantage of maintaining highly-
controlled conditions, which minimises the
biasing effects of extraneous and confounding
variables, which increases the validity of the
conclusions drawn.
2. Gil et al used a quasi-experiment, which has the benefit of producing findings with high
ecological validity. This is because there is no manipulation of the independent variable (and
so reduces the effects of participant reactivity and researcher bias) and behaviour is recorded
in the environment within which it usually occurs, thus minimising the effects of demand
characteristics.
3. There are real-life applications associated with an improved understanding of cognitive maps
and how these can affect the consumer’s perception of the overall quality of the brand.
Further research can be conducted into this area to improve understanding and design stores
in accordance with customer’s cognitive maps. The study of shopper movement patterns can
be utilised by stores to increase ‘impulse buys’, whereby the customer is guided towards
specific areas of the store and has an array of products to choose from when waiting at the
checkout.
4. The majority of these studies have been conducted in Western cultures, such as the UK and
the USA, meaning that a consideration of individualistic cultural norms towards spending must
be taken, in contrast to collectivist cultural norms.
Menu Design Psychology
• Pavesic (2005) suggested that the ‘key is in the details’ when it comes to menu design, and
using this as a tool to increase customer spending and loyalty. Examples include the layout, font
size, the number of items on the menu, and the extent to which the menu matches the theme of
the restaurant. This idea was further developed by Seaberg (1971), who suggested that drawing
the customers’ attention to certain items is essential to increasing profits e.g. those items with
the largest profit margins.
• Dayan and Bar-Hillel (2011) studied the effects of changing primacy, recency and menu item
positions. They found that customers are more likely to choose items at the top or bottom of the
menu, compared to in the centre (56%). In a second study, out of a total of 951 orders, the most
commonly ordered items were those on the ‘extremes’ of the menu i.e. the topmost or
bottommost items.
• Wansink et al (2005) studied the link between sensory perception and the name of a menu item.
The researchers found that when ‘new’ labels (nostalgic labels with geographical references)
were placed instead of traditional ones (e.g. Succulent Italian Seafood Filet), these descriptive
labels changed the customer’s perception of the food as having more calories but also being
more appealing. This means that the use of descriptive food labels can improve sales and a
customer’s perception of the restaurant and its food!

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Evaluation

1. Numerous replications of the studies above have been carried out, which increases the
reliability of the findings (reduces the likelihood that each study was a ‘one off’ and the chance
that the findings may have been caused by uncontrolled extraneous and confounding
variables) and the validity of the conclusions drawn.
2. Dayan and Bar-Hillel’s study used deception towards their participants, who were not told the
true aims of the study. This means that the participants were unable to give their informed
consent, so two BPS ethical guidelines had been breached. The fact that the participants
were aware that their behaviour was being monitored may mean that the findings were biased
due to participant reactivity (a type of demand characteristic), where the respondents
deliberately change their behaviour in order to please the researcher.
3. The collection of quantitative data is useful in that it can be objectively interpreted and can
also undergo statistical testing, so the extent to which the finding is significant can be
determined. However, qualitative data provides more descriptive detail and a larger insight into
the customer’s experience, which may be particularly important for companies who want to
make particular improvements to customer experience.
Personal Space
• According to Somner (1969), there are 4 zones of personal space: intimate space, personal
space, social space and public space, with invisible boundaries separating these different
zones. Respect shown towards these boundaries minimises stress and so is likely to increase
sales within a retail environment, as demonstrated by Felipe and Somner (1966), who showed
that individuals are likely to remove themselves from a social situation if their personal space
has been invaded by another.
• Personal space is linked with the concepts of overload, arousal and behavioural constraint. For
example, if another person invades our personal space, then we are faced with an overload of
information (i.e. the other person’s facial features, expression etc), experience more arousal and
also question the freedom we have over our own behaviour.
• The idea of the importance of personal space was tested by Robson et al (2011), who found
that close table spacing reduced the quality of the
customer’s experience at the restaurant, as well as
increasing feelings of stress and crowding, whilst
decreasing privacy. The opposite could be said for
distant table spacing i.e. 24 inches. Gender is also an
important consideration, where women are more
sensitive to feelings of crowding and a lack of privacy,
and so are likely to spend less money and time at the
restaurant.
• Milgram et al (1986) investigated the idea of defending
one’s place in a queue, where a confederate would
calmly ask to and interject into a queue. The researchers
changed the numbers of intruders and ‘buffers’ in the
study (who came between the intruder and the naïve
participant). The findings showed that naïve participants
were more likely to confront the intruder if they behind
them in the queue, as opposed to in front of them. This resulted in physical and verbal abuse,
such as pushing the intruder out of the queue or verbally asking them to leave (21.7% of cases).
These were not always hostile, but non-verbal signs included ‘dirty’ looks and glares. Therefore,
a queue can be considered as a social system, where it is assumed that each person’s position
is respected.

Evaluation

1. Robson et al’s study suffered from reduced ecological validity because participants were
asked to give responses whilst considering an imaginary scenario, as opposed to a real-life
situation. This means that the findings are only likely to be applicable within this specific
research setting.
2. However, Milgram et al’s study features greater ecological validity because it is a field
experiment, and so records behaviour in the environment within which it would usually occur.
This means that a ‘cause and effect’ relationship between the two outcomes can be more

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validly drawn, as well as taking into account individual participant variables such as age and
gender.

3. The real-life applications associated with an improved understanding of this research is the
ability to purposefully design retail environments in a way which increases the customer’s
perception of personal space, reduces stress and so increases the time and money that they
will spend at the site. This has economical implications in terms of increased profitability for
the company.

4. However, most of the studies above were conducted in individualistic cultures. Collectivist
norms about personal space and ‘queue etiquette’ may differ, and so this means that such
research has poor cross-cultural validity because the findings are restricted to Western/
individualistic cultures.

Part C: Consumer Decision Making

Consumer Decision-Making
• Neumann and Morgenstern (1944) suggests, through their utility theory, that consumers make
rational decisions in an effort to maximise the likelihood of positive outcomes. On the other
hand, Simon (1956) suggested that instead of religiously researching every product on the
market, the consumer simply chooses to purchase a specific item because it is ‘good enough’
for their purposes and for the time they have available for such research. According to
Kahneman and Tversky (1970), through their Prospect Theory, consumers make decisions on
purchases based upon the two concepts of value and endowment, where individuals have
different perceptions of these two concepts.
• There are a series of steps involved in consumers making purchasing decisions, and these have
been utilised by businesses. There are differing views as to how these stages can be
established. For example, according to Green and Wind (1973), the stages can be categorised
as compensatory, non-compensatory and partially compensatory. On the other hand, Richarme
(2005) suggests that there are three non-compensatory strategies (satisficing, elimination and
lexigraphic), whilst there are only two partially compensatory strategies (Majority of Conforming
Dimensions, and Frequency of Good and Bad Features).
• According to Richarme (2005), the consumer decision-making process can also be explained
according to consideration (an initial list of products is drawn up) and involvement (suggests
that the amount of cognitive effort used to make a decision is directly proportional to the
importance of this decision).

Evaluation

1. An improved understanding of the cognitive mechanisms underlying the decisions that

consumers make can be exploited by companies to increase profitability, such as through the
use of easily-accessible online stores/websites (as suggested by Jedelski et al in 2002).
2. A weakness specific to utility theory is that is does not consider individual differences because
it assumes that all consumers are rational. This is not always the case, especially because
different people have different perceptions of value and endowment (according to Kahneman
and Tversky) and so may be seen by ‘irrational’ by others. The method of linking these
explanations also suggests that such theories are complementary, rather than polar opposites.
3. The findings above may be culture-bound because they were mainly carried out in Western/
collectivist cultures, where norms of how much money the average person spends and on
what may be significantly different to the norms present in collectivist cultures e.g. China and
India.
Choice Heuristics
• Heuristics act as ‘mental shortcuts’ which prevent us from sensory overload and from
processing too much information at once. However, they can also lead to perceptual errors due
to the distortion of sensory stimuli. The idea of availability heuristics (our immediate perception
of a brand or product) was tested by Hoyer et al (2009), who found that negative availability
heuristics (e.g. being sure that a poor-quality top will lose its shape in a few days) lead to a
negative perception of the brand/product. This effect can either be enhanced or overcome using
information from others, such as their personal opinions, to change our perception of base rate
information (how often an event occurs). Availability heuristics work hand in hand with
representative heuristics, which represent how we make mental comparisons of one product
with the best alternative which comes to mind.

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• Wansink et al (1998) studied the processes of anchoring and purchase quantity decisions. The
researchers suggested that consumers are likely to spend more money if promotions quantify
large volumes of items to purchase, as opposed to individual prices, and the consequent study
demonstrated a 32% increase in sales when the former method was used, as opposed to the
latter. However, the researchers acknowledged the potential role of consumer confusion as a
way of explaining these findings.
• Wansink et al also investigated the effects of purchase limits, using a limit of 12 items per
customer in their particular study, in 3 supermarkets in Iowa. The findings showed that
consumers bought, on average, 3.7 more cans of soup when the advertised purchase limit was
12, as opposed to no limit. This suggests that such limits can change a consumer’s perception
of the worth and value of the product, because a higher limit implies a ‘better deal’.
• Knutson et al (2007) investigated the role of pre-cognitive decisions in the consumer’s decision-
making process. The participants had to choose the price of an object after they had seen the
object and the price separately, for 4 seconds each, using 26 healthy right-handed adults. The
researchers found that the mean number of objects purchased was 23.58 and there was a
negative correlation between increasing preference and decreasing reaction time. This suggests
that long reaction times indicate that the consumer is undergoing a conflict of interest e.g. the
item is too expensive or has no practical value.

Evaluation

1. Heuristics are particularly important in maintaining customer loyalty towards a specific brand
by ensuring that the customer’s favourite products are readily available and accessible.
2. Through an increased understanding of anchoring, purchase quantity decisions and pre-
cognitive decisions, companies can strategically create promotions and limits for consumer
purchases in order to maximise profits.
3. However, particular problems associated with field studies (such as that used by Wansink et
al) is that there is no control over confounding or extraneous variables which may have caused
the changes in spending as opposed to the purchase limit e.g. how tired the customers were,
their mood, financial situation etc. This reduces the validity of the conclusions drawn on the
basis of these studies.

Intuitive Thinking and Its Imperfections

• According to Kahneman and Tversky (1979), there are two systems of thinking - system 1
(thinking fast, and is intuitive and requires no effort) and system 2 (thinking slow, and is
deliberate and requires conscious effort/insight). Heuristics are closely linked with these two
systems, and particularly the role of the anchoring heuristic i.e. the influence of irrelevant
information. Similarly, the representativeness heuristic are linked with thinking slow systems (1),
where individuals ignore the frequency of certain events which make them more or less likely to
occur within a given scenario, often resulting in denial of the incorrect answer.
• Choice blindness was investigated by Hall et al (2010). Swedish participants samples jam or tea
at a stall in a supermarket, and then unknowingly had the flavour of each item swapped, and
participants then had to say which out of the two options they preferred. This resulted in one of
three behaviours: concurrent detection (the individual immediately says that there’s a
difference), retrospective detection (the individual is aware of the change but does not voice it)
or sensory-change detection (the individual reported no specific change). On average, 33.3% of
the manipulated trials were detected, with the jam being 1% higher than the tea. The rate of
detection was lower when the pairs were more similar. This emphasizes the high frequency and
influence of choice blindness in commercial settings.
• Braun-LaTour et al (2004) conducted research into advertising and false memory. The
researchers found that the majority of participants did not realise an incorrect character (Buggs
Bunny) in a Disneyland advert, and simply assumed that this character must have been Mickey
Mouse. Providing incorrect information about Buggs Bunny increased the likelihood of
participants reporting this by 15%, showing that false adverts do affect memory. The form of
false information was then tested as either words or pictures or both. The researchers found
that false information given in verbal form had a smaller impact on memory than false
information given in pictorial form, as shown by the findings that participants remembered more
items when pictorial information was given i.e. 76% compared to 46% when only verbal cues
were used.

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Evaluation

1. The ideas of choice blindness and thinking systems demonstrate that human cognition can be
faulty and therefore, can be exploited by adverts and companies. Choice blindness is
particularly important in showing that differences in products produced by the same brand are
unlikely to be noticed by the majority and even if so, these changes are unlikely to be voiced.
2. The ideas above also demonstrate the power of advertising and labelling, where simple
changes in the value of a brand can give us the impression that it is luxury or budget, and so
will affect the customer’s perception of the brand.
3. The concept of false memories have important implications in the judicial system, such as
reevaluating the utility and reliability of eyewitness testimony, as investigated by Loftus and
Palmer (1974).

Part D: The Product

Packaging, Positioning and Placement

• Howard (1992) suggested that gift wrapping is a direct symbol of the item being a gift, whilst
Poruvleb et al (2009) questioned this expectation. The gift can be unwrapped, wrapped in an
unconventional way or wrapped conventionally. In a study investigating the effect of wrapping
on the mood of the recipient, Poruvleb et al found that the majority of individuals have a
preference for wrapped gifts, regardless of the environmental consequences or financial costs,
and cite fear of embarrassment and ‘playing it safe’ as some of the key reasons for their views.
The overall conclusion was that gift wrapping is important to make it obvious that the item is a
gift, and to re-establish the social roles of two people
as a ‘giver’ and a ‘receiver’.
• Grossman and Wisenblit (1999) investigated the
importance of the colour of a product and the role of
associative learning. Classical conditioning (i.e.
learning through associations) can explain why we
associate certain colours with certain products e.g.
white with a washing machine, green with a
lawnmower etc, and this influences our perceptions
and expectations associated with this product. Such
associations may also be responsible for physiological
reactions (e.g. yellow being associated with warmth
and happiness), and this understanding can be
exploited by commercial stores to create a certain
atmosphere within their shops.
• The idea that people have colour preferences which
are specific to certain products is supported by
Holmes and Buchanan (1984). Therefore, this all
suggests that associations between colours and
objects, and this has different meanings/attributes for different individuals, which may play a
crucial role in decision-making processes where there is little involvement on the part of the
consumer.
• Atalay et al (2012) studied the relationship between attention and shelf position, by using eye
tracking devices. The researchers found that brands featured in the centre of the shelves
experienced a higher rate of eye fixations across a longer period of time and so a greater level
of consumer attention, translating in an increased likelihood of choosing these items and so
increased profitability (as these items are usually the most expensive). This was supported by
the second study, which showed that the central product is still more likely to be chosen than
others at the extremities of the shelves, even if this central product is not in the individual’s
central visual field.
Selling the Product:
• ‘Solution-selling’ is a method of marketing products whereby they are thought to solve a
common problem, and therefore make a person’s life “easier”. A second method is focusing on
the competitor. This is especially used in supermarkets, who compete with each other for
customers through price-matching and loyalty card schemes. A third method is a product-
focused technique where the merits of the product (e.g. quality and utility) are displayed alone,
ignoring the needs of the customer and the workings of other competitors.

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• Kardes (2007) demonstrated the idea of a ‘disrupt-then-refute’ (DTR) technique, where the
customer is initially confused by the message but this is then rephrased to add clarity. For
example, two groups of confederates approaches customers in a supermarket and advertised
the candy as either “100 cents - that’s 1 dollar!” (DTR group) or as “1 dollar” (control group), and
found that the DTR group purchased 21% more candy than the control group. This suggests
that DTR can be used to internalise the message which is advertised, and so customers
consider the offer/product more due to this confusion. The researchers also found a positive
correlation between NFCC (a measure of indecisiveness) and the extent to which each individual
is affected by DTR.
• Cialdini (1984) suggests that there are several key methods which can be used to persuade a
customer to purchase an item or service: reciprocity, commitment, consistency, liking, authority,
social proof and scarcity (particularly used in Black Friday sales).

Buying the Product:

• The theory of planned behaviour suggests that there is a positive correlation between increasing
intention and the increased likelihood that a customer will make a purchase. However, this may
also explain why some may have a flawed perception of behavioural control because intentions
are affected by subjective norms and attitudes, as explained by Azjen’s theory of planned
behaviour.
• According to the stimulus-response model, marketing stimuli and other stimuli contribute
towards the buyer’s characteristics and their decision-making processes, which results in
several possible responses on the part of the buyer e.g. product choice, retail choice and
purchase frequency.
• Buyer characteristics are cultural, social, personal and psychological. According to Engel,
Blackwell and Kollat (1968), the decision-making process of the consumer can be explained in
terms of identifying a problem, searching for information about a possible solution, evaluating
any alternative solutions, choosing to purchase a specific item or service, and then the
consequent post-purchase behaviour.

Evaluation

1. Poruvleb et al demonstrated that gift wrapping is vital in establishing the social roles
associated with giving and receiving a present. This has practical and economical implications
for retailers because by originally packaging the products as gifts, they can then be sold with
the positive association of having the purpose of being a gift, and so increasing the likelihood
that the customer will purchase this as a gift.
2. Focus groups are a particularly important part of generating data concerning the product and
brand, and so being a useful starting point for potential future changes to the product.
However, such focus groups are still affected by cultural bias/situational variables, as
suggested by Atalay et al, where eye-tracking technology may me a more objective measure
of the appeal of a product, compared to the subjective opinions of a focus group.
3. An improved understanding of the techniques used to sell products, especially in relation to
customer needs, is crucial in improving sales and profitability, as well as informing companies
of possible areas where marketing strategies could be re-evaluated.
4. Most of the studies above emphasise the importance of situational variables. For example,
this is particularly evident in the DTR technique where retailers can exploit a customer’s initial
confusion to their advantage.
5. The use of rating scales can quickly produce large quantities of data with relatively little effort
on the part of the researcher (as they do not need to be present when the customer completes
their scale) but also suffers from the demand characteristics of social desirability bias and
acquiescence bias.
6. The particularly useful real-life applications associated with an increased understanding of the
process of a consumer choosing to buy a product, is that retailers can exploit the idea that
customers often choose to make a purchase depending on their needs and intentions.
Therefore, advertising and marketing could be specifically geared towards emphasising how a
customer’s life would be different if they choose to purchase the item or service.

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Part E: Types of Advertising and Advertising Techniques:

Persuasive Techniques

• People seem to believe that they themselves are not affected by advertising, but others are, as
suggested by Wilson and Brekke (1994).
• It is important to strike a balance between the use of striking visual stimuli in advertisements
and the message proposed by the advert. It is of no use to the retailers if customers simply
remember the advert but not the actual brand or message!
• McCarthy (1960) suggested that the key elements of effective marketing are the product (what is
it?), place (where can I buy this?) , price (is it worth it and do I need this?) and promotion (how
did I hear about this product?). On the other hand, Lauterborn (1990) suggested that effective
marketing can be explained in terms of customer want or need, cost to satisfy, convenience to
buy and communication.
• Auty and Lewis (2004) studied the effectiveness of product placement in films (i.e. where the
characters are seen drinking a recognisable brand of soft drink or alcohol). Limited processors
(6-7 year olds), cued processors (11-12 year olds) and strategic processors (12+) all viewed the
same film clip of Home Alone, before being questioned about the clip. The children were offered
Pepsi and Coca-Cola to drink whilst answering the questions (i.e. an implicit preference test).
The researchers found that children
in the experimental group were
significantly more likely to choose
Pepsi as opposed to Coca-Cola
compared to the control group,
despite Coke dominating the UK
market shares. This demonstrates
the enormous influence of product
placement, to the extent that it can
influence people to go against the
established market norms.

Communication and Advertising

Models
• The source of the advert is
particularly important in determining how likely we are to buy a product i.e. how credible or
trustworthy is this advertisement? The credibility of an advert can be improved through the use
of experts, whilst trustworthiness can be improved through the inclusion of ‘normal’ people
giving their opinions on the product - this allows the average consumer to relate to the product
and the advert, as suggested by Boyd-Jannson (2010). However, especially when using
celebrities to endorse products, it is important that this celebrity does not have too many
commitments because they are then viewed as less trustworthy (which is counterintuitive in
these circumstances).
• Repetition and consistency of the message, whilst accompanied by distinctive images and an
acknowledgement of existing views/opinions about the product, are key parts of effective
marketing techniques.
• According to the AIDA model, there are 4 levels of varying significance and influence in terms of
persuading the consumer to buy a product. Awareness is the broadest, followed by interest,
desire and action. This model was further modified by the CAB model (cognition, affect and
behaviour), whilst the TIREA scale focuses on the role of thoughts, interests, risk, engagement
and action. The REAN model suggests that it is most effective to look towards the customer life
cycle as an explanation for effective marketing i.e. reach, engage, activate and nurture.
• According to Lavidge and Steiner (1961), the Hierarchy of Effects Model can be used to explain
marketing communication in terms of: Awareness (where have I seen this advert before?),
Knowledge (what does this product promise?), Liking (how does this product compare to the
competitor’s alternative?), Preference (how viable are the alternatives?), Conviction (how
motivated am I to purchase this product?) and Purchase (the final step). These 6 steps can then
be reduced into three aspects of consumer behaviour/life cycle: cognitive, affective and
conative.

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Psychology of Consumer
Behaviour

Advertising Applications
• Fischer et al (1991) investigated the idea of brand recognition in children by testing their
awareness of 22 brand logos, including 10 stereotypically ‘children’ brans e.g. Coca-Cola, Walt
Disney and Nike. 229 children were individually tested by matching cards with the logos onto a
board as part of a game. The researchers found that the recognition increased with age -
younger children reported better recall of typically ‘childlike brands (e.g. The Disney Channel -
91%), whilst 91% of 6-year olds recognised Old Joe the Camel i.e. 61% more than 3-year olds.
The surprising finding that children as young as 6 were able to recognise cigarette brands
emphasises the influence of TV advertising.

• Synder and DeBono (1985) suggested that an individual’s self-monitoring levels will affect how
product images and quality appeal to them. Using 50 male and 50 female participants,
participants were exposed to all 3 advertisements (Canadian Club Whiskey, Barclay cigarettes
and Irish Mocha Mint coffee) before completing a 12 question questionnaire. The researchers
found that those individuals with high levels of self-monitoring found the image-orientated
adverts most appealing, whilst quality-orientated adverts were favoured by those with low levels
of self-monitoring. The former group were also prepared to pay significantly more for products
compared to the low self-monitoring group, further supporting the conclusion that dispositional/
personality traits have a significant impact on which adverts are most appealing/effective, thus
suggesting that retailers and marketing companies should keep this in mind.

• Kohli et al (2007) studied the effectiveness of slogans by considering the ‘brand’ being made up
of the brand name, logo and slogan. Slogans are flexible in that they can be more frequently and
easily changed compared to brand names. Therefore, slogans are a key part of brand
recognition. They increase brand awareness and also style the brand’s image. Yalch (1981)
found that overly complex slogans are increasingly difficult to remember (and so
counterintuitive) whilst ‘jingles’ are better suited towards companies with smaller budgets who
rely mostly on radio advertisements. However, puns can help to increase brand awareness, as
demonstrated by Lagerwerf (2002), especially if they are repetitive and fun!

Evaluation

1. There a multitude of dispositional and individual characteristics/traits which may influence

participants to choose one product over another in the case of product placement techniques,
and so it is important not to jump to unreliable causal conclusions.
2. However, Auty and Lewis’ study in particular may have suffered from demand characteristics.
Since the participants were so young (6 years old was the youngest) they may have struggled
to understand the purpose of the study or even why they were watching the film, which may
have translated into confusion and a failure to please the experimenter, this resulting in
atypical consumer behaviour.
3. A lack of empirical evidence concerning advertising models means that these models are
highly speculative and so may be considered as unreliable. Therefore, this reduces the utility
of these models as advertising companies and retailers may be reluctant to base their
marketing strategies and adverts on models which have little or no evidence to support their
effectiveness.
4. The use of children in Fischer’s study is particularly informative because it means that retailers
and brands can make informed decisions about how to target children as customers,
particularly as they have significant influence over their parent’s purchasing decisions too. The
matching game used by Fischer was clever due to preventing the problem of demand
characteristics or the Please-U effect in the study because the children saw the game as fun
and so displayed typical behaviour.
5. The studies above have demonstrated that an interactionist approach is best adopted when
explaining the effectiveness of ad campaigns - dispositional factors are key in determining
which adverts are most effective, as demonstrated by Synder and DeBono. Therefore, retailers
should use this to their advantage and create different adverts (both quality and image-
orientated) to appeal to the different personalities of customers.

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