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Acceptance Adapted from J. Scott Armstrong Updated November 2014 Acceptance 33

Acceptance Adapted from J. Scott Armstrong Updated November 2014 Acceptance 33

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Page 1: Acceptance Adapted from J. Scott Armstrong Updated November 2014 Acceptance 33

Acceptance

Adapted from J. Scott ArmstrongUpdated November 2014

Acceptance 33

Page 2: Acceptance Adapted from J. Scott Armstrong Updated November 2014 Acceptance 33

Learning Diary

The lectures follow an experiential learning experience. To make this work properly:1.Obtain a learning diary (paper). Suggest 10 x 13 bound diary.2.Keep it up to date.3.Take the learning diary with you to all class sessions.4.For self-learners, use the diary to track your learning progress for all of your learning activities.

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Objectives of this session

To understand and apply these principles and techniques (not to convince you). Ask for clarification as needed.

Set a goal for yourself on how many principles and techniques you plan to use by the end of this session. Even a goal of one will help you. Put this in your learning diary now.

Note: We will discuss only some of the slides. When you go through the lecture on your own, view it in “Slide Show” and follow the experiential procedures.

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Procedure

Focus on understanding.

Record questions in your learning diary that will help you to apply the techniques or principles, then, after you decide which ones you want to apply, try to answer these from the readings. If not clear, ask others for help.

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Gaining acceptance

Once you have the audience in a receptive mood, seek acceptance. Principles on acceptance rely heavily on information as well as the way that information is presented.

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Ansett New Zealand case

Your client, Ansett New Zealand, has been providing customer service that is better than the state airline, Air New Zealand.

Create believable arguments for TV commercials that will convince customers of “better service.”

Focus on applying acceptance principles during this session.

Alternatively, focus on an ad for your organization. 6Adprin.com

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Problem/Solution

“Often a bridesmaid but never a bride. Edna’s case was really a pathetic one. Like every woman, her primary ambition was to marry… That’s the insidious thing about halitosis (bad breath) …”

- Below an illustration of a sad-looking young woman in a Listerine ad, 1920s

When is it most appropriate to use the problem/solution approach? Write your thoughts in your learning diary then click for possible answers.

• Target market unaware of the solution• Target market unaware of the problem• High-involvement product

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Describe a problem and show how the product solves it (6.1.1)

State problem and move quickly to solution.Evidence and usage:1.7 times better recall for problem/solution ads for

ten quasi-experimental paired comparisons (WAPB, PA p. 144)

Most important of persuasion of 160 features for non-experimental data (Stewart & Koslow 1989)

18% of 1,059 tested TV commercials used it (Stewart &

Furse 1986) 9Adprin.com

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Successful problem/solution ad?

Alaska Airlines (0:29) by Joe Sedelmaier

Write the key problems with this application in your learning diary. Then click for suggestions.

Too much time on the problem

Problem already well known.

Lacks a “reason why.”

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Problem/solution was used to reduce auto thefts and thefts from autos

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Theme: “It’s easy to outsmart the vehicle criminal.”

Problem: Show how thieves think: “It’s all insured anyway,” and “Why should they have all of this when I have nothing?” Portray them as marginal people who capitalize on mistakes by others.

Solutions: Lock when buying gas; hide valuables (See Persuasive Advertising, p.144 for evidence)

An IPA award for effective advertising

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Apply problem/solution to Ansett NZ

Write your thoughts in your learning diary.

Relevant?

Problems known?

New solutions?

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Demonstrate product benefits (6.2.1)

In a 1961 commercial by the Xerox Corp., a little girl came into her father’s office, took some paper, went to a machine, and made copies. The ad ran only once because competitors, suspecting a hoax, reported “false advertising” to the Federal Trade commission (FTC).

First Xerox copier commercialsGeorge Lois reproduced it under the eye of the FTC, but used a chimpanzee instead. (See Persuasive Advertising, p.144-145 for evidence)

(Historical note: Haloid renamed themselves as Xerox.) 13Adprin.com

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Demonstrate product benefits. American Tourister: Gorilla

0:30

Regarded as a highly effective commercial.

Other classic and successful applications:

Timex: Acapulco cliff diving (2:23) – Complies

Union Carbide Super Insulation: Watch the birdie 2:00 Complies. Also note the theme, pace, and continuity.

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3D Printer – 4:27 - complies

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Demonstrates in detail all the product benefits.Compare with a written approach. Conclusion:TV has a relative advantage over print for some demonstrations.

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Evidence on demonstrations

Ads with demonstrations had 1.15 times better recall (based on quasi-experimental data from 73 pairs of WAPB print ads).

TV commercials with demonstrations were 1.42 times more persuasive than those without (based on non-experimental data. See PA, p.145-6)

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Demonstrations are widely used

Of 1,059 tested TV commercials, 60% demonstrated the product use and 24% demonstrated results. (Stewart & Furse 1986)

Apply to the Ansett case? Write your thoughts in your learning diary.

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In general, statistics are more convincing than examples. ___ True___ False (Predict in your learning diary.)

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True, unless people have strong contrary beliefs that they are not willing to examine.

Statistical evidence was more persuasive (based on meta-analysis of 15 empirical comparisons).

For an issue on which people are split 50-50, statistical evidence would convince 22% more people. (Allen & Priess 1997) (See Persuasive Advertising, p.146 for evidence)

A combination of narrative and statistical evidence was found to be more persuasive than either alone in an experimental study (Allen et al 2000).

Provide quantitative evidence (6.3.1)Adprin.com

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Offer verifiable evidence (6.3.2)

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Arguments that provided sources were more persuasive for 17 of the 23 comparisons and increased credibility in 7 of 11 comparisons. (O’Keefe’s 1998 meta-analysis)

Few advertisers use verifiable evidence. A meta-analysis of 60 studies found that only 4%of ads in all media provided research support. (Abernethy & Franke 1996)

This principle also applies to management reports, resumes, and to claims in meetings. (See Persuasive Advertising, p.147-148 for evidence)

Apply to Ansett NZ problem? Write your thoughts in your learning diary. Adprin.com

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Helping people who are suffering from a rare disease

A. ___ Would you donate to a fund when a sudden outbreak of a rare but horrible disease has threatened the lives of 20 people across the U.S., and all these people can be saved if treated properly?

B. ___ Would you donate to a fund when a sudden outbreak of a rare but horrible disease has threatened the lives of half of the 40 residents of a village in Vermont, and all these people can be saved if treated properly?Which cause received more donations? Write your prediction

in your learning diary.

The way that you present data has a big effect on persuasion. In the above study by Fetherstonhaugh (1997), donations were much higher for B because they were a higher percentage of those helped.

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Using percentages to persuade“In patients with type 2 diabetes, Lipitor reduces risk of

stroke by 48% [see side effects].”“In patients with type 2 diabetes, Lipitor reduced the risk of

stroke from 2.8% for a placebo versus 1.5% for Lipitor [see side effects].”

1,000 people were surveyed on what “40 percent” means: respondents said, (a) one-quarter, (b) 4 out of 10, or (c) every 40th person (Gigerenzer 2002)

About 1/3 of the respondents provided an incorrect answer.

Implications for advertising? (See Persuasive Advertising, p.148-149 for evidence)

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To aid understanding, use absolute numbers for small values and frequency rates for large values (6.4.1)

Also, avoid relative percentages.

Is it ethical to select base rates that make the effects look large, as in the Vermont case on a rare disease above?

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The Federal Budget in Dollars

Tax revenue: 2,170,000,000,000Fed budget: 3,820,000,000,000New debt: 1,650,000,000,000National debt: 14,271,000,000,000Recent budget cuts: 38,500,000,000

What actions would you recommend? Write them in your learning diary.

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A household budget in dollarsAnnual family income: 21,700Money the family spent: 38,200New debt on the credit card: 16,500Outstanding balance on the credit card: 142,710Recent budget cuts: 385Recommendations? Write them in your learning diary.

Suggest a principle to avoid misunderstanding.Note that the numbers are the same as on the previous slide except that 8 zeros were removed.

Do not use large numbers. (Armstrong & MacGregor 1994)Adprin.com 24

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Improve this tableUser ratings on excellence

Our brand 65%Brand B 25%Brand C 45%Brand D 37%

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User ratings on excellenceBrand % Ours 65 C 45 D 37 B 25

Use simple tables or graphs if you have substantial amounts of data (6.4.2.)

Reduce ink, not information.Organize to support message.This applies to management reports and brochures. Any applications for your organization? (See Persuasive Advertising, p.149-150 for evidence)

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6.5.1 – Customer endorsements – Electric hairbrush – Complies

Note: Endorsements have a long history. This ad is from 1884.

“My hair was falling out and I was rapidly becoming bald, but since using the brush, a thick growth of hair has made its appearance.”

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6.5.1 – Customer Endorsements – Successful Application

Legal Zoom (0:32) – complies but fails on music

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Testimonials by typical customers are persuasive

Analysis of 30 TV commercials spokespersons who were "real consumers” rather than actors produced:20% higher recall and 10% higher persuasion

Other non-experimental studies add support.But overall, evidence is not strong (See PA p.151)Possible applications to Ansett NZ or to your

organization? Write your thoughts in your learning diary.

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When should avoid celebrities?

When an ad contains strong arguments, avoid the use of celebrities (6.6.1)

Kaikati (1987) reports on a non-experimental study of TV commercials showed that customers understood :

2.4 selling points for ads with no celebrities1.4 points for ads with celebrities. (See Persuasive 

Advertising, p.152 for evidence)

Analyses of non-experimental data on TV commercials found that those with celebrities had lower persuasion scores.

Apply to your company? 30Adprin.com

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“If you have nothing to say, have a celebrity say it.” Old saying

Celebrities are not commonly used in ads:

4% of TV commercials for fast-moving consumer goods used celebrity endorsements (Stewart & Furse 1986).

6% of 480 full-page print ads by leading US firms, used celebrity endorsements (WAPB).

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Consider celebrity endorsements for gaining attention (6.6.2)

Good match (celebrity/target market/product)Good image/trustworthy

Analyze ROI for use of celebrity

Seldom done in practice (See Persuasive 

Advertising, p.152-154 for evidence)

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Violation of celebrity principle

Gates/Seinfeld “Bill Buys shoes” 1:31

An irrelevant celebrity renders an ad useless. This commercial, part of a series, had a short life and was judged to be a failure.

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Expert endorsements

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Consider support from an expert unless the target

market already agrees with the message. (6.7.1.)

Over 100 lab & field experiments support this principle although the condition based on ten experimental comparisons (O’Keefe 1987).Still advertising (print or Internet) is the primary media to use when there is expert support.

Successful example: In 1960, the American Dental Association (ADA) endorsed Crest’s claim that its fluoride prevented tooth decay. Crest’s market share went from 11 percent to 33 percent in a little over two years. (See Persuasive Advertising, p.155-156 for evidence)

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When

using

experts,

put them

early.

Create a good first impression by using credible experts.

So where should you mention the experts on your team in a management report? Write your answer in your learning diary.

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“Mention the name of a competitor and you advertise him; slander him and you do yourself no end of harm.”

George P. Roswell, advertiser (1894)

Prior to 1970, the U.S. Federal Trade Commission (FTC) discouraged comparative advertising.

After 1970, however, the FTC encouraged it.

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Pepsi & Coke science ad (0:45)

Use comparative advertising for brands that have clear comparative benefits and a small market share (6.8.1) – violates

The humor over-rides the message.

Also the ad would be funny if you substituted nearly any type of drink.

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6.8.1 – Use comparative advertising for brands that have clear comparative benefits and a small market share– Successful Application

Vista vs Mac (0:32) – complies

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Is comparative advertising good for consumers?

Customers do not like comparative ads.

However, comparative ads are more informative. Here are results for full-page magazine ads (Chou et al. 1987):

Pieces of informationNon-comparative ads 1.4Indirectly comparative 2.0Directly comparative 2.5(See Persuasive Advertising, p.156-157 for evidence) Adprin.com 40

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Is comparative advertising persuasive?

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___ a) no ___ b) somewhat ___ c) yesWrite your answer and reasoning in your learning diary.

Comparative advertising is very persuasive. It increased purchase intentions by 22%.Extensive evidence: based on 77 studies in meta-analysis by Grewal et al (1997). 16 additional papers with experiments on PA, p.336 under the “Grewal” entry.

Comparative advertising has grown rapidly in the U.S. and, more recently, in the EEC.

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When is comparative advertising most persuasive?

1. Problem-solving products2. High-involvement products3. Products with small market shareExample: Macintosh vs. Microsoft

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Use comparative advertising for brands that have clear comparative benefits and a small market share. (6.8.1)

1. Make the featured product dominate the ad.2. Use attributes that are important to the

consumer

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Compare the product withmarket leaders (6.8.2)

When the comparison was against the market leader, purchase intentions were 2.4 times higher than when it was against a non-leading competitor. (Based on a meta-analysis by Grewal et al. 1997)

An effective alternative is to use piecewise comparisons. (e.g., our brand is better than Brand A for feature x; better than Brand B on feature y; etc.) Source: Muthukrishnan et al. 2001 (See Persuasive Advertising, p.159 for evidence)

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Apple vs. Microsoft

Is this an effective ad for Apple? Write your thoughts in your learning diary.

Apple meets the conditions for using comparative advertising against Microsoft.

Microsoft should avoid comparative advertising.

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6.8.2 – Compare the product with market leaders– Avis –Complies

Note: Avis Rental Cars began its “We try harder” campaign in 1962. Avis’ market share went from 10% to 35% over the next few years. Adprin.com 46

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How to make comparative claims?

Advise an advertiser who wants to use comparative claims in an ad.

When making a comparative claim, provide objective support and offer it gently (6.8.3)

“There’s nothing stronger than gentleness.”Abraham Lincoln

Purchase intent was very strong but only when ads contained factual support (Grewal at al’s 1997 meta-analysis of 40

studies). Ads that took a positive approach were more persuasive.

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When should you use negative ads?• Cicero asked, “Can any man be a friend of someone who

has murdered so many citizens?” • The president of Yale University said that if Thomas

Jefferson were elected, “the Bible will be burned … and we may see our wives and daughters the victims of legal prostitution.”

• Lincoln was attacked as a “liar, thief and buffoon.”

Consider negative advertising when there is only one major alternative to your brand, the other brand has serious shortcomings, and total demand is not a key factor (6.9.1) (See Persuasive Advertising, p.161-162 for evidence)

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How to use attack ads

During the 2004 campaign for the U.S. presidency, the Guardian newspaper in England portrayed George W. Bush as a semiliterate ape and tried to persuade voters in Ohio to vote for Kerry.

Was that an effective strategy?

Attack ads should employ objective information, not emotion. (6.9.2) (See Persuasive Advertising, p.162-163 for evidence)

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Lemmings adEffective commercial?

Too negative.

Not objective.

Not supported by information.

This 1985 Super Bowl ad by the makers of “1984” was regarded as a big failure.

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McDonald’s uses red worms?

McDonald’s was rumored to be using red worm meat in its hamburgers. It was a strange rumor because red worms cost more than five times as much per pound as beef. Advise McDonald’s on their advertising strategy in your learning diary.

Respond to negative claims that are likely to become widely known (6.10.1)

Focus on the solution and avoid direct mention of the claim. (See Persuasive Advertising, p.164 for evidence)

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If you were Hertz, how would you respond to the Avis ads?

Write your ideas in your learning diary.

This is not easy; it took Hertz 4 years to respond, during which they lost much business to Avis.

When you finish, click here.

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6.10.1 – Respond to negative claims that are likely to become widely known - Complies

Though Hertz was slow to respond, in 1966, it managed to blunt the “We try harder” campaign with a campaign using ads such as the one above. (See Persuasive Advertising, p.163-164 for evidence) Adprin.com

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In Iraq, when the U.S. military uncovered cases of prisoner abuse at a prison, one officer advised going public immediately and tell how the problem was being resolved.

Was that good advice? Write your prediction and reasoning in your learning diary.

Yes. Unfortunately, they did not follow her advice.

Use a pre-emptive reply if you are sure that an attack is coming and if you have a good reply. Modest evidence summarized on PA, p. 164

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Puffery is widely used. Is that a problem?

“Ponds Cold Cream keeps skin soft and young.”

58% of 1,059 TV commercials used puffery (for fast-moving consumer goods) (Stewart & Furse 1986).

Puffery is believed. (Non-experimental study.)Does puffery enhance the customers’ experience?Consider mild puffery. (6.11.1.)

Source: Marks & Kamins 1988

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The Pants Suit

An individual sued a dry cleaner in Washington DC for $54 million because he was not satisfied with the $10.50 alteration of his suit pants. The sign said “Satisfaction guaranteed.” The individual who sued lost, but due to legal costs the family lost their business and had to move back to Korea.

• The FTC stated in 1984 that puffery does not warrant enforcement action.• Since the mid-1990s, U.S. consumers have had the burden of proof of showing damages. Have they ever won? Apparently not. Adprin.com

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When should you use questions?

Use product-related questions only if you have good answers (6.12.1)

Applies to low-involvement products only because it leads them to think about the arguments. For high-involvement, people were already expecting to evaluate, so a statement worked better than a question. (Petty et al 1981.)

Ads with questions and good answers had 1.4 times higher recall (Quasi-experimental data on 13 pairs of WAPB print ads. See PA, p. 167)

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RepetitionIf an ad keeps repeating something that is false, will

you start to believe it? ___Yes___NoWrite your answer and reasoning in your

learning diary.

“A lie told often enough becomes the truth.”Lenin

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Belief increases for low-involvement products

A lab experiment used different levels of repetition for 30-second TV commercials for three high-involvement and three low-involvement products.

Repetition increased purchase intentions for the low-involvement products, but not for high-involvement ones. (Batra and Ray 1986 in Persuasive Advertising p 168.)

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Repeat key points over time for low-involvement products, credence products, or products with strong support

“Oft-repeated advertisements…almost become friends which many readers like to see.”  Daniel Starch 1914)

Repetition spaced across time is more persuasive than repetition within an ad; people forget the messages are coming from one source.Space repeated claims (6.13.1.)

Much experimental evidence. (See PA, p. 168-9)

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Space repeated claims (6.13.1)

Spaced over decadesAdprin.com 65

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How to use repetition

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Scott Armstrong relates his story: “It was very early morning in an airport in Spain. I decided to ask an agent for a better seat assignment.” She said, “Do you like American cheese?”“What?” I said. She repeated the same thing. That did not help.

What she actually said: “Do you like emergency seats.”

Consider cosmetic variations rather than exact repetition (6.13.2)

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Use substantive variations when arguments are strong (6.13.3.)

Substantive variation will lead people to think more about the arguments.

However, under high involvement, people think about the arguments, so do not repeat weak arguments.

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Use a calm tone when repeating benefits, features, or arguments

Do not “shout.” Avoid strong emphasis in oral and written copy.

Space the repetition throughout the ad, especially for high-involvement goods. Close repetition seems aggressive. Google AdWords prohibits repetition with no spacing.

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Use subliminal messages only if the customer is warned (6.14.1.)

Otherwise, subliminal advertising is ineffective and unethical. (See Persuasive Advertising, p.171 for evidence)

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Use mnemonics (memory devices) when customers will be purchasing at a later time (6.15.1)

Mnemonic devices were positively – and strongly—related to recall of brands and to comprehension and persuasion. (Analysis of 1,059 TV commercials for fast-moving consumer products by Stewart & Furse 1986). Recall was 3% higher and persuasion was 8% higher when verbal mnemonics were used than for the typical ads in this sample. (Analyses of 1,513 thirty-second TV commercials tested by Ipsos ASI) (See Persuasive Advertising, p.172 for evidence) Adprin.com

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Encourage customers to tell (or ask) others about the product (6.16.1.)

Subjects who expected to tell others changed their attitudes more, and the change was still apparent when measured eight to twenty weeks later. (Four experiments by Boninger, et al 1990)

This principle also applies to people who are trying to learn something – such as how to persuade people.

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6.16.1 – Encourage customers to tell (or ask) others about the product. This famous 1925 ad complies.

Note: Many advertisers encourage people to tell others – and often convince themselves in the process. Provide interesting and memorable information.

“Ask the man who owns one.”

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“Drink Coca-Cola” ads from 1917-1951

“The command relieves the one commanded from the trouble of making up his mind. It makes up his mind for him, and so makes action easy.” Walter Dill Scott, early 1900s.

Ensure action steps are clear and specific (6.17.1) (See Persuasive Advertising, p.174 for evidence)

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Applying the principle

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Improve this action step:

“Please don’t litter.” Write your ideas in your learning diary. Then click for a possible solution.

“Please don’t litter. Dispose for recycling in the green trash can located in aisle one.” This increased proper disposal from 9% to 30%. (Geller et al. 1977)

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“He who agrees against his will is of the same opinion still.”Samuel Butler, late 1800s

Use a gentle call for action for high-involvement products (6.17.2)

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6.17.2 – Use a gentle call for action for high-involvement products— Complies

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Persuade someone to buy crystal glassware

Which appeal do you suggest - and why? Write your answer in your learning diary.

___ a) “This shows good taste; it is truly a classic design.” ___ b) “This particular style has a charm all its own.”

Most selected “b” in a small experiment. (Clee & Wicklund 1980)

Use gentle call for action for high-involvement products

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When using an explicit action step, make it immediate, easy, and low risk. (6.17.3)

Experiment offered free car wash for:___ Group A: 8 stamps___ Group B: 10 stamps but two were stamped alreadyResults: “B” redemptions 1.8 times higher(Nunes & Dreze 2006). Easy and immediate because the first 2 steps are already completed.Recall for the easy-action ads was 1.2 times higher than for the matched ads (quasi-experimental data for 43 pairs of WAPB print ads; PA, p. 177)

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Easy action step

Volkswagen’s Fun Theory (Bottle bank) 1:37

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Example of an effective use of easy action steps

Bose, in their Wave radio ads, allows customers to purchase by mail, fax, toll-free-800 phone call, or web site.

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Many advertisements fail to provide easy action steps

Of 480 ads from WAPB, only 23% provided easy action steps; PA p. 177).

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Show that the action step is not risky

“Since landsend.com went live in 1995, there has never been a confirmed use of fraud reported by our customers as a result of a credit card purchase made with us.”(See Persuasive Advertising, p.176-177 for evidence)

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Cup-Cake prediction case

___ a) The Control Group: Offered a cupcake and two cookies for $.75.

___ b) The “That's-Not-All” Group: Told that cupcakes were $.75. At this moment, a second experimenter said “wait a second,” and had a brief exchange. The first experimenter then announced that the price also included two cookies.

40% of those in “a” bought a cupcake.What percentage bought in “b”? ______ Write your predictions

in your learning diary.

73%, but there were failure to replicate. What are the key conditions? Source: Burger et al 1999)

Consider a bonus to a good offer when customers can respond quickly. (6.17.5)

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Application session

Allow time to apply the principles from this session to the Ansett case in your learning diary.Alternatively, apply them to your ad or to an ad by your organization-- or to a management report.

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Techniques

In your diary, describe the techniques that you were able to use for the Ansett Airlines case and rate your success (e.g., creativity, objective setting)

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How Ansett gained believability

Once you have your campaign ideas for an Ansett TV campaign. Click on the link below.•Ansett Airlines

Did you use any of their ideas? Rate your proposal against their Award Winning Campaign.

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How did Ansett obtain their deas about good service?

1. Write how you would have obtained actual examples of better service? Write your answers in your diary.

2. Are the ideas used by Ansett believable? How could you increase believability? Write your answers.

3. If you were a competitor and you believed that the examples were not real, what would you have done? Write your answers.Go to next page for the answers

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Answers to Ansett believeability questions

1. a) ask airline personnel, b) ask passengers to report good things on a follow-up survey, c) Ask agents to get details when customer have a good experience, d) run a contest.

2. It helped that the ads provided sources – names and locations of the customers. (Easy for people to check that these were real people).

3. Contact the sources to see if the people are real and that the event was true.

Ansett took the actions indicated in Bold above.

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Follow-up: Complete prior to next session

1. ___ Go through this lecture on your own (It is on the Educational Materials page)

2.___Study Persuasive Advertising pages 143-179 and record your reading time in your learning diary. Highlight techniques that you want to apply in yellow.

3.___ Complete the End of Chapter Questions for “Acceptance” and check your answers against PA.

4.__ When you have completed all steps, check your approach against Ansett Airlines’ approach on the next slide.

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How they gained believability

Compare your ideas with those used in their award winning campaign. See next slide. How many of their principles did you use?

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Advice on learning

One study found that fewer than 10% of students were successful in applying new knowledge.•This went to 20% if they actively applied what they were taught during a class session.•It went to 90% when they worked with a learning partner and coached each other.

Select techniques to apply

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