Hierarchy of effects model

From CEOpedia | Management online
(Redirected from Hierarchy of effects)

Hierarchy of effects model (or so called AKLPCP Lavidge and Steiner model) is one of the models for customer response hierarchy to the various forms of media advertising. The model is based on the concept of conscious learning, where the potential customer (the person characterized by significant commitment to obtain product information) meets his needs by buying the best available product. It assumes that target group of customers is heavily involved in a given product category, however, they see product differentiation within the category as non existent.

Assumptions

The fundamental proposition for most models of reaction hierarchy is that the impact of advertising on potential customers is gradual process which comes down to three basic phases: cognitive (perception), emotional (information processing) and behavioural (actual buying decision). The sequence of stages is always the same, end there are strong causal links between them.

Hierarchy of effects proposed by Lavidge and Steiner assumes that the consumer can pass through some stages faster, slower, or can also move through several stages at once, as each phase of the hierarchy must not be separated from each other by identical time distances. The model also assumes that the buyer first gaining knowledge of the desired product, then under the influence of the information shapes his attitudes and perceptions about the product, and finally decide whether to buy or not.

Fig. 1. Hierarchy of effects model

Model construction

Hierarchy of effects include six successive stages of forming the acronym AKLPCP:

  • Awareness - The task of the advertising message sender is to build awareness of the subject (or at least ability to recognize a particular brand) among a large part of the target group, if there is no such previous awareness. This objective can be achieved through simple messages, which will repeat product or brand name.
  • Knowledge - The target group in addition to awareness of product existence must have adequate knowledge about it. The advertising message sender must verify the degree of knowledge possessed by the audience. In the case of a small knowledge of the product, the sender can decide that the primary purpose of the communication process will be to build knowledge of the product.
  • Liking (fondness, delight) - Sender should check what emotions are aroused by the product among consumers who know about it. In the case of the negative opinion, sender's job is to understand the reasons for this condition.
  • Preference - The product can appeal to the target audience on a par with other items available on the market (i.e. offered by competition). This situation requires the sender to try creating a consumer preference for its product. This objective can be achieved by promoting quality, values, performance indicators and other relevant characteristics of advertised product. The success of the advertising campaign can be monitored by measuring the preferences of customers after its completion.
  • Conviction - The product may be preferred by the target group, which, however, is not convinced to purchase it. The advertising message sender is required to create the belief among consumers that the advertised product is the best choice possible.
  • Purchase - Part of the target audience can be convinced to the product offered, but not fully ready for making actions necessary for its acquisition. Potential buyers can wait for additional information, or decide to postpone purchase decision in time. Sender's task is to bring the audience to make a decision via price reductions, promotions, the opportunity to try the product before buying.

Examples of Hierarchy of effects model

  • A classic example of the Hierarchy of Effects model is the consumer-buying process. In this model, the consumer is viewed as progressing through several stages before ultimately making a purchase. The stages are: Awareness, Interest, Evaluation, Trial, and Adoption. The consumer must first become aware of the product, develop an interest in it, evaluate it to determine if it meets their needs, try the product, and then finally adopt the product as the best option.
  • Another example of the Hierarchy of Effects model is the marketing of a new product. Here, the goal is to move people from awareness to adoption. This may include advertising and promotional activities, such as sponsored events, giveaways, and coupons. Additionally, marketers may leverage influencers to help spread awareness of the product, as well as use social media to engage potential customers and demonstrate the value of the product.

Advantages of Hierarchy of effects model

  • The Hierarchy of Effects Model provides a step-by-step approach to understanding how customers make buying decisions. It helps marketers to better understand the process consumers go through when deciding to purchase a product.
  • It is a useful tool for designing effective marketing campaigns and developing strategies that target each stage of the consumer decision-making process.
  • This model helps marketers target the right audiences and determine the best message to reach them.
  • The model takes into account the different stages in the buying process and considers the various factors that influence customers’ decisions.
  • It is also helpful in understanding how different types of media, such as television, radio, and print ads, can be used to reach potential customers.
  • It provides a framework for understanding how different types of advertising can influence consumer behavior.
  • The model is also useful for measuring the effectiveness of a marketing campaign by tracking the responses at each stage of the buying process.

Limitations of Hierarchy of effects model

  • The model does not take into account the customer's prior knowledge, experience and attitude which can influence their decision making process.
  • The model does not account for the influence of external factors such as social media, word of mouth, and other forms of advertising which can influence a customer's decision.
  • The model does not account for the various stages of customer decision making such as awareness, consideration and purchase.
  • The model does not factor in the customer's perceived risk of the product and their feelings of loyalty towards the brand.
  • The model does not take into account the customer's financial situation which can have a major impact on their decision making process.
  • The model does not factor in the customer's cultural background which can influence their decision making process.
  • The model assumes that all customers are heavily involved in the product category, however, this is not always the case.
  • The model assumes that all customers are able to differentiate between products within a category, however, this is not always the case.

Other approaches related to Hierarchy of effects model

The Hierarchy of effects model is closely related to other approaches such as the AIDA Model, Means-End Chain Model, and Customer Journey Model.

  • The AIDA Model is a marketing communication model which stands for Attention, Interest, Desire, and Action. It is used to describe how consumers interact with advertising, by describing how they progress from a state of unawareness of a product to making a purchase.
  • The Means-End Chain Model is a psychological-based model which uses a hierarchical structure to represent the relationship between product attributes and benefits. It is used to understand the relationship between the product features and the customer’s desired outcomes or benefits.
  • The Customer Journey Model is a customer-centric approach which is used to understand and map out the various stages of a customer's journey with a product or service, from initial contact through to purchase and post-purchase activities.

In summary, the Hierarchy of Effects Model is closely related to other approaches such as the AIDA Model, Means-End Chain Model, and Customer Journey Model, which all focus on different aspects of the customer journey and how customers interact with advertising.


Hierarchy of effects model — recommended articles
AIDA model — Nicosia model — Consumer buying behaviour — Consumer decision making process — Relationship selling — Customer perception — Brand value chain — Customer equity — Sales techniques

References

Author: Krzysztof Wozniak

Retrieved from "https://ceopedia.org/index.php?title=Hierarchy_of_effects_model&oldid=91453"