PALAWAN STATE UNIVERSITY

College of Business and Accountancy

Department of Marketing, Entrepreneur and Public Administration
Puerto Princesa City

MODULE 5:
CONSUMER KNOWLEDGE
& MEMORY
COURSE CODE: P2201 CONSUMER BEHAVIOR &
CUSTOMER RELATIONSHIP MANAGEMENT
2nd Semester | SY: 2020-2021
 TABLE OF CONTENTS

Overview 3
Learning Outcomes 3

Content

What is Knowledge?
How is Knowledge organized?
How memory works?
Case Study: Nostalgia marketing – MINI
Questions and Exercises

References

Course Code: P2201 | Module 5: Consumer Knowledge & Memory

2
 MODULE 5 |
Consumer Knowledge and Memory
Overview

This module examines how consumers interpret new stimuli using their existing
knowledge, and how they try to understand this new information. In addition, since existing
information stored in a consumer’s memory is often used to aid in making choices, this
chapter also explores how memories are formed, stored and retrieved.

Intended Learning Outcomes:

At the end of this module, you will be able to:
1. Describe the two main types of sensory memory differ from each other?
2. Describe the spreading activation theory of memory retrieval
3. Identify the characteristics of short-term memory.

Topics:
What is Knowledge?
How is Knowledge organized?
How memory works?
Case Study: Nostalgia marketing – MINI
Questions and Exercises

Course Code: P2201 | Module 5: Consumer Knowledge & Memory

3
Basics Marketing: Consumer behaviour
 Consumer motivation, perception, attitude 106 107
Chapter 5 Consumer knowledge and memory
The consumer as a decision maker

When a consumer makes a decision, they

usually make use of the information already
stored in their memory. This information
tends to be structured and organised using
associations between the various pieces of
information. These linkages enable the
consumer to recall information from their
‘knowledge base’ when required to do so.
The manner in which this knowledge is
encoded, organised and stored has a direct
impact on consumers’ decision making.
Knowledge is generally comprised of
associations we link to different objects –
these could be physical attributes or abstract
ideas and concepts. These associations have
certain characteristics. They can be salient,
unique, or favourable/unfavourable.
To put this into context, think of the Kellogg’s
Frosted Flakes (or Frosties) brand of
breakfast cereal. Certain associations should
spring to mind, such as ‘crunchy’ and ‘ice-
cold milk’. These are the more salient
associations linked to the brand. Other
thoughts that come to mind are unique and
can only be associated with this brand, like
‘Tony the Tiger’. Finally some associations
Tony the Tiger – ‘They’re grrreat!’ are favourable (convenient and tasty) or
Tony the Tiger is uniquely associated negative (sugary). Companies like Kellogg’s
with Frosted Flakes (Frosties) cereal work hard at eliminating the negative
and has been helping consumers associations and promoting the positive and
easily distinguish it from competing salient associations that lead to their brands
brands since 1952. holding a positive and prominent place in
their consumers’ minds.
What is knowledge?
How is knowledge organised?

Knowledge is the outcome of the collection Running glossary

and assimilation of information through categorisation
learning. All of the information that we have the process of placing a product or
learned about products, brands, product brand in a particular class or group
usage and so on, comprise our knowledge
knowledge structure
base. Consumers group this information
how information is organised
together in a manner that makes sense to
and stored
them. So, similar items might be stored
together. This system of information
organisation and storage is known as
the consumer’s knowledge structure.
Consumer knowledge is important to
marketers since consumers use their prior
knowledge to categorise or label products.
Categorisation is the process of placing a
mental ‘label’ on a product, based on
available information.

We have a hunger of the mind which

asks for knowledge of all around us,
and the more we gain, the more is our
desire; the more we see, the more we
are capable of seeing.
Maria Mitchell
Chapter 5 Consumer knowledge and memory
108 109

Remembering the good old days To celebrate its centennial, Converse

Before anyone wore Air Jordans, hosted a series of concerts described
there were Chuck Taylor All Stars. as a ‘striking artistic showcase of true
These shoes were named for Charles originals that defi ne the essence of
Taylor, a basketball star who played the Converse brand since 1908’. The
with several professional basketball company also played on consumers’
teams in the 1920s. He worked with memories of the ‘good old days’ with
the Converse Rubber Shoe Co. to their ‘Connectivity’ advertising
improve the sneaker and endorsed campaign launched
the shoe that eventually bore his in 2008. The advertising campaign
name. The high-top shoe with a presents past and present Converse
canvas upper and a rubber sole was a icons brought together to pay homage
hit. People liked the fi t and the cost. to the Chuck Taylor All Star shoe –
Consumers over the years have from the Sex Pistol’s Sid Vicious,
bought millions of the Converse to Green Day’s Billy Joe Armstrong.
Chuck Taylor shoes. ‘It wasn’t a style’, The aim of the advertising is to
said 71-year-old John Franchville of encourage consumers of all ages to
Ocala, who has been wearing the reconnect with the past via the
shoes since the 1940s. ‘We bought Converse shoes. This nostalgia
them because they were comfortable advertising strategy relies heavily on
and the price was right.’ consumers generating positive
memories about their past
The brand struggled in the 1980s
experiences with the shoe. This
after facing strong competition from
demonstrates how understanding
newcomers like Nike and the
memory and how it impacts upon
company went into bankruptcy in
consumers is of great importance to
2001. Nike eventually purchased
marketers.
them in 2003. However, in spite of
its ups and downs the shoe still has
myriad fans. Some consumers are
drawn by the nostalgia; others are
inspired by pop culture fi gures that
wear the shoes, like the Ramones
1
and Snoop Dogg.
What is knowledge?
How is knowledge organised?

Schema Running glossary

Our knowledge of an object generally brand image
consists of the set of facts that we know a subset of associations that
and associate with that object. These are related to a specifi c brand
associations are grouped together in a schema
meaningful way to form a schema about associations with an object grouped
that object. For instance, if asked about together in a meaningful way
your knowledge regarding an orange, you
script
might list the following attributes: round,
knowledge of a sequence of
sweet, fruit, breakfast food, vitamin C. All of
expected events in a given situation
these associations represent your schema
for an orange. These associations could be script disruption
physical attributes (round) or more abstract use of prior knowledge to grab
attributes (breakfast food). consumers’ attention by interrupting
the script
Consumers have schemas for products
(portable MP3 players, SUVs), brands (Nike, script facilitation
Microsoft) and stores (HMV, Gap). One type use of prior knowledge to facilitate
of schema that is important to companies is learning about new products or
a product’s brand image; this is a subset of brands
associations that are related to a specifi c
brand. Companies monitor their product’s
brand image very closely; they try to create
the brand image that they believe would be
best for the company’s profi tability through
their advertising and other marketing efforts.

Knowledge is of two kinds. We know

a subject ourselves, or we know
where we can find information onit.
Samuel Johnson
Chapter 5 Consumer knowledge and memory
110 111

Marketers make use of schemas It does not matter whether you are
Knowledge is usually represented by a small broker or part of a large
schemas that are made up of multiple financial institution. You still have
associations with products, brands, stores to establish an identity that is
and events. One type of schema is a script, unique from your competition.
which is our knowledge of a sequence of That identity is your brand image.
expected events in a given situation. Jeffrey Nelson
For example, if you go to a restaurant
you expect to follow a specifi c script –
get a table; view the wine list; order drinks;
view the menu; order appetizers; order the
main course; order dessert; eat; pay for the
meal. Marketers are aware that consumers
store some knowledge in the form of scripts
and use this information to help sell their
products. Using consumer expectations
to facilitate learning about new products
or brands is called script facilitation.
Alternatively, to grab consumers’ attention,
they can subvert expectations by interrupting
the script; this is called script disruption.
One company that made effective use of
this technique is DirecTV. In an advertising
campaign created by Deutsch Inc. of
New York City, several movie clips are
presented from popular older movies
such as Twister and Ferris Bueller’s Day Off.
The consumers have very clear expectations
of what they expect these familiar characters
to say, but instead of the lines that they
remember from the movie, the character
subverts expectations by promoting
DirecTV. These commercials performed
as planned; they grabbed the consumer’s
attention and were favourably received by
the target market.
 What is knowledge?
How is knowledge organised?
How memory works

Consumers need to store a plethora of Prototypes

associations in the form of schemas and Some items within a category are viewed as
scripts in their memories and need a better representing the category than others;
systematic method to organise this information. the original Coca-Cola and Pepsi soft drinks
Consumer knowledge is generally organised are better exemplars of the carbonated soda
into groups of related objects called category than Diet Cherry Coke drinks. This
taxonomic categories. Products are assigned process is known as graded structure.
some sort of identity and then grouped with Within any category, consumers will rank
products that are perceived as being similar. products based on how well they perceive
These categories also tend to be ordered in a them to be representative of the category.
hierarchical manner, for example, most people In this context, the product that is perceived
would store all shoes under ‘footwear’ (this is as best representing the category is known
the superordinate category). But within this as the prototype. This is an advantageous
category they may also store different types of position for any brand to be in since other
shoes in subcategories, such as running shoes brands will be compared to your product.
and formal shoes (these are the subordinate Additionally, when consumers think of a
categories). particular category the prototype will tend to
come to mind more quickly than other
Categorisation is important for marketers category members. For instance, Coca-Cola
because during this process consumers is considered to be the prototype for
make assumptions about a product’s carbonated soft drinks across the world. This
characteristics, competition and availability. gives the Coca-Cola Company an advantage
In other words, in order to categorise a in marketing their product since it will be
product a consumer has to decide what foremost in the minds of most consumers.
function it will perform, which other products
might perform the same function, and fi nally
where they might expect to buy the product
(they might go to a showroom to buy a car
but would be more comfortable buying music
online). A better workout deserves better
water! Propel Fitness Water and
new Propel Calcium are sure to
refresh your active body. They’re
both vitamin-enhanced and fi tness
focused with 10 calories so bodies
in motion can stay in motion.
PepsiCo (Makers of Propel)
Chapter 5 Consumer knowledge and memory
112 113

Nike is considered a prototype in the Running glossary

running-shoe market since it is thought of graded structure
most frequently. Additionally, the brand has a ranking of products based on
associations common with most running how well they are representative
shoes, such as comfort, durability and of the category
performance. A prototype usually has
prototype
an advantage over other brands since
a product that best represents a
consumers would generally consider the
product category
prototype as one of the fi rst choices when
purchasing a product. However, other brands subordinate
could still use consumers’ knowledge of the category below superordinate within
prototype to their advantage. One possible taxonomic structure
strategy is to market your brand as being superordinate
similar to the prototype brand. When this major category within basic level of
occurs, a large portion of the market opens up taxonomic structure
to the competing brand. In addition, taxonomic categories
consumers would consider purchasing knowledge that is organised into
this brand since the prototype to which it groups of similar objects
would be closely aligned is well-known
and well-regarded by consumers.
When Gatorade introduced Propel Fitness
Water in 2000, consumers had a diffi cult
time categorising this new product. In order
to make sense of this new entry into the
marketplace, consumers either had to
categorise it as a ‘sports drink’
2
or as ‘water’. Some established a new
category, as Gatorade hoped they would: a
‘sports or enhanced water’. Propel became
very successful, partly due to its association
with Gatorade, and sales topped $100
million in 2002. This success led to the
introduction of line extensions in 2006, such
as Propel Calcium (a low calorie drink) and
Propel powder packets.
 How is knowledge organised?
How memory works
Case study: Nostalgia marketing – MINI

The information that consumers store in their Memory models

memories has a tremendous impact on their Recent models of memory view the human
subsequent behaviour. Studies have shown
memory process as being very similar to the
that brands that can be easily recalled are
information-storing processes used by
more likely to be placed in the set of brands
3 computers. Data is fi rst collected externally
that a consumer considers for purchase. and then processed in the RAM (Random
Brands that are easily remembered are also access-memory) the information is then
4
better liked than other brands. Consumers transferred to the ROM (read-only memory)
are continually acquiring, storing and and integrated with existing fi les for
retrieving information and marketers place permanent storage. Finally, this information
great importance on how often consumers can be accessed and retrieved from the
remember their brands. ROM when required.
As the diagram opposite illustrates, the
human memory is very similar, with
consumers fi rst being exposed to external
information in the form of different sensory
outputs (visual, auditory and so on). This
information is then encoded and transferred
to sensory memory for a brief period, before
moving to short-term memory – this is the
brain’s RAM. Then, if this information is
further processed, it can be transferred
to long-term memory (the equivalent of a
computer’s ROM) to be stored permanently
and integrated with prior knowledge. There
it will remain until needed; at which time it is
retrieved from memory and placed into
short-term memory for use.
Chapter 5 Consumer knowledge and memory
114 115

The memory process

Environmental input

Sensory Working Long-term

memory (short-term) Storage memory
memory

Encoding
Retrieval

The memory process

The memory process begins
when an individual is exposed to
external stimuli. This information
is immediately encoded to sensory
memory, before being transferred
to short-term memory for up to
20 seconds. If further processing
is required after this period the
information is transferred to long-term
memory. Finally, the individual can
retrieve the information at a later
date once prompted with the right
cues; they might be faced with a
5
purchase decision, for instance.
 How is knowledge organised?
How memory works
Case study: Nostalgia marketing – MINI

Sensory memory Running glossary

We are all exposed to numerous stimuli discursive
every day. It would be impossible to place all relating to discourse or modes
of the resulting information in our memories; of discourse
our sensory memory therefore acts as a echoic
buffer between all of those external stimuli in sensory memory for sound
the environment and our memory. We store
iconic
information here on a very short-term basis
sensory memory for images
(less than three seconds). For example,
imagine you are driving and whiz by a
billboard; you may see it quickly and be
briefl y aware that the billboard
was advertising a Volvo car but may shortly
afterwards have completely forgotten its
existence.
We store many different types of sensory
information, but the two major forms are
iconic (memory for images) and echoic
(memory for sounds). Information in sensory
memory is stored for a few seconds.
We move this information to working memory
only if we are motivated to do so; for example,
if we catch a glimpse of that ad for a Volvo
automobile, we might pay additional attention Short-term memory is electrical; long-
to it and process it further if we were in the term memory is chemical. We can
market for a new car. only do three things to increase the
transfer of our messages from
electrical memory to chemical
memory: increase the relevancy of
the message, increase the frequency
of its repetition, or both. Branding is
accomplished only when you have a
relevant message that is repeated
with enough frequency to become
stored in chemical memory.
Bryan and Jeff Eisenberg
Chapter 5 Consumer knowledge and memory
116 117

Short-term memory Discursive and imagery processing

This space provides temporary storage for We store information in short-term
information currently in use (similar to the memory in two forms – as words
computer’s RAM). Short-term memory has (discursive processing) and as images
several attributes. It is very limited and can (imagery processing). In the case of
hold approximately seven bits of discursive processing, we would store
information, that is, we can generally only an object as a basic label, e.g., beach.
remember seven items at a time. It is of However, when we use imagery processing,
moderate duration; you cannot maintain we store the object visually as an
information in short-term memory for more approximation of the reality. Therefore,
than 20 seconds. Attention is needed to what we store in memory bears a closer
move information into and out of short-term resemblance to the actual object. In the case
memory. In order for information to be of the beach, we would store an image of the
retained in short-term memory, it must sand, water and waves.
be rehearsed. Think of a new friend telling Marketers have made use of consumers’
you their telephone number; if you have to ability to engage in imagery processing.
remember that number for a short time before Imagery facilitates the recall of past
fi nding a pen and paper (or your own phone) experiences. Vivid images allow us to relive
you will have to repeat it a few times in order events that we have experienced. For
not to forget it immediately. By repeating the instance, seeing a photograph of an event
number to yourself, you will be able to that you attended is more likely to generate
maintain the information in short-term vivid memories, compared to seeing a
memory. If you are prevented from rehearsal, sentence describing the event. So if a
the information will simply decay from your marketer for a holiday company wants to
short-term memory. remind us how much fun it is to visit new
places, a photograph of an exotic beach
will usually be far more effective than a
detailed description. A picture truly does
‘speak a thousand words’.
 How is knowledge organised?
How memory works
Case study: Nostalgia marketing – MINI

Long-term memory The importance of autobiographical

This is a fairly permanent store of memory memory
and is where consumers retain a lot of the Long-term memory has been partitioned in
knowledge that they acquire in their daily two different ways. A lot of what we have
lives. Long-term memory has unlimited stored in memory represents knowledge
capacity. For information to be transferred about experiences that we have had. This is
from short-term to long-term memory, known as autobiographical/episodic
it must be processed more deeply and then memory. These memories tap into the
associated with information that already emotions that we felt during the original
exists in prior knowledge. The more deeply experiences and tend to be very powerful.
consumers process a particular piece of Think about a very happy event in your life,
information, the more likely it is to be such as success in an exam. Try to recall
associated with existing information in your experiences when you fi rst heard the
memory; this information will then remain news. Depending on how recently the event
more accessible. occurred, the emotions and sensations that
were attached to the event will also be part
of the memory.
The other type of long-term memory is
semantic memory. This is general or generic
information about how things work in the
world. For example, we have memory for an
object called a car. We remember the car has
tyres, seats and a steering wheel. We also
know that if we get inside and turn the key,
then the car should start and (assuming we
know how) we would be able to drive it. This
knowledge is separate from the memory for
specifi c episodes in our life.
Chapter 5 Consumer knowledge and memory
118 119

Marketers can use information stored in Organisation of long-term memory

long-term memory to infl uence how Information in long-term memory is
consumers evaluate their products. As we organised according to meaningful
mentioned earlier, consumers associate relationships. This is called an associative
certain emotions with events in their life. network. For example, all information about
Advertising that stimulates nostalgia can cars could be stored closely together
affect a consumer’s evaluation of products and connected via commonalities among the
that they associate with fondly different bits of information. All SUVs might
remembered events. Coca-Cola does this be connected and organised under that label.
very effectively in its ‘Holidays are coming’ However, the Mercedes Benz SUV would
annual campaign – stirring up memories also be connected to all other Mercedes
of childhood excitement, Santa Claus and Benz automobiles. Objects that have the
family gatherings. most associations would be better
remembered than items with fewer
associations. The school you attended might
have numerous associations, such as the
different friends, teachers and new
experiences you encountered there. Thus,
you are more likely to remember your time at
school than a less eventful period of your life.

Running glossary
autobiographical/episodic
memory
long-term memory about experiences
that we have had
semantic memory
general or generic information about
how things work in the world

Memory is the greatest of

artists, and effaces from your
mind what is unnecessary.
Maurice Baring
 How is knowledge organised?
How memory works
Case study: Nostalgia marketing – MINI

Changing perceptions
In May 2003, the Volvo Car
Corporation launched the S60R and
the V70R. Volvo traditionally focuses
on its safety image, but the launch of
these new, sportier models marked
a clear shift in direction as they touted
the V70R as ‘the fastest production
wagon in North America’ and boasted
that ‘the S60R can hit 60 mph in
5.4 seconds’.
Jay Hamill, marketing manager for
Volvo Cars North America stated,
‘Evolving is necessary. It’s not easy to
do, and safety is not going away. The
Mr Hamill recognised that it would be
role of the “R” is a halo – to provide an
diffi cult for consumers to view any
underlying image of total performance.
Volvo as a sporty car given their
But it will be a limited edition, for focus
existing knowledge of Volvo
and exclusivity’.
automobiles, especially since Volvo
had a long-standing positioning as a
safe family car. Volvo’s dilemma
highlights the impact of consumer
knowledge on marketers. Consumers
have different associations that they
link to different products – in Volvo’s
case, ‘safety’ and ‘family-friendliness’.
These associations and other
information make up the consumer’s
knowledge base. Consumers use this
knowledge to interpret new information
about cars in general, and Volvo cars
6
in particular.
Chapter 5 Consumer knowledge and memory
120 121

As you search for memories of a How is information retrieved

particular event, your brain state from memory?
progressively comes to resemble When a consumer is cued (or prompted) to
the state it was in when you initially retrieve information from memory, they start
experienced the event. It is all part from the primary label under which all of the
of the brain’s ability to cross- information for that subject is stored. They
reference memories, pulling then move from that category label to other
together separate pieces of subcategories until they get to the memory
information from an elaborate that they need. When the fi rst label is
network of stored representations to activated, in order to get to the concept that
recreate an event. they are looking for in memory, this
Sean Polyn activation is ‘spread’ from one concept
to another fairly automatically. This theory
of spreading activation is illustrated in the
‘Memory retrieval’ fi gure on pp. 122–123.
To put this into context let’s assume that a
hunter is on the market for a certain type of
dog. He may be cued by a print advert
displaying new gear required for the
upcoming hunting season. In this instance
the label ‘hunting dogs’ may be activated as
his current dogs may be getting too old to
hunt. This activation in memory then
spreads to his memory for sporting dogs.
Since he is hunting small game, he may
then recall the information he has in memory
about retrievers. Thus from the initial cue,
a process of recall is activated, spreading
from label to label. This spread is facilitated
by associations that lead the hunter through
his existing memories. This happens until
the desired information is retrieved – which
breed of dog he should buy.
 How is knowledge organised?
How memory works
Case study: Nostalgia marketing – MINI

Memory retrieval: An associative

network for dogs
When thinking about the need for a
new dog for the hunting season,
a hunter would likely begin with
the broad category of ‘dogs’. This
activation in memory then spreads
to his memory for ‘hunting dogs’.
Since he is hunting small game,
he may then recall the information he
has in memory about ‘sporting dogs’.
Thus from the initial cue, a process
of recall is activated, spreading from Companion dogs Herding dogs
label to label. This spread is facilitated
by associations that lead the hunter
through his existing memories. This
happens until the desired information
is retrieved – which breed of dog
he should buy.

Scent hounds Dachshunds

Retrievers Setters
Chapter 5 Consumer knowledge and memory
122 123

Memory retrieval: An associative network for dogs

Dogs

Hunting dogs Guarding dogs Working bull breeds

Terriers Windhounds

Hunting

Keen smell

Game

Sporting (gun) dogs

Pointers Spaniels
 How memory works
Casestudy Nostalgia marketing – MINI
Questions and exercises

Background A partnership with John Cooper of the

In the 1950s the world was facing an oil Cooper Car Company, which was known for
shortage, when supplies were cut off due its race cars, led to the development of the
to the Suez Canal crisis. This threatened MINI Cooper. This was a high performance
to put a damper on the British automobile car with a larger engine and greater
industry, which was fi nally growing again horse power. Rally-prepared MINI Coopers
after the Second World War. Given the collected outright wins in the prestigious
possibility of restricted fuel supplies, Monte Carlo Rally from 1964–1967. A
the head of the British Motor Corporation number of wins in other competitions solidifi
(BMC), Sir Leonard Lord, challenged one of ed the reputation of the MINI Cooper as a
his designers, Alec Issigonis, to design an performance car.
affordable, fuel-effi cient car that could The MINI became popular in many parts of the
carry four adults. The result of Issigonis’ world and was manufactured in multiple
design was the launch of two cars from countries under license to the British parent
BMC in 1959: the Austin Se7en and the company, including Australia, Italy, Spain,
Morris Mini-Minor. These ‘MINIs’ had Belgium, South Africa, Chile and Venezuela.
a very compact design and the wheels were In 1994, the company, now known as Rover,
only ten inches in diameter to reduce the was sold to BMW. In 2000, BMW sold Land
amount of intrusion into the interior Rover to Ford and retained MINI. The
passenger cabin space. In addition, the remainder of the company became
engine and transmission were mounted in a independent under the name
manner to maximise cabin room. The design MG Rover Group. In this environment of
allowed 80% of the MINI’s total length to be ownership upheaval, production of the MINI
dedicated to passenger cabin space. Thus, continued until 2000 when the last original
Sir Lord’s dream was realised – a small, fuel- 7
MINI was produced.
effi cient car that could seat four adults.
Primary competition for the MINI was the
Volkswagen Beetle 1200, Renault Dauphine
and Fiat 600. However, these cars were all
rear engine with rear-wheel drive, whereas
the MINI was front-wheel drive.
Chapter 5 Consumer knowledge and memory
124 125

Fun MINI advertising

This advert for the new MINI uses
a Transformer-style robot to appeal
to the younger fi rst-time buyers who
might be less familiar with the original
cars. At the same time, it emphasises
fuel economy – a key selling point of
the old MINI that will be very familiar
to repeat customers.
© 2009 MINI, a division of BMW of
North America, LLC. All rights
reserved. The MINI and BMW
trademark, model names and logo
are registered trademarks
 How memory works
Casestudy Nostalgia marketing – MINI
Questions and exercises
Chapter 5 Consumer knowledge and memory
126 127

MINIs – new and old The new MINI

Many people complained that BMW continued to develop the MINI
the new MINI was not a ‘real’ automobile. However, the company
MINI. They believed there were scrapped the work Rover had done and
too many changes made to the pursued a new design for a replacement
original: however, there is a clear MINI. Their intent was to redesign the MINI
family resemblance between the along the lines on which the original might
original shown bottom left and the have evolved if it had kept up with changes
new design above. in the automotive world. They wanted to
© BMW AG design a modern car that was still instantly
recognisable as a MINI. These new cars
would all be known as MINI Coopers.
The MINI Cooper fi rst became available in
Europe during 2001. This was followed by
the MINI Cooper S a few months later. The
fi rst MINIs were available for sale in the
US in April 2002.
 How memory works
Casestudy Nostalgia marketing – MINI
Questions and exercises

Using nostalgia Most industry analysts thought the world’s

Marketing the new MINI presented an desire for one of the best-known microcars
interesting challenge. Much like the original would have long declined. Yet the original,
model, the new MINI was marketed as a fuel- popular as it was during its peak sales period,
effi cient car, with a surprising amount of was not a modern design even though it saw
interior space. BMW hoped its marketing many updates and improvements over its
efforts would help generate feelings of lifetime. In order to keep up with the times,
nostalgia. The aim was to tap into the BMW had to add some innovative new
positive memories of older MINI enthusiasts features to make the MINI contemporary. The
who were familiar with the fuel economy and marketing strategy proved a great success.
surprising roominess of the original MINI and Sales of the new MINI rose from its launch
the racing success of the MINI Cooper. The and peaked in 2005 at 200,000 units, with
company hoped that this nostalgia would projected sales dipping to 180,000 in 2006.
lead to customers wanting to try and then The rising price of gas in 2008 led
purchase the new MINI. to a resurgence in demand for the new
MINI and sales again rose. ‘The world’s
In addition, BMW also targeted young, affl
leading premium small car’, as BMW likes
uent drivers between 20–34 years old. The
to call it, now accounts for more than 15%
updated design and modern conveniences
of the company’s sales worldwide.
of the redesigned MINI were aimed at these
new drivers. The company believed that the
updated design could help revive the
somewhat dormant MINI brand while also
providing it with new brand meaning and
developing a new brand story for fi rst-time
buyers.
Chapter 5 Consumer knowledge and memory
128 129

Other brands use of ‘nostalgia Question 1

marketing’ What are some of the major
Other companies have also turned to advantages and disadvantages of
nostalgia marketing in their attempts to nostalgia marketing?
revive their brands. For example, Michelin
resurrected the 109-year-old Michelin man
for a 2007 television campaign. In addition,
after a fi ve-year absence, Cadbury
reintroduced its ‘Flake girl’, who featured in
a long-running campaign that was voted
Britain’s favourite in television poll. Other
car manufacturers have adopted similar Question 2
strategies. For example, Volkswagen rolled Are there some products or brands
out the new Beetle in 1998 and Fiat also for which this strategy may not be
began selling an updated version of its successful? Why not?
classic 500 in 2007. The brand equity
created by these brands over the years is
hard to throw away and so companies try to
remake these old brands and brand images
by presenting them in a contemporary way.
Using classic brands also makes fi nancial
sense as it takes a great deal of advertising
dollars to create a new brand image; by
tapping into existing memories companies Question 3
can save on advertising costs as ads to Develop a ‘nostalgia marketing’
drum up initial awareness are therefore not campaign for an old brand that is
necessary. declining or that no longer exists.
Gerry Moira, director of UK creativity at Euro To whom would you target the brand?
RSCG likened reviving an old brand to ‘re- How would you position the brand
using bricks to build a new house’. The costs (how would you want consumers to
are substantially reduced and the result is still perceive it)? How would you price it?
a very sturdy structure. Where would you sell it? What would
the new product look like? Would it
be updated in any way? How would
you advertise it?
 Case study: Nostalgia marketing – MINI
Questions and exercises

Discussion questions Exercise 1

1 Visit your local grocery store. While
Knowledge is generally comprised of walking through the aisle, make a note
associations with different objects. of where products are located on the
What are the different characteristics shelves. Are there any brands that
of these associations? you would categorise as belonging to
2 another product category, even
What are the two different ways in though it is located in a specifi c
which a company can make use of location on the shelf? For instance,
schema in their marketing tactics? Propel Fitness Water might be located
Provide your own examples of each. near Gatorade, but you might still
categorise it as water and not a
3
fi tness drink. Note these examples
When consumers encounter new
and present them in class, along with
objects they go through the process
your reasons for categorising them
of categorisation. In what ways
differently. Do you believe that this
could categorisation be important to
mistaken categorisation is benefi cial
marketers?
or harmful to the manufacturer?
4
Describe how the two main types
of sensory memory differ from
each other.
5
What are the characteristics of
short-term memory? How could
we use short-term memory to market
more effectively to consumers?
6
Describe the spreading activation
theory of memory retrieval.
Chapter 5 Consumer knowledge and memory
130 131

Exercise 2 Endnotes
Along with three of your classmates, 1
Hosten, K. ‘Legions of Converse
select a food that at least one of you Fans stay loyal to Chuck Taylor
likes. Develop a schema for that food – Sneakers’ 21 March 2007,
include both positive and negative <[Link]>
associations. As a company that 2
Day, S. ‘Bottled Water is Still Pure,
markets that food product, how could but is it Water anymore’ The New
you make use of some of the more York Times, 3 August 2002
salient positive associations in your 3
marketing campaign? How would you Desai, K. K. and Hoyer, W. D.
December 2000, ‘Descriptive
counter any negative associations? Characteristics of Memory-Based
Consideration Sets: Infl uence of
Usage Occasion on Frequency
and Usage Location Familiarity’;
Journal of Consumer Research
4
Menon, G. and Raghubir, P.
May 2003, ‘Ease-of-Retrieval as
an Automatic Input in Judgments:
A Mere-Accessibility Framework?’
Journal of Consumer Research
(pp. 230–243)
5
© 2001 Houghton Miffl in Company.
All rights reserved
6
Rechtin, M. ‘Volvo enters fast lane
Exercise 3 with impending launch of sporty R
Conduct a memory experiment. models’ Automotive News,
Provide a list of eight product 22 April 2003
attributes (for one product) to three 7
Frost, P. ‘Classic Mini Cooper’
different individuals. Interview each Businessweek, 15 June 2007
person separately. Let each individual
read the list for 15 seconds. Take the
list away then perform a distracter
task – ask your friend
to count backwards in threes from
100 (100, 97, 94, 91). Do this for
30 seconds. Then ask them to try
to remember the list of attributes that
you showed them. What are your
results? What does this tell you about
how consumer memory works?