[MUSIC] In this lecture, we will elaborate on how advertising works. What do we really know about this? We, marketers spend huge budgets on advertising campaigns. That's why we are naturally concerned with how advertising works, how it affects consumers, in order to formulate more effective advertising strategies. The first formal advertising strategy was probably AIDA, which stands for Attention, Interest, Desire, and Action. This model suggests that these are the four stages that consumers go through when they are exposed to an advertisement. According to this model, the most important role of an advertisement is to attract consumers. Attention is usually grabbed by the use of image, color, sound, layout, size interesting tag lines, and celebrities. Advertisements should be designed to attract consumers so that when they see it they will attend to it and start reading it. Once an ad grabs attention, it also has to involve consumer interest towards the product so that consumers will read more about the brand being advertised. By the use of an attractive subhead or by use different executional frameworks of advertising appeals, interest can be invoked. After creating an interest, the ad has to establish desire in the consumer's mind to use the product. The element of desire is usually created, either by the use of product information where we explain the necessity of buying the product and the features of it or by establishing an emotional bond with our consumers. Finally, the ad has to convince and initiate the consumer to take a favorable action towards the product by ultimately purchasing it. AIDA is a single model that helps us tailor how we create our advertisements. Hierarchy of effects model which is very popular in advertising theory emerged based on the AIDA model. Hierarchy of effects model explains how advertising affects consumer's buying process. It suggests that consumers move through a step by step process as they are exposed to advertisements and move toward a purchase behavior. The model suggests that a purchase will only be made when all steps in the hierarchy of effects have been completed. These steps are awareness, knowledge, liking, preference, conviction and behavior. These six steps can be split into three stages of consumer responses, cognitive, affective and conative. According to the hierarchy of effects model we need to prepare our ads to emphasize and satisfy consumer needs in accordance with the stage they are in. In other words, we design cognitive ads when our consumers are at the awareness and knowledge stages. We design affective ads when our consumers are at the liking, preference or conviction stages. And finally conative ads when we need to facilitate behavior. This model implicitly assumes that consumers act always in a rational way in their purchasing decisions and follow a certain sequence. Learn, feel and do. This means that cognition always precedes effect and behavior. In other words, hierarchy of effects model is based on the assumption that people will first learn something from advertisements, then from feelings about the product in the ad and finally tak an action. Is this realistic? Do we alway need detailed information before each purchasing decision? Consumers purchasing decisions may vary in the level of involvement they engender. Certain purchases are characterised by highly involved an elaborate processing, for example purchasing a car, a flat, or a personal computer. While others are characterized by minimal involvement, and almost mindless processing, for example, purchasing a light bulb, or a chewing gum. So, preferences do not always need a cognitive basis. We may just establish preference for a brand, because it is recommended by a friend without actually having information about the product features in detail. Sometimes the price is so small that the purchase does not warrant careful and deliberate consideration. We may just purchase a brand because a family member uses it. And after using it, we actually get some more information about it and start liking it. So we see that there might be other sequences of consumer responses. In contrast to the economics paradigm, which suggests that consumers are rational, some theories actually pay little attention to cognition and focus on effective responses of consumers. According to this approach, consumers may find preferences based on their feelings induced by advertisements. Even new exposure to an ad may lead to familiarity with the brand and form preference for it. Consumers may like the brand without an evaluation of product attributes. So we that little involvement required for the decision might affect the sequence of consumer responses. Additionally, consumer tendencies to rely more on cognition or affect may lead to different sequences. People who have higher need for cognition for information processing in general, may follow learn, feel, do sequence. Whereas people who rely on emotions may follow feel, do, learn sequence. Our key conclusion is that advertising pursues cognitive, effective, and conative consumer responses. Even though their sequence may change according to the consumer's or product's characteristics. We should keep in mind that these three consumer responses are required in order to consider an advertisement effective. In the next lecture, we will learn about the FCB which uses involvement and consumers' tendency to rely on affect and cognition as the two dimensions for classifying product categories. And then, we will elaborate on how advertisements should be designed, taking into consideration certain products' classification. [MUSIC]