SYNTHESIZING RESEARCH ON ADVERTISING TECHNIQUES

 The economic principle I researched was, “People generally respond to incentives in predictable ways." My overall research question was, “Are consumers significantly influenced to buy things from advertisements?” Overall, I found that Advertisements surprisingly have a stronger effect on you than you realize. 

 From my research I found that yes advertisements do have a strong effect on the viewer. This is attributed to a few things such as how easy it is for the audience to relate to the product and how relatable the advertisements is. First off companies try to tie their brands to a specific lifestyle. For example Coca Cola advertises their brand to families because everyone can relate to it. Another very successful example is Red Bull because every year they host extreme sporting events in their name. They give the contestants free Red Bull to drink, and the fans makes the correlation in their brain that people who are good at skateboarding or motorcross drink this product.

 Second companies use extensive information about their product in order to sell more. This for example is explaining to the viewer what their product can do, and why it is better than the competition. Companies nowadays may use sponsored youtube videos. The reviewer will tell their audience everything good and bad about a specific product, and this will influence many people to buy their product. This is opposed to that of advertisements from the last century where companies would just say their name and what they are selling. This helps the company establish ethos amongst all of their competition.

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The economic principle I’m exploring is “People generally respond to incentives in predictable ways.”

My research question to help me study the economic principle is “Does experimental marketing have a greater influence on consumers?”

The article published in Psychology Today titled, “More Effective Advertising” demonstrates this economic principle by arguing that experimental marketing, experience, and physical interaction play a pivotal role in better marketing and advertisements.

First, many companies may choose to use experimental marketing because it allows for people to experience their product in a completely new way. If you see a product on television you may just ignore it because you don’t exactly see how beneficial it may be. For example having a store on every corner will have consumers automatically assume that you have a great product. “According to CEO Howard Schultz, the reason that Starbucks doesn’t need to rely just on advertising is that it is in ‘over 16,000 neighborhoods around the world, in more than 50 countries, forming connections with millions of customers every day in our stores, in grocery aisles, at home, and at work.’”

Second, experience marketing is giving out free product to get your name out their and it allows people to how great their product is. This marketing strategy allows consumers to automatically associate your product with a certain action and this has worked very well for a company like Red Bull. According to Psychology Today Red Bull did the following, “The foolproof branding plan was to give hip, young, and influential college students free cases of the energy drink and encourage them to throw their own event, a lucrative tactic that cost the marketer next to nothing.”

Third, physical interaction may have a large impact on consumers. It allows consumers to touch, taste, or experience the product. This is a very impactful marketing strategy because now a consumer would already know that your product is good and therefore have a stronger inclination to purchase it. Psychology Today says, “We learn best by doing. That’s in part because your brain encodes the experiences more deeply through all 5 senses so they are more likely to become purchase habits that become second nature to you.” In my next blog post

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The economic principle I’m exploring is, “People generally respond to incentives in predictable ways.”

My research question to help me study the economic principle is, “Do lifestyle ads work more effective than traditional ads”

The article published in Medium titled, “What it Actually Means to Build a Lifestyle Brand” demonstrates this economic principle by arguing that creating an identity, building importance, and interaction between community members works far more effectively than traditional advertisements.

First, this article argues that creating an identity is very important for new brands as it allows consumers to exclusively purchase their good. This simply means that if you own X company you want your clients to focus part of their life around your product. This for example could be Starbucks because most of their customers drink their coffee everyday at the same time. Medium says, “Regular brands use identity and subculture as temporary means to greater ends; they’ll create shorter-term campaigns that hone in on an audience’s interests/lifestyle to achieve broader goals, such as household penetration or market share growth.”

Second, advertisements that focus on the importance of their product often times have the greatest impact on the audience. This plays an important role in advertisements because it associates a specific product with a specific end result. For example if you make energy drinks you want to tell your consumers that your drink will make them more alert and have increased productivity. This means that whenever a consumer is feeling tired they will remember that your product will make them more alert and have increased productivity. Medium says, “Take Coca Cola’s 'Taste the Feeling' campaign, for example. They clearly position their product at the center of emotional narratives, but more for the purpose of tying it to universal moments than a particular lifestyle or activity.”

Third, advertisements that cultivate interaction between consumers will have a greater impact. This basically means that if a company like Vans were to host a concert, liked Warped Tour, this would cultivate interaction between the consumers. This makes consumers associate shoes to having a good time with friends, and it is actually very impactful. Medium states, “When you think of Harley Davidson, a more distinctive community of motorcycle riders should come to mind. They’ve cemented their iconic lifestyle brand status by uniting Harley riders; the brand famously hosts meet-ups for bikers around the nation, creating brand associations with friendships, rather than just motorcycles.”

 In my next blog post I will research the question: “Does experimental marketing have a greater influence on consumers?”

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The economic principle I’m exploring is, “People generally respond to incentives in predictable ways.”

My research question to help me study the economic principle is, “Do people realize that advertisements have an effect on them? And do advertisements work unknowingly?”

The article published in Psychology Today titled “What Does Advertising Do” demonstrates this economic principle by arguing/showing advertisements work without you realizing it, advertisements use basic human psychology to influence consumers, and even if you tune out an advertisement you will still be affected.

First, many advertisements work without you even realizing it. Companies know this so they use eye catching images with their brand name prominently promoted to just get their company name in your head. For example if you see an advertisement for a pen company you may tune it out, but now your brain associates pens to X company. So the next time that you are out shopping for pens you will purchase theirs just because you have that connection. A study was conducted studying the connection between viewing an advertisement and whether or not you will purchase the good. The study results are as followed, “The people who went through the affective conditioning procedure picked the pen that was paired with positive items 70-80% of the time.” This means that someone will buy your item 70-80% of the time just because your brand name is associated to that good. The implementations of this are endless because companies that devote many of their resources to advertisements will make much more money.

Second, companies use basic human psychology to make their advertisements as impactful as possible. Whenever you view an advertisement you are often greeted with bright colors, large logos, and happy people enjoying their product. It gets to the point that someone is on the verge of crying tears of joy over how wonderful their laundry detergent cleans their cloths. This stays with your thought because you will associate X brand with happiness. The author Art Markman Ph.D. says in his article that, “If we have to make a choice, and one of the options just feels good to us, then we are likely to go with the one that feels good.” This means that just because something looks and feels good that we will buy it. This is just like all the Coke ads you see whether the paid actor is smiling and drinking a can of sugar syrup. This means that we do not have as much free will when it comes to purchasing as we may believe.

 Third, you will be affected by advertisements even if you think you are tuning them out. This relates to the previous paragraphs, but I feel that this needs to be looked into in more depth because of just how powerful advertisements truly are. It is kind of scary to think of how easily manipulated the average consumer is. The author Art Markman Ph.D. says, “Over the two studies in this paper, the authors found that people chose the pen that was paired with positive objects even when people were given as much time as they wanted to make a choice, and even when the instructions specifically encouraged them to pick the best choice and to say why they were choosing a particular pen.” This basically means that the average consumer has no power over what they are purchasing even when presented with free choice.

In my next blog post I will research the question: Do advertisements that focus on life style work better than traditional advertisements?

Do Advertisements Really Work On People?

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The economic principle I’m exploring is “People generally respond to incentives in predictable ways.” 

My research question to help me study the economic principle is “Do advertisements really work on people?”

The article published in The Atlantic titled “A Dangerous Question: Does Internet Advertising Work at All?” demonstrates this economic principle by arguing/showing that ads work by endogeneity, people may not be paying attention to advertisement, and we would rather buy something it based on information rather than marketing.

First, many people who are influenced by advertisements do not truly know that they are being influenced to buy a product. People may think that “I was already going to buy that” when they see an ad and this phenomena is called “endogeneity.” This is important because most advertisements we see in 2019 are either on a website or on television, and we pay little attention to it. Also they work because we do not realize they work.

Second, many people who see advertisements online or on television will tune them out and not pay very much attention to them. This could mean that advertisements are now losing their effect because people would rather use an adblocker when on the internet, or skipping ads on their television. This means that advertisements would have to leave a greater impact on the viewer.

Third, people are most likely to buy a product based on information rather than someone telling them to buy the product. This could either be a review from a credible person, or a specification list listing all of the products capabilities. This means that old advertisements that say "buy our food" will not work anymore, and instead a "customer" saying how great their food is would leave a greater impact.

 In my next blog post I will research the question: Do advertisements that focus on life style work better than traditional advertisements?

Are Consumers Significantly Influenced to Buy Things From Advertisements?

• The economic principle (Links to an external site.)Links to an external site. I will explore is People generally respond to incentives in predictable ways.
• The overall question I will research to help explore the economic principle is Are consumers significantly influenced to buy things from advertisements?
• 3-4 subquestions that will help me answer my overall research question are: 
  •   Do advertisements that focus on life style work better than traditional advertisements?
  •   Do advertisements really work on people?
  •   Do people realize that advertisements have an effect on them?
• Links to 3-4 reliable resources that can help answer the research question:
  • Adamsmith
  • Sapling
  • Economics Key