5.3 Memory Processes and Consumer Decision Making

Memory plays a crucial role in consumer decision-making. It involves encoding, storing, and retrieving information about products, brands, and experiences. Understanding these processes helps marketers create more effective strategies to influence consumer choices.

Different types of memory, including short-term, working, and long-term, impact how consumers process and retain marketing information. Factors like attention, repetition, and elaboration shape memory formation, while strategies like sensory marketing and emotional appeals can enhance recall and brand associations.

Memory Processes

Stages of memory in decision-making

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• Encoding converts sensory information into a storable format in memory
  • Influenced by factors such as attention (focus on specific stimuli), interpretation (making sense of information), and elaboration (linking new information to existing knowledge)
  • Relevant to how consumers perceive and interpret marketing stimuli (advertisements, product packaging, brand logos)
• Storage retains encoded information in memory over time
  • Involves different types of memory systems, including short-term memory (temporary storage), working memory (active manipulation of information), and long-term memory (permanent storage)
  • Relevant to how consumers retain information about products (features, benefits), brands (image, associations), and experiences (shopping, service encounters)
• Retrieval accesses stored information from memory when needed
  • Influenced by cues (reminders), context (environment), and associations (related concepts)
  • Relevant to how consumers recall information during decision making (comparing options) and product evaluation (assessing satisfaction)

Types of consumer memory

• Short-term memory (STM) has limited capacity (can hold 5-9 items) and brief duration (lasts 15-30 seconds)
  • Holds information temporarily for immediate use (remembering a phone number before dialing)
  • Relevant to processing marketing stimuli in the moment (reading product labels, viewing advertisements)
• Working memory actively manipulates and processes information in STM
  • Involves executive functions such as attention (focusing on relevant information), planning (determining a course of action), and problem-solving (finding solutions)
  • Relevant to comparing product attributes (price, quality) and making trade-offs during decision making (choosing between brands)
• Long-term memory (LTM) has virtually unlimited capacity and long-lasting duration
  • Stores information, experiences, and knowledge for extended periods (years or even a lifetime)
  • Relevant to forming brand associations (linking a brand with certain qualities), product preferences (favoring specific attributes), and loyalty (consistently choosing a brand) over time

Factors influencing memory processes

• Attention selectively focuses on specific stimuli while ignoring others
  • Influences encoding by determining which information is processed (noticing a billboard advertisement while driving)
  • Can be captured through salient (prominent), novel (unique), or personally relevant (meaningful) marketing stimuli
• Repetition involves repeated exposure to information or experiences
  • Strengthens memory traces and facilitates storage and retrieval (remembering a catchy jingle after hearing it multiple times)
  • Can be achieved through frequency of ad exposure (seeing an advertisement across different media), product usage (regularly consuming a brand), or brand encounters (visiting a store or website)
• Elaboration involves depth of processing and meaningful integration of information
  • Involves linking new information to existing knowledge and experiences (associating a new product with a familiar brand)
  • Can be enhanced through storytelling (creating a narrative around a brand), personalization (tailoring messages to individual consumers), and interactive marketing techniques (engaging consumers in a dialogue)

Strategies for enhancing consumer recall

• Sensory marketing engages multiple senses to create memorable experiences
  • Enhances encoding and retrieval through multi-sensory associations (linking a brand with a specific scent or music)
  • Examples: distinctive product packaging (Coca-Cola's contour bottle), immersive in-store atmospherics (Abercrombie & Fitch's dim lighting and loud music), experiential marketing events (Ikea's sleepover party)
• Emotional appeals evoke strong emotions to create lasting impressions
  • Enhances encoding and retrieval through emotional connections and personal relevance (associating a brand with feelings of happiness or nostalgia)
  • Examples: heartwarming ads (Budweiser's Clydesdale commercials), humorous ads (Old Spice's "The Man Your Man Could Smell Like" campaign), cause-related marketing (Toms' One for One program)
• Mnemonic devices are memory aids that facilitate encoding and retrieval through associations and cues
  • Includes acronyms (KISS: Keep It Simple, Stupid), rhymes ("Beans, Beans, the Musical Fruit"), jingles ("I'm Lovin' It" by McDonald's), and visual imagery (Michelin Man)
  • Examples: memorable brand slogans (Nike's "Just Do It"), mascots (Kellogg's Tony the Tiger), product demonstrations (Shamwow's infomercials)
• Gamification and interactivity engage consumers through game-like elements and participatory experiences
  • Enhances encoding and retrieval through active involvement and rewards (earning points, unlocking achievements)
  • Examples: branded mobile games (Chipotle's "The Scarecrow"), social media contests (Lay's "Do Us a Flavor"), interactive product displays (Sephora's Virtual Artist app)