Evaluating an Advertising Campaign

MBA 854-March 6, 2002

Executive Summary Have you ever thought about why you choose one soft drink over another? You probably dont even realize that the attributes of the product are somehow connected to your underlying values. Do you think your values were at all influenced by advertising? There are many different factors in ones environment that can persuade an individual to use a certain product or service. Marketers need to understand these influences to help them develop effective advertising to persuade consumers to buy particular products or services. One technique that a marketer can use to get at the qualitative factors influencing consumers purchasing behavior is the laddering interview technique. In using the laddering interview, a researcher is able to guide the consumer through a series of questions to get at what specific attributes they find important in a particular product. The researcher will also need to uncover the consequences of these specific attributes for the consumer. In other words, what are the benefits to the consumer of the particular attributes of a product? From this, the researcher will be able to determine the real reason the consumer chooses a certain product. This is the value or end-state for the consumer. By understanding the attributes, consequences, and values of the consumer, the researcher can then use the means-end approach to link these attributes, consequences, and values into a map to then see a complex web of reasons why consumers purchase certain products and what they hope to receive from their purchases. From this map the researcher can use a MECCAS model to develop an advertising strategy to effectively target specific consumer attributes, consequences, and overall values or end-states that the consumer is driving for. This paper will discuss in detail each of the points mentioned above and give the reader a greater understanding in how to develop and evaluate an effective advertising campaign.

Introduction The focus of our research is to present the techniques used to evaluate an advertising campaign and explain why an advertising campaign may be effective and why it may not be. Philip Kotler defines advertising as any paid form of non-personal presentation and promotion of ideas, goods, or services by an identified sponsor (Kotler, 2001). Advertising is another form of a common communication platform along with sales promotion, public relations, personal selling, and direct marketing (Kardes, 2000). In developing an effective advertising program, five critical decision-making factors are useful for identifying the target market and buyer motives. These are known as the Five Ms of Advertising, which are explained in Exhibit I. A common problem that is experienced by advertising managers is understanding consumers at a strategic level. It is sometimes difficult to use the information that they do find as the basis for developing alternative positions. One way to help understand the motivations of consumers is the means-end approach. This approach takes into consideration the underlying goals that people have and relates them to the attributes of a particular product. Our discussion will explain the MECCAS model that can be used to evaluate an advertising campaign as well as a particular interviewing technique, laddering, that is employed to ultimately discover peoples underlying values. The laddering interviews flows into the means-end approach, which is then used in the Meccas model. Differentiation of a product alone does not necessarily make it sell. It is ultimately the connection that a consumer perceives with a product that makes it desirable. The strength of the means-end model is that it illustrates the most important elements that motivate people to buy a product, and it also shows what the connections are between these motives and the attributes of the product or service. We will also discuss the role of persuasion in advertising and how

peoples persuasion knowledge influences their responses to persuasion attempts This research is important to companies so they can spend their advertising dollars more effectively. If the underlying values of consumers are not aligned with attributes of a product, they will not be interested in buying it. Persuasion From a practical marketers point of view, effective advertising is all about persuasion. Collins COBUILD dictionary defines it as the act of persuading someone to do something or to believe that something is true. Social scientists define persuasion as an active attempt to change beliefs and attitudes. Therefore, developing persuasive advertising is a big task for marketers. As a basis of developing this persuasive advertising, research about the nature and development of persuasion knowledge and how people use it to interpret, evaluate, and respond to influence attempts from advertisers and salespeople is for academic business scholars. Persuasion Knowledge Model The persuasion knowledge model (PKM) is a target and agent structure that presumes that within individuals, peoples persuasion knowledge continues developing throughout their life span. The PKM model presents three sources of persuasion to people. First, personal experiences in social interactions with friends, family, and coworkers are the most powerful source, since people trust those people more than others. Conversations about how peoples thoughts, feelings, and behaviors can be influenced are the second source. Finally, in contrast to the firsthand experiences of active learning, the observations of marketers and other known agents are a more passive way of persuading others. Persuasion knowledge performs schema like functions, such as guiding consumers attention to aspects of an advertising campaign or sales presentation, providing inferences about possible background conditions that caused the agent to

construct the attempt in that way (Friestad & Wright, 1994). In sum, the Persuasion Knowledge Model may offer a basis for gaining added insight about the processes of both consumer behavior and social influence. Given the importance of persuasion sources and processes, five persuasion principles by Robert Cialdini give marketers meaningful foundation in developing effective and persuasive advertising. Information asymmetry was a major advantage for marketers to persuade consumers since consumers mainly rely on the information which marketers offer. However, a new Internet paradigm with technology support allows consumers access to tremendous amounts of information, and it is becoming another threat for companies, weakening their traditional strategy. Companies choose their strategy in the matrix of two dimensions between price and differentiation. But surprisingly enough, people tend to rely more on one important piece of information and respond to it, rather than identifying and analyzing each relevant piece of information when making a decision. Of course, people will make trade-offs between their personal time and finding a lower price based on their personal value system under different constraints and situations. Many studies show that even price-sensitive consumers tend to keep purchasing from one store once they believe that that store offers the cheapest products. Once consumers trust a sales person or other experts, they tend to believe the information from that source without further information searching. This highly reliable single piece of information is used as a trigger, corresponding with fundamental, powerful principles of psychology and studies of human behavior (Cialdini, 1985). Reciprocation is the first trigger for compliance in the decision making process of persuading customers. Reciprocation governs the making of concessions in a negotiation situation. Direct

and high involvement forms more favorable attitudes toward subjects. The second trigger is scarcity, in which people try to seize those items and opportunities that are scarce or are becoming unavailable. People tend to feel special about rare things, contrasting to the need of assimilation to others. This is the strategy of high-end premium products, which are affordable for a small number of privileged people. The willingness of people to follow the suggestions of someone whom they see as a legitimate authority is the third one. People tend to listen to their parents, professors or bosses because they consider them trustworthy and responsible. Consistency is the fourth trigger, which builds robust belief and attitude over time. If the messages from one source is not consistent and tends to be changed fundamentally, people may doubt the truthfulness of it. Consistent messages affect the mindset of people in that the messages are truth. At last, social validation is when people are more influenced to perform an action or hold a belief when they see that others are doing so. People dont want to be an extreme outlier in terms of social norms that everybody agrees to and assumes there are no exceptions. Persuasion is a complex topic. In fact, it is so complex that marketers are not convinced on how to effectively choose from their alternatives. However, marketers should be able to better harness and direct the influencing process for effective persuasion by understanding and using persuasion principles (Cialdini, 2001). Laddering The laddering interview technique is one method for identifying consumers means-end chains. It is a semi-structured, qualitative method in which respondents are asked a series of questions about a particular product or service (Olson &Reynolds 2001). They answer by describing freely why an attribute is important to them. Usually, the interviews are structured so that they have an agenda or an end goal, and the questions are formed to gain additional insight

into the consumers motivations to buy a product. The laddering method is different from normal research interviews like focus groups because it is aimed at finding more abstract reasons for choosing a brand. Typically, only attributes and benefits are sought as reasons for usage. Interview Method Laddering begins by identifying the most important distinguishing attribute of a product. Attributes are in products. For example, when choosing a type of soft drink, a person might choose low or no calories as a basis for purchase. From here, the interviewer tries to move the respondent up the ladder to different levels of abstraction. This is accomplished by asking questions such as: Why is a low calorie drink important to you? The answer or answers to this question are the results of consuming diet soda. They are the consequences of the attribute. In this situation, a consumer might answer this question by saying that low calorie beverages help with weight control or that they are a healthier alternative to sugared beverages. This, in turn, can lead to the top rung of the ladder, which is associated with values. Values are the ends or high-level states that are reached. The value that is discovered in this interview might be selfesteem or feeling good about yourself. Advantages Laddering starts out by asking respondents to make distinctions about perceived differences between brands or products. The advantage of this technique is that distinctions can be framed into different choice situations with specific sets of competitive alternatives. This provides the best results because the respondent is able to make a decision in the correct context. For instance, when interviewing a consumer about their choice of beer, he or she might choose a different brand depending on where they are or who they are with. If a consumer is planning on drinking beer at home with his family, he or she might choose Miller Lite. It is relatively

inexpensive, flavorful, and it has fewer calories than regular beer. On the other hand, if a consumer is out for drinks with clients or on a date, he or she might choose to drink Bass. This beer is a more expensive, full-bodied beer. It is perceived more as a beer that a successful person might drink. The premium brand attribute of this beer is connected to the value of success in the MECCAS model. By discovering consumer beliefs and attitudes within the context of behavior, laddering overcomes a major problem of most attitude research where distinctions might not be connected with choice. In this case, important choice criteria might be associated with less meaningful distinctions. This might explain why attitudes do not always predict behavior, but attitudes toward choice behavior concerning the object frequently do. Disadvantages-Blocking One of the biggest problems in laddering is when respondents become blocked at one level and are not able to move on. This problem can be resolved by some prompting from the interviewer. They should not put words in the consumers mouth but should give them some general guidance. Several techniques are available to overcome blocking such as reiteration of occasion where the interviewer reminds the respondent of the occasion that the ladder is referring to. Alternate scenarios are used where the interviewer asks the respondent to think of a similar scenario to the one being discussed. This sometimes gets the ball rolling. Negative laddering questions can be used, which probes to find the respondents reasons for not wanting to do something or to feel certain ways. Sometimes respondents will give very plain answers that dont really mean anything. For example, they may say that they feel satisfied. But, what does that really mean? Are they pleased with the product or just not upset with it. Slang can be misinterpreted or a respondent

might give more than one answer. Another common response to questions during a laddering interview is: I just like it. This can be handled by simply asking: Why do you like it. You may get an acceptable answer or a because I do. Laddering Analysis After recording the results of the interview, the responses should be grouped as an attribute, consequence, or value. From this grouping, a hierarchical value map (HVM) can be constructed. This summary map minimizes the redundancy between perceptual orientations and makes them easier to contrast and assess. The HVM identifies the key content elements of the study and the associations that give meaning to the differences that consumer perceive between competitive products (Olson & Reynolds, 2001). The goal at this level is to focus on meanings that are central to the purpose of the study. It should be noted that the term Consumer Decision Map (CDM) is used in situations where the map represents how people make decisions rather than just how their thoughts are organized. Applications There are several options available to apply the data that is obtained by using the laddering technique. Once all of the responses are organized into an HVM, valuable information can be pulled. For instance, you can segment consumers according to their values associated with a particular product class or brand, assess brands or products in a traditional manner, evaluate competitive advertising, or use the information as a basis for developing advertising strategies.

Segmentation By using segmentation, respondents can be grouped according to a particular aspect of their behavior, attitudes, or dispositions in a way that lets us understand the consumers more thoroughly. The final values that are reached at the top of the ladder may be used to classify the consumers, or the connections between the attributes and values may be used. Once the segmentation scheme has been created, consumer behavior regarding brand choice can be assessed. An example of this could be linked to the scenario we discussed earlier about the beer choice. Attributes such as premium are linked to higher-level values such as achievement. These links illustrate common reasons why one brand is chosen over another in specific situations. Product-Brand Assessment Laddering can also be used to evaluate a product or brand. In this case, it is beneficial to allow respondents to use their own frame of reference rather than being guided by pre-set questions. This facilitates getting to the higher-level consequences and values rather than focusing on the simple attributes of a product or brand. The output from laddering, coupled with the unique analytical procedures it allows, provides the researcher with a better understanding of the basis on which consumers make distinctions between competing brands (Olson & Reynolds, 2001). It is often the case that marketing decisions are made on discrimination differences and not on preference differences. Using the laddering approach allows the consumer to be studied in a way that helps a marketer understand the choices being made in a consumers own context.

Assessing Advertising Another way to use the results from laddering is to discover what people really think about certain types of advertising. Advertising can be looked at in different ways when it is perceived in the context of the different levels of attributes, consequences, and values. This is done by showing a group of respondents a series of advertisements soon after they complete a laddering exercise. At this point, the respondents are in tune with their feelings about why they make choices when deciding between two products. After viewing the ads, they are asked to rate them on the extent to which the ad communicates at each level and to provide some comment on why it does or does not communicate at that level. An analysis of the results is conducted, and the statements that are compiled are used to assess the communication at the various levels. In some cases, it is found that ads are effective at communicating at the attribute level but not at the higher consequence and value levels. On the other hand, some ads may communicate at the value level but not at the attribute level. The most effective ads are the ones that communicate at all levels with a logical link between attributes and values. Advertising Strategy The development of advertising strategy is the probably the most important benefit of the laddering technique in the advertiser/marketers eyes. It provides the most applicable insight that can be used to create effective television commercials and print ads. The levels of abstraction framework that was discussed underlie the formation of the means-end chains and provide a basis for coordinating the results of laddering to advertising strategy development. In the next section, we will discuss how this framework is used in the MECCAS model.

Means-End Approach and the MECCAS Model To successfully position a product in todays competitive marketplace, a manager needs a set of tools to help identify personal motivations of consumers to then develop a strategic position for the product or service. One tool that a manager can use is the Means-End approach. The means-end approach is an umbrella term that refers to a set of methods for interviewing consumers about the reasons for their decision choice and then interpreting those responses in terms of linkages between outcomes. (Olsen & Reynolds 2001). It is based on sophisticated research such as laddering interviews that investigate human values and studies what attributes and consequences consumers seek in products. A means-end chain links attributes of products (the means), consequences of these attributes to the consumer, and the personal values (the ends) that the consequences reinforce. (Gutman, 1982). Attributes are features of a product or service such as the size, aesthetics, horsepower, or trunk space of an automobile. The consequences are what the consumer anticipates to receive (benefits) or avoid (detriments) when consuming the product or service. Continuing with the car example, consequences could be status, safety, resale value, or breakdowns (negative consequence). Values represent beliefs people hold regarding what is important in life. They pertain to end states or behaviors that people desire in their lives. (Schwartz, 1992). Every meaningful act of consumption can be seen as an attempt to achieve some value end-state. The means-end theory states that customers have value end-states in which they will choose products as a means of reaching those valued end-states. The linkage of the product to the consumer spans three basic levels. The product-specific level, or attributes, is where the physical and abstract characteristics of the product or service are. These are immediate, tangible, physical experiences. The person-specific level is where the values or desired end-states are.

These are more emotional, social, and include how the consumer personally feels. The third level is the linkage between the other two levels. This linkage is the consequences (of consumption or use), which comprise both positive and negative aspects. Some consequences can be positive for the consumer while negative consequences are something the consumer will likely want to avoid. Benefits of the Means-End Theory: The benefit to the means-end theory is that is shows not only what key elements motivate consumers, but also what the connections are between these motives and the tangible product or service attributes. (Olsen & Reynolds 2001). The means-end framework incorporates all levels into a conceptual model that focuses on the associations between the levels as well as the levels themselves. A consumers sequence of attributes, consequences, and values (A-C-V) associated with a product is called a means-end chain and represents a perceptual orientation of decision criteria. After interviewing different consumers (laddering interview technique), a series of means-end chains can be constructed. This map of A-C-V chains is called a Hierarchical Value Map (HVM). The HVM identifies the key content elements of memory and the associations that give meaning to the differences that consumers perceive between and among competitive products (Olson & Reynolds, 2001). The following is an illustration of an HVM map showing three attributes linked to two consequences, linked to two value end states. V1 A = Attributes identified by the consumer C = Consequences to the consumer V = Vales or means-end states for the consumer A1 C1 C1 A2 A3

V2

The dominant perceptual orientation should be the products positioning in marketing and advertising efforts. The conceptual constructs developed in the HVM can be used as the basis for developing an advertising strategy to appeal to those consumers with those particular valued means-end states. MECCAS Model: The Means-Ends Conceptualization of Components of Advertising Strategy (MECCAS) model is a tool to be able to help provide a procedure for applying the concept of means-end chains to the creation of advertising messages. The MECCAS model is made up of five components that correspond to the values, consequences, and attribute levels in the laddering interview technique and the mean-end model. Those components are the driving force, leverage point, executional framework, consumer benefit, and the message element. The driving force relates to the value orientation of the strategy or the end level focus of the advertising. It is the goal or the value of the consumer. This relates to the goal or values of the consumer, and is the V in the A-C-V chain. All the other points are really geared toward achieving the end level. The leverage point is the manner by which the advertising will tap into or reach the key value that serves as the advertisements driving force. The leverage point tells you which ladder in the HVM you are moving toward to reach the end value or driving force. The executional framework is the overall scenario or plot of the advertisement. It communicates the overall tone or style of the advertisement. The consumer benefit is the major positive consequences (or detriments that the consumer wants to avoid) for the consumer that the advertisement verbally or visually communicates. This relates to the C in the A-C-V chain. The message elements are the specific attributes or features of the product that are communicated verbally or visually that support the consequences of using the product. This relates to the A in the A-C-V chain.

Using the MECCAS model allows the researcher to understand the motivation of the customer, the positive attributes in the product in question, the anticipated consequences of the attributes to the consumer, and the value-ends of the customer, and in using the words and values of the customer directly, tailor the advertising appropriately to the consumer. It is basically a systematic way to approach the creative side of advertising. The MECCAS model coupled with the results of the HVM, allows the management to review several different strategies at once, and when the final strategy has been chosen, it allows for a more systematic review of the advertisement and what the final product should be. (Olsen & Reynolds 2001). Refer to Exhibit 2 for an illustration of how the MECCAS model can be used in practice. On the left side of the model are the five components of the MECCAS model. The center section of the illustration is the strategy involved. Here one would list the specific attributes, consequences, leverage point, and the value end-means that were identified in the laddering interview process. The left side of the illustration is the executional framework or the specification of meanings or connections. This is the overall tone of the advertisement. The generation of ideas to be the executional framework can initially be developed by asking the question, What will cause the connection to be made? (Olsen & Reynolds 2001). Once the ideas are generated for the three areas on the left side of Exhibit 2, specific scenes can be developed to deliver the desired meanings, which is the overall exectuional framework or tone of the advertisement. The goal of the specification of meanings is to create specific creative ideas to reach the value end. The product bridge connects the attributes of the product (message elements) to the consequences for the consumer (consumer benefit). The personal relevance bridge links the consequences to the consumer with the leverage point. The value bridge then links the leverage point to the driving force, or the value means-end of the consumer.

The MECCAS model allows for the creation of advertising that identifies important values of the consumer and relates those values to the anticipated consequences of the product, and with the key attributes that cause those consequences. The tone of the advertisement then communicates all this information to the consumer in an orderly fashion and takes into account their attributes, consequences, and values that they identified in the laddering interview process. This then becomes an important tool for both the creative consultants developing the advertisement as well as the management of the company. It allows both parties to have a single set of documents to systematically evaluate the advertising strategy for a particular product and make certain that the message conveyed in the advertisement is consistent with what the consumer has identified as being important to them. Conclusion: Understanding consumers perceptions and behavior is paramount in being able to develop an effective advertising strategy for a company. According to Russ Klein of Whisper Capital Investments, there is a trend in the industry to use more qualitative research in developing appropriate advertising and brand strategies. Qualitative information can be acquired by using the laddering interview technique, and then developing a means-end chain, which then can be used in the MECCAS model. The MECCAS model is then used to develop an effective advertising campaign that will link consumers attributes to their personal values using their own words. This is an effective method to inform and persuade the consumer in their purchasing decisions. The MECCAS model also gives the management of a company a reasonable way to check the continuity of the message of the advertisement created by others. It allows the management to look at a series of documents and compare consumer attributes, consequences and values, and match them up to the value end-states created by the advertisement and the

leverage points used to move the consumer from the attributes and consequences of the message to the value end-states.

Exhibit I Message !Message generation !Message evaluation and selection !Message execution !Social-responsibility review Measurement !Communication impact !Sales impact Media !Reach, frequency, impact !Major media types !Specific media vehicles !Media timing !Geographical media allocation

Mission !Sales goals !Advertising objectives

Money !Stage in PLC !Market share and consumer base !Competition and clutter !Advertising frequency !Product substitutability

(Kotler, 2001)

Exhibit 2 MECCAS Driving Force Strategy Specification of meanings (connections)

Value End Value Bridge

Leverage Point

Links attributes and consequences to the driving force

Personal Relevance Bridge

Consumer Benefit

Consequences Product Bridge

Message Elements

Attributes

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