CICB NOTES FOR QUIZ
Information processing theory is an approach to cognitive development studies that aims to explain
how information is encoded into memory. It is based on the idea that humans do not merely
respond to stimuli from the environment. Instead, humans process the information they receive,
which is also the reason why unique names for business tend to have better recall. While experts
believe that the brain’s mechanisms and functions are relatively simple, the magnitude and scope of
neural networks and their behaviours are quite powerful as a whole.
Elements of Information Processing Theory
While major models of information processing theory vary, they are mostly
composed of three main elements
1. Information stores – The different places in the mind where information is
stored, such as sensory memory, short-term memory, long-term memory,
semantic memory, episodic memory, and more.
2. Cognitive processes – The various processes that transfer memory among
different memory stores. Some of the processes include perception, coding,
recording, chunking, and retrieval.
3. Executive cognition – The awareness of the individual of the way
information is processed within him or her. It also pertains to knowing their
strengths and weaknesses. This is very similar to metacognition.
Atkinson and Shiffrin Model
John William Atkinson and Richard Shiffrin proposed the multi-store model in 1968 to
illustrate their view of human memory (Atkinson & Shiffrin, 1977). The model shows
the three subsections of human memory and how they work together.
So, what are the 3 stages of information processing? They are as follows:
1. Sensory Memory – It holds the information that the mind perceives through various
senses such as visual, olfactory, or auditory information. These sense organs often
receive a barrage of stimuli all the time. However, most are ignored and forgotten by
the mind to prevent getting overwhelmed. When sensory information engages and
gets the attention of the mind, it is transferred to short-term memory.
2. Short-Term Memory (Working Memory) – Information in short-term memory only
lasts around 30 seconds. Cognitive abilities affect how individuals process
information in working memory. Additionally, attention and focus on the most
important information also play an important role in encoding it into long-term
memory. Furthermore, repetition significantly helps the ability to remember details for
a long time.
3. Long-Term Memory – It is thought that long-term memory has an unlimited amount
of space as it can store memories from a long time ago to be retrieved at a later time.
Various methods are used to store information in the long-term memory such as
repetition, connecting information, relating information to meaningful experience or
other information, and breaking up the information into smaller chunks.
Baddeley and Hitch Model of Working Memory
Alan Baddeley and Graham Hitch proposed the model of working memory back in
1974. They provided an in-depth understanding of the mind and how it processes
information. Four more elements are added to further illustrate the information
processing theory (Goldstein & Mackewn, 2005), namely:
1. Central executive – It is considered the control centre of the mind where information
processes are regulated between various memory stores. It controls and implements
the cognitive processes that encode and retrieve information. Additionally, the central
executive receives information from the visuospatial sketchpad, episodic buffer, and
phonological loop. The frontal lobe of the brain is thought to house the central
executive, as this is where all active decisions are processed.
2. Phonological loop – It works closely with the central executive and holds auditory
information. Furthermore, it is composed of two sub-components:
o Phonological store – It holds auditory information for a short period.
o Articulatory rehearsal process – It stores the information for longer periods
of time through rehearsal (Baddeley & Hitch, 2019).
3. Visuospatial sketch pad – It is considered another part of the central executive that
holds spatial and visual information. It helps the mind imagine objects and
manoeuvre through the environment.
4. Episodic buffer – Baddeley later added the fourth element of the model, which also
holds information. It increases the capability of the mind to store information. He
believed that the episodic buffer transfers information between short-term memory,
perception, and long-term memory. As it is still relatively new, research is still
conducted as to its specific mechanisms (Goldstein & Mackewn, 2005).
There are four primary stages of processing information in organizations which
usually, but not always, occur in order (Kmetz, 2020):
1. Acquisition or retrieval – Individuals in the organization receive or seek
information. The source of information can come from within the organization,
such as knowledge base, experts, or even performance review
comments from employees. The information can also originate from outside
the organization through other entities, third-party experts, and more.
2. Storage – It may initially occur in the individuals’ memories. Storing may also
occur in other media such as computers, databases, or servers. Storing is a
crucial part of the entire information processing workflow so that other
members of the organization can access the information when needed. It is
also important for learning as the organization can learn from its past
experiences through the stored information.
3. Transformation – It happens when individuals modify or transform
information that is received or in storage. This may include analysis,
expansion, or compression that will help them in decision-making.
Transforming can include extracting or deriving result from new information.
4. Transmission – The information from one of the first three stages are
distributed to others. It may include reporting or presenting to relevant
stakeholders.
Information processing theory is currently being used in various industries, areas of
study, and technology careers. Beyond the individual, the concepts, models, and
ideas in information processing are being applied to various entities such as:
Business – Information processing theory has been used to describe
organizational behavior (an example is discussed in the previous section). For
example, various models are used to understand how businesses utilize
market information, how they decide which information is relevant or
important, and how it affects their long-term strategies (Rogers, Miller, &
Judge, 1999).
Family unit – The theory is used to understand family systems that include
attending, sensing, and encoding of stimuli within the family as a whole or the
individuals. A family unit then develops mutual and individual schemes that
affect how information is processed and attended to. The schemes can be
examined to describe family dynamics, culture, and relationships (Ariel, 1987).
Artificial intelligence (AI) – Information processing theory was developed in
cognitive psychology and the desire of scientists and experts to understand
how the human mind works. AI studies aim to understand human cognition
and replicate the processes in machines such as natural language
processing, memory encoding, information retrieval, learning, and more
(Langley, 2016).
There are three types of influence that a social presence can have on a consumer: utilitarian, value-
expressive, and informational.
3.1 | Utilitarian influence
Utilitarian influence arises when an individual is motivated to obtain rewards or avoid punishment
from a social presence. This type of social influence generally operates through a compliance process
Stated differently, in order to gain rewards or avoid punishment, consumers will comply with a social
presence. Utilitarian influence is often prevalent when consumers seek to attain affiliation-related
Rewards, due to a fundamental need to belong and avoid punishment through compliance with salient
social norms.
3.2 | Value-expressive influence
Value-expressive influence occurs when people adopt behaviours or beliefs that enhance or support
their self-concept. Indeed, individuals have a pervasive desire to hold a positive self-view
And thus, they seek to enhance, protect, and repair their self-concept as needed. It is the focus on
enhancing and protecting the self-concept, rather than satisfying a need to belong, that
Separates value-expressive influence from utilitarian influence. As such, value-expressive influence
operates through an identification process wherein consumers associate with a positive
Social presence and disassociate with a negative social presence. In consumption,
Value-expressive influence impacts consumers’ efforts to enhance the self in the eyes of others
through impression management strategies, and to protect and repair the self from threats that
jeopardize their positive self-view.
3.3 | Informational influence
Informational influence involves accepting information from others to serve as evidence about
reality. This influence operates through an internalization process and is accepted if it enhances
consumers’ knowledge about or ability to cope with an aspect of their environment.
Early research on informational influences in consumption explored its role during active
interactions between a sales associate and consumer; more recently, work has focused on
Its pervasive role during passive exchanges. In particular, consumers often use visual information
from a social presence—such as their number and location, appearance, and behaviour—to make
inferences about store and brand quality, trustworthiness, creditability, and choice, respectively.