Week 4

1) Explain the positive effects of celebrity endorsement, first by using the theory of classical
conditioning and then by using the theory of schema.

Marketing with celebrities provides opportunities to increase the appeal of an advertisement and
the product offered.
When celebrities endorse a product, they transfer some of their own personal traits and values
onto that product. The answer to why and how celebrity endorsements create a positive effect can
be explained with the help of theory of “classical conditioning”.
It helps to understand the process of associative learning and how consumers create associations
between celebrities and brands.
Classical conditioning is used to influence attitudes based on low effort. It is defined as producing a
response to a stimulus by repeatedly pairing it with another stimulus that automatically produces
this response.
 An Unconditioned Stimulus: A stimulus that automatically and naturally produces a
response
 A Conditioned Stimulus: A neutral stimulus that does not naturally produce a response
 A Conditioned Response: A response created when pairing the unconditioned and
conditioned stimuli together.

So, when a celebrity (unconditioned stimulus) endorses a brand (conditioned stimulus), it creates a
(hopefully) positive response about that brand (conditioned response).
Celebrity (US) -> Brand (CS) -> Positive response (CR)
For example, when Jennifer Aniston (US) endorses a perfume (CS), people consider the qualities of
Jennifer Aniston with the perfume. Aniston is considered one of the sexiest women on the planet,
powerful, and likeable. If Aniston is endorsing a perfume, women (who view Aniston as a likeable,
strong, attractive personality) in turn attribute those qualities to the perfume and tend to buy it (CR).
Risk:
 Negative publicity could arise if a celebrity becomes part of a scandal or some other negative
event.
 However, using celebrities (victims) involved in negative situations when there is low or no
blame can actually help the company.
Lauded American cyclist Lance Armstrong has recently faced more serious allegations regarding
steroid use between 1999 and 2005. As a result, Nike had to distance themselves from Armstrong,
even releasing a statement in October of 2012 indicating, “Nike does not condone the use of illegal
performance enhancing drugs in any manner.”
Another method to understand the positive effects of celebrity endorsements is with the help of
theory of schema. Schemas can be defined as cognitive structures representing one’s beliefs and
expectations about objects, persons, events and situations based on prior knowledge. Theory of
schema explains the congruence between the celebrity’s perceived image and the product’s they
endorse. For example; When we see Gigi Hadid endorsing Maybelline products we immediately
build a structure of thoughts in our mind where we think of beautiful skin, high quality finish, and
due to Gigi Hadid being a model it can be believed that she uses the product herself. Consumers thus
believe that celebrity endorsed products will make them better off rather than normally advertised
products.
Overall advantages:
 increased awareness of the brand/ product name
 increased purchase intentions (PI
 Consumers believe that the brand is reliable and successful
  Celebrities can affect the feelings and persuade them
 Consumers forget 80% of info in ad but will always remember the celebrity
(b) Explain the positive effects of brand (product) extension, first by using the theory of classical
conditioning and then by using the theory of schema.

Brand Extension is the use of an established brand name in new product categories. This new
category to which the brand is extended can be related or unrelated to the existing product
categories. A renowned/successful brand helps an organization to launch products in new categories
more easily. For instance, Nike’s brand core product is shoes. But it is now extended to sunglasses,
soccer balls, basketballs, and golf equipment.

If the customers of the new business have values and aspirations synchronizing/matching those of
the core business, and if these values and aspirations are embodied in the brand, it is likely to be
accepted by customers in the new business.

Let’s understand brand extension by taking the example of Mars chocolate and explain with the help
of classical conditioning theory. Mars is no longer a famous bar only, but an ice-cream, chocolate
drink and a slab of chocolate.

For people who have tried the original mars bar and liked it, trust the brand image and know that
their products taste good and have a high quality. So, when mars extends its product range to ice-
creams, people relate it with the parent brand, which increases consumer interest and willingness to
try new product.

Thus, parent brand Mars is the US, mars ice-cream is the CS, and customer’s increased willingness to
try the new product is the CR.

Now, let us take the example of Colgate extend its product line to ready-to-eat refrigerated meals. I
will explain this with the help of theory of schema. Whenever we think of Colgate, we associate it
with sparkling white and stronger teeth, minty taste, burst of mouth freshness, etc. But when we
hear of food products with the parent brand Colgate, our brains cannot relate the two or maybe
relate it in the wrong way by assuming that its food products might taste minty as well. This was a
major product extension failure by Colgate and it should have thought of the associative and
schematic model that exists in the consumer’s mind, before launching its extension.

Another example: Cosmopolitan yogurt

Overall advantages:

a. It makes acceptance of new product easy

b. It increases brand image.
c. The risk perceived by the customers reduces.
d. The likelihood of gaining distribution and trial increases. An established brand name
increases consumer interest and willingness to try new product having the established brand
name.
e. The efficiency of promotional expenditure increases. Advertising, selling and promotional
costs are reduced. There are economies of scale as advertising for core brand and its
extension reinforces each other.
f. Cost of developing new brand is saved.
g. Consumers can now seek for a variety.
h. There are packaging and labelling efficiencies.
 i. The expense of introductory and follow up marketing programs is reduced.

(c) Evaluate which theory (classical conditioning or schema) is better in explaining these two
marketing phenomena (i.e., celebrity endorsement and brand extension). Why? Support your
argument with examples.

For explaining celebrity endorsements theory of classical conditioning or behavioural learning theory
is the most suitable and apt. This is because behavioural theory is based upon the idea that all
behaviors are acquired through conditioning, via interaction with the environment. It emphasizes
on learning a new behaviour by watching someone do it. Thus, when we see a celebrity endorsing a
product, we immediately connect with it and assume that the celebrity uses this brand personally or
the value attributes of the celebrity are also related with the brand. Behavioural learning also uses
visual or verbal prompts to trigger desired responses. Thus, celebrity endorsement is best explained
through classical conditioning, i.e by using a conditioned stimulus to develop a conditioned
response.

Eg: Jessica simpson for proactive, Angelina Jolie for Louis Vuitton

On the other hand, brand extension is best explained with the help of schema or cognitive learning
theory. Schema theory is mental representation of brand. Cognitive psychology is the study of
mental functions like learning, attention, memory, reasoning, perception and decision-making. The
focus of theory of schema is in researching the acquisition, processing and storing of information in
the mind. When we think of a new product extension we use the information already stored in our
brains about the parent brand, connect it with the new product, develop a perception and finally
decide whether to purchase the new product or not. Example: Colgate toothbrush

2) a. What methods can marketers use to enhance the encoding of consumer memory? Please
provide examples.

Chunking – Marketers can increase the likelihood that consumers will hold information in short term
memory and transfer it to long term memory by providing larger bits of information that chunk
together smaller bits. For example: KFC, BMW, IBM, H&M, 13CABS

Rehearsal – When motivation is low, use tactics such as jingles, sounds, slogans to instigate
rehearsal. Eg Mcdonald’s I’m lovin’ it. Kit-Kat Give me a break.

Recirculation – strengthen the effect of recirculation by creating different ads that repeat the same
basic message and brand name frequently. Iphone X print ads

Elaboration – transferring information into long-term memory by processing it at deeper levels.

Ability to elaborate may vary across individuals. Older people have less ability to elaborate on
information from marketing messages, perhaps because their working memory is more limited.
Children may elaborate less because they have less knowledge. More enduring memory is
established when we try to relate information to prior knowledge and past experiences. Example:
automakers display their cars in front of mansions, brewers show their beer consumed by groups of
friends having fun and cosmetic companies sign celebrities to represent their products

b. What are the potential downsides of using repetition in TV commercials to enhance consumer
memory? How can marketers minimize these downsides when using repetition?
Repetition is used in advertising to keep a brand or product in the forefront of consumer's minds.
Repetition can build brand familiarity, but it can also lead to consumer fatigue, where consumers
become so tired of an ad that they tune out or actively avoid the product. The disadvantages of
using repetition in TV commercials could be as follows:
 Annoyed and irritated customers example : direct mail requests for contribution to
charities
 Cause confusion - it can cause consumers to confuse a brand with its competitors, especially
in a market where brands offer similar product benefits
Example : Everybody is aware of the pink bunny charged by batteries that keep going and
going – but are the batteries Energizer or Duracell? 
 Bored with a stimulus – After a certain point, consumers experience wearout, which means
that they become bored and brand attitudes can become negative.
 Brain reaches saturation level and stops accepting any new information as soon as it hears
the same repetitive ad again
 Avoidance of the product
 Eventually no effect on purchase intention or attitude – deterioration of ad’s persuasive
power
Therefore, to be effective, repetition must occur in the right proportion, as too much repetition may
be counter-productive as an advertising strategy.
The two-factor theory, or wear-in/wear-out, suggests that repetition has a positive effect for a
period, and then begins to have a negative effect.
During the first phase, called wear-in, repetition of an ad allows consumers to become familiar with
the brand. In this phase, repetition can overcome consumer reluctance to purchase a new product
or brand. As the repetition continues, consumers become used to the brand and may enter a second
phase, called wear-out. In the wear-out phase, consumers become tired of hearing about the brand
and continued repetition of ads can cause consumers to stop buying the product or brand.

Marketers can overcome these downsides of repetition by using the following strategies:
 Creating different executions for the same message or variants on the same offering.
 Develop series of ads rather than a single execution. Example: Indian tourism department
keeps launching a series of ads titled ‘Incredible India’ by showing various tourist places in
India.
 Add a suspense element by adding ‘to be continued…’ versions of the ad that help build the
curiosity and audience looks forward for the upcoming ad.
 Adding creativity and humour - communicates a simple idea in a creative and memorable
way -- and you don't feel like you're being nagged, the way some public service
announcements do. If your subject matter is grim or boring, consider using creativity to get
your message across.
 Personally relevant
 Puzzles, mysteries
 Presenting messages at a time of the day when consumers are least likely to be distracted.
 by changing its delivery (from visual to audio) place the product or brand in as many places
as possible. For example, print ads in newspapers and magazines, television ads, radio ads
and utilize product placement on television shows or in movies. Eg: Pepsi

c. Which types of product are more/less suitable to use repetition in their ads?
New products - repetition may be more effective when it is used to advertise a new brand or
product. Once consumers are familiar with a brand or product, the advertiser may be able to
decrease the frequency of the ad and still achieve the same effect. Eg Samsung s10

Daily products – more

About products whose benefits are underestimated or unknown

For products that need to win customer’s trust