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Getting Real: Drivers of Effectiveness in Online Advertising
When consumers are introduced to a brand, there are a series of sequential and cognitive steps that must occur to convert prospects into customers. Not all products and services follow the same timeframe. Here’s why.
From Dynamic Logic

Advertising is not always designed to drive a direct purchase behavior. The ability of a marketer to increase intent to engage in the desired behavior often depends on the perceived risk to the consumers. Very expensive products and services require more consideration before a financial commitment is made, because the consequence of making a poor choice can be great. Conversely, less thought or consideration is put forth for an inexpensive – sometimes called “impulse buy” – product or service as there is less risk associated with the purchase.

When consumers are introduced to a brand, there are a series of sequential and cognitive steps that often happen in the process of converting prospects into customers. To start, consumers must become familiar with the name of the brand, and if appropriate, recognize a logo as a symbol of that brand. Next, the brand must explain its value proposition to the target audience. This part of the process often relies on advertising messaging to articulate what the product or service does and how it can be of use.

Once a consumer is familiar with a brand and what its stands for, they are considered “aware.” Building awareness is a straightforward process relying on the communications of factual information – names, symbols and messages. The next stage is a greater challenge to marketers for they must persuade the educated prospects that the brand can be of value to them.

Informational vs. Transformational

There are fundamentally two types of “value” that influence purchase and usage motives (Rossiter & Percy, 1997). Informational and Transformational.

Informational

Informational products and services take customers from a negative state and return them to a state of equilibrium. Examples of products using Informational values include pain relievers, food (which satiates hunger) and household products. Marketers selling transformational goods must persuade consumers that their brand solves specific problems.

Transformational

Transformational products take customers from a state of equilibrium to a higher and more positive state, and they can often be labeled as rewards. Luxury cars, entertainment, vacations and ice cream are examples of products/services that are intended to make people feel happier, and are usually not considered things that consumers need. Marketers in this category must entice consumers to indulge and reward themselves or their families.

There are many brands that can fall into both informational and transformational categories and consequently have a greater challenge in consumer persuasion. Some clothing brands, for example, are necessary items in the minds of some consumers, and at the same time, luxury items to others. Certain automotive brands also fall into both categories.

Brand Favorability

The first part of the persuasion process involves convincing a consumer that the brand is a good choice. No one is going to consider purchasing a product or service if they do not have a positive feeling towards it. Brand Favorability is a measure of how strongly consumers feel about the brand – positively or negatively.

Purchase Intent

Once consumers have formulated an opinion about a brand, the next logical step is whether they will engage in a desired behavior. In most cases, the behavior that the marketer is looking to drive is a purchase or financial transaction. There are many instances, however, in which the advertising is aiming to drive a non-purchase behavior. Examples include campaigns striving to increase visitation of a Web site, test-driving of a vehicle, consultation with a physician or watching a network television show.

The ability of a marketer to increase intent to engage in the desired behavior often depends on the perceived risk to the consumers. Very expensive products and services require more consideration before a financial commitment is made, because the consequence of making a poor choice can be great. Conversely, less thought or consideration is put forth for an inexpensive – sometimes called “impulse buy” – product or service as there is less risk associated with the purchase.

Definitions

Aided Brand Awareness – Measures the level of familiarity respondents have with the brand listed

Message Association – Measures the extent to which respondents can match the copy or messages in the advertising creative to the brand.

Brand Favorability – Measures the extent to which respondents have a positive or favorable opinion of the brand.

Purchase Intent -- Measures the likelihood that respondents will take purchase action on the brand in the future.

© 2002 Dynamic Logic