The Effect Of Ad Variation And Brand Familiarity On Brand Name And Claim Recall: A Theoretical Perspective Dr. Anurag G. Hingorani University of Technology, Sydney Abstract Consumers’ memory for an advertised brand is of great concern to advertisers. Previous research has demonstrated that one way for advertisers to enhance consumer memory is to show different or varied ads for the same brand, from one ad exposure to the next, instead of repeating the same or identical ad. The emphasis of this prior research has been on unfamiliar brands even though, in practice, ads have been typically varied for familiar brands. This paper extends the work of past research by theoretically examining the effect of ad variation and brand familiarity on consumer memory. Specifically, it addresses cosmetic and not substantive ad variation, and compares the effects of ad executions that are completely varied, partially varied, and the same, from one ad exposure to the next, on the recall of brand names and ad claims (about the brand), for familiar versus unfamiliar brands. Research propositions are developed using the differential attention and encoding variability explanations that emerged from psychology. The paper suggests that familiar brands might be more likely than unfamiliar brands to benefit from ad variation, and that completely varied ad executions might be better than partially varied ad executions if the goal is to enhance memory for a familiar brand. Introduction Some empirical studies in marketing (e.g., Unnava and Burnkrant 1991) have suggested that an advertiser is better off showing different or varied ads (ad executions) for the same brand from one ad exposure to the next because the brand is more likely to be remembered (recalled) at a later time, date, or place than if the same or identical ad is shown. Cola giants, Coke and Pepsi, have done just that. Their ads are not identical from one ad exposure to the next. However, unlike the Coke ads which are completely varied (i.e., non-identical and dissimilar), the Diet Pepsi ads are partially varied (i.e., non-identical but similar). For instance, one Coke ad from the 1993 ‘Always Coca-Cola’ ad campaign showed a woman watching a man blowing a Coca-Cola glass bottle, and another ad depicted polar bears. These ads were completely different from each other because the theme or creative concept was different, and by definition, the execution was also different. The Diet Pepsi “You’ve got the right one baby, uh-huh!” campaign, on the other hand, had almost always included the celebrity, Ray Charles, and the three “uh-huh” girls. The commercials were, however, different in other aspects, such as some were in color and others were not. These ads were partially different from each other because even though the executions were different, the theme or creative concept was the same. Based on the evidence that in order to improve consumer memory for ads, it might be better to vary ads from one ad exposure to the next, the question that can be raised is: Which ad variation strategy is better?; is it more effective to develop and show ads that are completely varied or, are partially varied ads more useful in enhancing learning and forestalling wearout? Also, because prior ad variation research has controlled for the level of brand familiarity, another question that can be raised is: How useful is it to vary ads to different extents for familiar versus unfamiliar brands? This question is important because most studies (e.g., McCullough and Ostrom 1974; Schumann, Petty, and Clemons 1990) have assessed the effects of ad variation for unfamiliar brands even though, in practice, ads have been typically varied for familiar brands.1 This paper provides answers to these two questions in terms of theory. Background Ad Variation In the marketing literature, one conceptualization of ad variation has been in terms of the type of ad variation, namely, substantive or cosmetic variation (Schumann and Clemons 1989; Schumann et al. 1990). Substantive variation in ads refers to variation or change in the message content (i.e., product or brand claims/arguments/attributes) over repeated ad presentations but the cosmetic characteristics of ads (e.g., color, layout, print font) remain reasonably constant (Schumann et al. 1990). Cosmetic variation in ads refers to variation or change in the background or nonsubstantive features (e.g., graphics, color, music) over repeated ad presentations but the basic product or brand message is kept the same (Schumann et al. 1990). Essentially, substantive variation represents changes from ad to ad that are central to the product or brand being advertised, and cosmetic variation represents changes from ad to ad that are peripheral or ancillary to the advertised product or brand (Pechmann and Stewart 1988; Schumann et al. 1989). The focus of this paper is on the level or extent of ad variation, and not on the type of ad variation as defined by Schumann et al. (1990). Specifically, different levels of cosmetic ad variation are considered but the brand claims/arguments remain the same (i.e., no substantive variation). It should be noted that although ad variation (in particular, level of ad variation) is a continuous variable, in that, consumers might perceive ads to be varied to different extents, this paper examines only three discrete levels of ad variation, namely, no cosmetic ad variation, low to moderate cosmetic ad variation, and high cosmetic ad variation. Treating ad variation as a discrete (trichotomous) variable is consistent with prior research (Burnkrant et al. 1987; Schumann et al. 1989; Schumann et al. 1990; Unnava et al. 1991) that appears to have examined two discrete levels, namely, no ad variation and low to moderate ad variation. In this paper, ‘no cosmetic ad variation’ is represented by ‘same ads,’ ‘low to moderate cosmetic ad variation’ by ‘partially varied ads,’ and ‘high cosmetic ad variation’ by ‘completely varied ads.’ These ads are differentiated according to cosmetic differences in their theme and execution. ‘Theme’ (as applied to cosmetic ad variation) is defined as the creative concept or idea around which an ad campaign is organized [adapted from a definition of ‘theme’ by Toffler and Imber (1994) and based on a description of ‘theme’ by Schumann et al. (1990); refer to footnote for an illustration of the term ‘theme’].2 ‘Execution’ (as applied to cosmetic ad variation) is defined as the way in which an ad is prepared to communicate the theme [adapted from a definition of ‘execution’ by Toffler et al. (1994) and a definition of ‘execute’ by Wiechmann (1993)]. The way in which an ad is prepared refers to the executional elements used, such as, pictures, music, celebrities, etc.. Thus, in this paper, completely varied ads are those ads that are cosmetically varied in execution and theme, partially varied ads are those ads that are cosmetically varied in execution but not theme, and same ads are those ads that do not cosmetically vary in execution or theme. Additionally, it should be noted that a completely varied ad is viewed as being varied in other executional elements (e.g., picture, layout, font type, font size, color, etc.) besides those executional elements that are varied in a partially varied ad. That is, it is viewed as having more number of executional elements that are varied than a partially varied ad. Brand Familiarity In this paper, a brand is viewed as being either ‘familiar’ or ‘unfamiliar’; a brand is viewed as being ‘familiar’ if a consumer had some prior experience with it, and ‘unfamiliar’ if a consumer had no prior experience with it. This is consistent with prior conceptualizations of brand familiarity (e.g., Machleit and Wilson 1988). Development of Propositions It has been posited that varying ad executions from one ad exposure to the next is more effective (in terms of improving recall and/or attitudes) than repeating same ad executions (Burnkrant et al. 1987; Schumann et al. 1990; Unnava et al. 1991). Two prominent explanations that have been offered for this hypothesis include encoding variability (Burnkrant et al. 1987; Schumann et al. 1990; Unnava et al. 1991) and differential attention (Unnava et al. 1991). The Encoding Variability Explanation The Encoding Variability Explanation has roots in the encoding variability hypothesis (Madigan 1969; Martin 1968; Melton 1967) that emerged from cognitive psychology. According to the encoding variability hypothesis (D’Agostino and DeRemer 1972; Young and Bellezza 1982), when an individual is exposed to information more than once, the likelihood of retrieving (i.e., recalling) that information later is greater if the information is encoded (i.e., represented in memory) differently on every exposure occasion than if it is encoded in the same way on different exposure occasions. When applied to advertising, the encoding variability hypothesis suggests that if a brand name or ad claim about the brand is associated with two different cues (cues such as graphics, layout, scenery, spokesperson, etc.) instead of the same cue on two different ad exposure occasions, the likelihood of recalling that brand name or ad claim is increased. Typically in ads, the context in which the brand name and other brand-related information is embedded serves as a retrieval cue for the information to be recalled (Unnava et al. 1991, p 406). Thus, if a brand of cola is embedded in the context of a beach party in one ad and a dorm party in another ad, the two contexts may serve as two different retrieval cues for the cola. When advertisers pair or associate a brand (or brand information) with two different contexts (or cues) in ad executions shown on two exposure occasions, it may be said that they are facilitating encoding variability by the ad viewer (consumer) by means of ad variation. The purpose behind such ad variation may be to increase the number of traces (i.e., representations or paths) in a consumer’s memory for that brand (or brand information), and thus, the chance that he or she will recall it at a later time, date, or place. Because some studies have shown that brand recall is strongly correlated with brand choice (Nedungadi and Hutchinson 1985), influencing recall through ad variation could be in an advertiser’s interest. Based on the encoding variability hypothesis which links recall or retrieval superiority with the number of traces or representations encoded in memory for the to-be-remembered information (e.g., brand name and claims), it may be posited that completely varied ads should be more effective in enhancing recall for brand names and ad claims than partially varied ads since the former ads should generate more traces than the latter. Completely varied ads should generate more traces than partially varied ads as a direct result of variation, not only in more executional elements than partially varied ads but also in the thematic or conceptual element (cue) associated with the brand name and claim. Relatedly, same ads should generate fewer traces than either partially varied or completely varied ads because not only is the thematic or conceptual element not varied but also no executional element is varied. Thus, based on the encoding variability hypothesis, it could be posited that completely varied ads should be superior to same ads, in enhancing recall of information such as brand names and claims. But, because advertising for familiar brands may not work in the same way as advertising for unfamiliar brands (Machleit et al. 1993), will completely varied ads be superior, and same ads be inferior, in enhancing recall for both familiar and unfamiliar brands? The encoding variability hypothesis (e.g., Martin 1968), and studies that have supported it (e.g., Unnava et al. 1991), have nothing to say about the role of brand familiarity. This paper addresses its role by examining the effect of ad variation on recall for familiar versus unfamiliar brands. The Differential Attention Explanation The Differential Attention Explanation for the effect of ad variation on memory (recall) was explicitly provided by Unnava et al. (1991) but it can be traced to the work of Adams (1916), Poffenburger (1925), and Heeler (1972) in the marketing literature (Schumann et al. 1990, p 193). In the psychology literature it may be associated with the related work of Berlyne (1950), namely, the effects of stimulus novelty and variation on attention. According to the differential attention explanation, when individuals are exposed to the same or identical information repeatedly, the level of attention paid to later exposures declines. The rationale is that individuals perceive the information to be the same as what they have seen and attended to previously, which results in reduced attention due to not only a loss of interest in the information but also a lack of motivation to attend to it (Greenberg and Suttoni 1973; Unnava et al. 1991). This decreased attention to later exposures is observable as inferior recall performance in the same-execution presentations when compared with varied-execution presentations (Burnkrant et al. 1987; Unnava et al. 1991). This is because, in the case of the latter, the novelty of the new, varied execution arouses interest, which leads to enhanced attention (Berlyne 1950). The greater the attention (i.e., the greater the amount of time spent looking at an ad), the greater the likelihood of recall (i.e., remembering information from the ad) (Greenberg et al. 1973). Because partially varied ads are partly varied and partly same, it may be inferred that they are less novel and have less arousal potential than completely varied ads, and are more novel and have more arousal potential than same ads. Thus, according to the differential attention explanation, it could be posited that, “Completely varied ads should be superior to partially varied ads which, in turn, should be superior to same ads, in enhancing recall of information such as brand names and claims.” However, advertising for familiar and unfamiliar brands may work in different ways (Machleit et al. 1993). Thus, before accepting the superiority of completely varied ads and the inferiority of same ads, the effect of these ads on recall must be assessed for both familiar and unfamiliar brands. In other words, the question that is raised here is: Does brand familiarity moderate the effect of ad variation on brand name and ad claim recall? The Role of Ad Variation in Consumer Memory For ads of familiar brands: When consumers are exposed once to a new ad for a familiar brand, they can readily associate or integrate the advertised information, such as claims, with the brand name. This is because they have a preexisting brand name node in memory (Bettman 1979). This preexisting node representing the brand or brand name is the result of their prior experience with the brand, such as brand trial, consumption, prior ad exposure, etc.. When shown the same ad for the second time, and within a short period of time, the individual has another opportunity to learn brand information (i.e., the claim) but might be less motivated or willing to learn. This is because the second exposure to a previously, and recently, encountered stimulus (i.e., the brand and the ad), might not arouse any interest in the viewer and in fact might bore him or her (Greenberg et al. 1973). However, if the second ad execution, that is shown within a short time period, is varied, then the novelty or unfamiliarity of this stimulus (i.e., the ad) may arouse or renew his or her interest. Thus, the viewer is more willing to attend to, and learn information about the brand on this second ad exposure occasion; information such as the brand claim. Consequently, varied ad executions could facilitate ad wearin (i.e., learning) and postpone ad wearout (i.e., forgetting) in the case of familiar brands. Thus, the differential attention explanation could account for the superior claim recall scores for completely varied ads, less superior recall scores for partially varied ads, and inferior recall scores for same ads, in the case of familiar brands. A similar argument of attention renewal versus inattention can be made in the case of brand name recall when a consumer is exposed to a different (varied) versus an identical (same) ad, the second time around. Specifically, it is proposed that: P1: For a familiar brand, brand name (and claim) recall scores will be the highest in the completely varied-ad condition, the lowest in the same-ad condition, and neither as high nor as low in the partially varied-ad condition. Again, because an individual can form multiple traces or paths to the brand, as a result of being exposed to brand information that is embedded in varied (hence, multiple) contexts or associated with different cues, recall scores are expected to be higher for varied than same ads. Thus, the encoding variability explanation could also account for the effect of ad variation on recall of information about a familiar brand. For ads of unfamiliar brands: When consumers are exposed once (i.e., for the first time) to an unfamiliar brand, they develop or have the opportunity to develop a brand name node since it is not already preexisting (as in the case of a familiar brand). When shown the same ad for the second time, and within a short time period, they have an opportunity to strengthen the brand name node (Anderson 1983) as well as associate or integrate the advertised information, such as claims, with the brand name. That is, they have a greater opportunity for learning (and therefore, a greater likelihood of later recalling) the brand name or claims as a result of the repetition (Anderson 1983; Belch 1982; Gartman and Johnson 1972; MacInnis et al. 1991). This repetition is also highly unlikely to be boring or uninteresting since the stimulus (i.e., the brand) is relatively novel or unfamiliar. When exposed to an ad execution that is partially or completely varied on the second exposure, the individual might have less of an opportunity (i.e., a small or weak second opportunity) to learn about the brand because he or she is not shown the same ad. Also, learning might be hindered; the varied ad execution on the second exposure could either go unnoticed due to it being mistaken as an ad for another product/brand, or be insufficiently attended to, due to the consumer’s unwillingness to expend additional effort that might be necessary to learn about a relatively unfamiliar (as opposed to familiar) brand from a newly (as opposed to previously) encountered ad. Thus, in this case, varied ads could impede attention and learning, and hence subsequent recall of information. It should be noted that because partially varied ads are less varied than completely varied ads, they provide less of an impediment to attention and learning than completely varied ads. Consequently, it could be hypothesized that: “For an unfamiliar brand, brand name (or claim) recall scores will be the highest in the same-ad condition, the lowest in the completely varied-ad condition, and neither as high nor as low in the partially-varied ad condition.” Now, according to the encoding variability explanation, varied ads are more effective than nonvaried ads. In fact, this has been supported in studies that did not manipulate the level of brand familiarity but kept it constant by examining an unfamiliar brand only (Unnava et al. 1991). Thus, there are two competing hypotheses; one in favor of non-varied ads when the brand is unfamiliar and the lag between ad exposures is short, and another in favor of varied ads under similar conditions. It is expected that, on average, neither of the two hypotheses would dominate in the case of an unfamiliar brand and that any recall differences observed among the three ads (same, partially varied, and completely varied) would be non-significant. Thus, it is proposed that: P2: For an unfamiliar brand, there will be no significant differences in brand name (and claim) recall scores among the same-ad, partially varied-ad, and completely varied-ad conditions. It should be noted that the rationale for P2 could also be derived from the argument that in the case of an unfamiliar brand, the unfamiliarity or novelty of the brand itself could contribute to recall, and that the extent of ad variation might not make any difference. Conclusion Regarding consumer memory for cosmetically varied ads, this paper addresses two questions. ‘To vary ads or not? That’s one question.’ The answer from a theoretical perspective is: Vary, if the brand is relatively familiar. Vary or not—it does not matter—if the brand is relatively unfamiliar. ‘To vary ads partially or completely? That’s another question.’ The suggestion is: Vary completely, if the brand is familiar. 1 An exception is the study by Burnkrant and Unnava (1987). They used a non-fictitious, and hence, potentially familiar brand of whisky (Dewar’s). However, they did not compare ad variation effects for a fictitious (unfamiliar) brand with a non-fictitious (familiar) brand. 2 If one ad for a dandruff shampoo depicts “a girl staring at her date who has dandruff” and another ad depicts “a dermatologist recommending the product,” then the two shampoo ads are different in theme or creative concept. 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