Persuasion and the ELM - Essay Example

Introduction Learning the art of persuasion is critical for a consumer organization precisely because it is the most important determinant of sales volume. The act of trying to influence, change or convince someone’s opinion to perform an action such as purchasing a product or voting for a candidate in election is known as persuasion (Encarta 2003). Understanding the mechanism underlying human persuasion has been the subject of several social and business studies with one of the more prominent framework developed being the Elaboration Likelihood Model of Persuasion (ELM). In this study, the principles of ELM shall be discussed in line with the management of marketing communications of Jacob’s Creek with respect to its red wine labels. The primary concerned is understanding and appreciating how ELM is significant to the promotional and advertising schemes of the consumer organization identified. It is also the aim of this study to identify improvements to the persuasion strategies based on ELM concepts through the identification and determination of important variables that facilitate a positive response (i.e. purchase and referral). Persuasion and the ELM According to Petty and Cacioppo (1986), the developers of the ELM, attitude change can occur via two routes of influence depending on the degree of information processing or elaboration. The first is the ‘central route’ where the process of attitude change involves considerable cognitive effort to scrutinize and evaluate the arguments of the message being communicated (i.e. high elaboration likelihood). This condition usually occurs when people processing the arguments are highly motivated, deeply concerned or highly able to process the subject. The other route, called ‘peripheral route’, is where attitude change occurs with minimal effort to evaluate and understand the merits of the arguments (i.e. low elaboration likelihood). This usually happens when there is minimal motivation for the person to go into details or when there is insufficient reference to draw upon. Many models using the basic principles of ELM have been developed by consumer behaviour researchers. High elaboration likelihood state has been termed as ‘systematic processing’ and the other state being called ‘heuristic processing/use of simplifying decision rules’ (Venkataramani Johar, Maheswaran, & Peracchio, 2006). According to Tam & Ho (2005, para. 18), systematic processing occurs when the person is knowledgeable and capable to assess the quality of the message. Chen & Lee (2008) describes people using systematic processing as ‘highly sceptical’ and that people do not necessarily need to be knowledgeable as being well-informed can be enough. Sher & Lee (2009) goes further with their observation that deeply integrated intrinsic beliefs and not well founded information can also govern systematic processing. A previous study conducted Williams & Kitchen (2009) also indicated that even highly cognitive consumers can take intrinsic shortcuts and resort to stereotyping especially if the message is almost similar to a previous positive experience. Sparks and Areni (2008) were also able to link high levels of elaboration and scepticism to knowledge of customer persuasion techniques employed during marketing communications. Heuristic processing, on the other hand, occurs when the person has no time to fully discern the intentions of the message being relayed or is overwhelmed by simple but appealing devices or a large quantity of argument. In the advertising industry, heuristic processing is induced through the use of peripheral cues that can elicit an affective state (such as happiness or patriotism) or trigger a simple inference such as the ‘experts agree on the message and experts are always correct’ scenario (Petty and Brinol, 2008). Another example is the use of well-known person or celebrities to endorse a product is a common tool for product purchase persuasion. Peripheral processed attitude change can be effective in the short term but attitude change undertaken through systematic processing is more likely to leave a long-lasting impression. As an example, people who were persuaded to join the environmental through the use of celebrities are less resistant to attacking messages compared to those who had undergone careful reflection before joining the cause. The reason behind this condition is that messages systematically processed become well-integrated in the person’s character. (Yan Tam & Ying Ho, 2005). Segmentation Profile According to the Winemakers Federation of Australia (2000), Australia is a mature and highly developed wine drinking nation ranking as the 12th largest consumer of wine products. From an annual 8.9 litres per head in 1970, consumption has increased to 19.3 litres per head in the year 2000 alone making production exceed levels previously marked for achievement for the year 2025. Our chosen segment includes individuals in the 20’s-30’s age bracket living in the city and working as professionals. Several important trends are currently shaping the scene and are inducing several behavioural and preferential changes particularly in the chosen segment. The shift has been termed as moving away from the ‘Old World’ and adapting ‘New World’ wine practices. A profile of the people belonging to this segment is discussed in the following passages: Sophistication and pleasure is important. Affluence and increase in personal wealth is transforming Australia to a more sophisticated society precisely because they can now afford to do so. Wine, widely seen as a sign of sophistication, is becoming an invaluable part of exuding a sophisticated lifestyle. People are now also drinking for the pleasure of the act rather than because of tradition. A healthy and active lifestyle Young professional Australians are becoming highly concerned regarding their health especially in light of the news regarding obesity and super diseases. They also have an innate love for sports and the outdoors. Natural is in In light of the stress of mass production, people are increasingly concerned on whether their food products have been grown using artificial fertilizers and growth enhancers. Food preservatives are being frowned upon. These individuals are also characterizes by a marked concern for ecological sustainability making them prefer products that comply with environmental regulations. Use of Technology for Staying Connected Having a mobile and being connected to the internet are now as important as car keys. While Australians love the outdoors and adores natural beauty, they cannot leave their homes without their mobile phones. Internet connection also enables them to stay connected with the world. A desire to express one’s self Individuals in this segment are increasingly becoming eager to express one’s own personality without any pretense. Being true to one’s self is important. Ethics is very important In a 2005 market research study conducted by the Australian Wine and Brandy Corporation, it was found that 90% of Australian consumers preferred products and services from companies that behave in decent and ethical ways. From the above, we can see that the Australian consumer segment chosen is highly evolved and is more critical with regards to purchases. Advertisers and promoters are faced with a highly discerning and concerned populace that seeks to have a healthy and green consumable products from a highly reputed consumer organization. The approach should be also personal or customized to the concept of self. Different avenues for purchase through the use of technology can also facilitate consumer choice. When all of this is taken together, it can be understood that persuasion strategies must be design so that the customers trust is gained. Essentially, the current populace wants a consumer product that can address personal and universal confidence at the same time. Jacobs Creek Strategy According to Mumbrella Online (2009), the current marketing strategy of Jacobs Creek red wines goes under the slogan True Character. In this regard, the advertisers want people to associate the product with being an integral part of the individuals notion of self. They wanted customers to think that Jacobs Creek wine is an expression of the true self. Resembling the process of classical conditioning, the True Character is designed to appeal to a desire common to almost people, the expression of the real me. Jacobs Creek strategy uses all forms and avenues of media to increase consumer brand awareness. The recent move was to sponsor the Australian Open, a sporting event well loved by Australian. It has also undertaken video advertisements showing people being able to be who they are with the help of Jacobs Creek red wine. Other promotional schemes such as design of bottles, packaging and open communications between the wine master and consumers are also in place. The most prominent, however, is the appeal to the individual self of the consumer which is at the very heart of the True Character campaign. ELM in Jacobs Creek Strategy It appears that the developers of the True Character strategy had the same conclusion as this author with regards to persuasion strategies employing trust strategies to be the more appropriate scheme. In Australia, the wine industry and all the brands produced are generally seen to be a clean and green. The general conception on all wine is that it reduces cardiovascular diseases and is safe to consume due to monitoring and certification standards established by the Australian government. Advertising through the use of technology requires people to be highly motivated to find wine products which is often not the case. Tastes are constantly being improved for all labels. Hence, the only arena for competition is to take the appeal to character strategy. From the point of the ELM framework, one can see that Jacobs Creek can be considered to be facilitating preference change via the peripheral route as it uses emotional appeals and the true character of celebrities. The slogan of true character induces nauseous feelings of hidden feelings and trapped personality. When this feelings are activated, cognitive thinking is less likely to take place. One may argue that the slogan can induce thinking by making people analyse their own character and that the concerned character of the new generation makes this analysis highly likely. The wine, however, is a recreational product used for entertainment purposes and people will generally not spoil the time being with friends and lovers by meditating on the merits of the true character slogan. There is also the general notion that when a product is made from Australia, it can be trusted. Ultimately, it is the appeal of being a personalized product that grips the individual. The great question that advertisers are all eager to know the answer of is whether their persuasion strategy is effective or not. Was their peripheral route effective in inducing people to prefer the red wine of Jacobs Creek? Ultimately, the most important measure of the effectiveness of the campaign is the volume of sales generated during and immediately after the promotional period. Was there a significant increase? To isolate the effect of the strategy from other strategies, surveys can always be taken to know what influenced the consumer to purchase the product. Conclusion ELM is a very helpful framework in trying to understand the persuasion process. An understanding of the central route and peripheral route can lead market professionals to form advertising schemes that provides the best results. In the case of Jacobs Creek red wines, we can see that even when an analysis of the characteristics of the populace can give us valuable insights to consumer preferences. We were also able to see that there are situations where it becomes hard to decide whether the central route or the peripheral route is to be taken by he consumer. The chosen segment is highly discerning and displays increasing concerns regarding health, ethical and environmental issues. Nevertheless, the strategy adapted assumed that people will take the peripheral route. An analysis of the customer segment would indicate that while people are generally concerned on the merits of the products, they will not spend time pondering on the pros and cons of buying a well known and well established Australian produced wine. References: Australian Wine and Brandy Corporation. Wine Australia: Market Insight Report. Australia: Wine Australia Publications. 2005. Print. Chen, Shu-Hui, and Kuan-Ping Lee. "The role of personality traits and perceived values in persuasion: an elaboration likelihood model perspective on online shopping." 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Social Behavior and Personality: an international journal 37.1 (2009): 137+. Academic OneFile. Web. 15 Mar. 2010. Sparks, John R., and Charles S. Areni. "Style Versus Substance: Multiple Roles of Language Power in Persuasion.(Author abstract)(Report)." Journal of Applied Social Psychology 38.1 (2008): 37+. Academic OneFile. Web. 15 Mar. 2010. Venkataramani Johar, G., Maheswaran, D., & Peracchio, L. Mapping the frontiers: Theoretical advances in consumer research on memory, affect, and persuasion. Journal of Consumer Research (2006). ABI Inform Global. Web. 15 Mar 2010. Winemakers’ Federation of Australia. The Marketing Decade 2000-2010. Australia: Winemakers Federation of Australia Publications. 2000. Print. Williams, Russell, and Philip J. Kitchen. "Involvement, elaboration and the sources of online trust." International Journal of Technology and Human Interaction 5.2 (2009): 1+. Academic OneFile. Web. 15 Mar. 2010. Yan Tam, K. & Ying Ho, S. Web personalization as a persuasion strategy: an elaboration likelihood model perspective. Information Systems Research (2006). ABI Inform Global. 15 Mar. 2010. Read More