Hierarchy-Of-Effects Theory
Categories: Financial Theory
The “hierarchy-of-effects theory” is a model used by advertisers to try and get we consumers to buy their products. It includes six stages—awareness, knowledge, liking, preference, conviction, and purchase—and to illustrate how these steps work in real life, we’re going to use the Snuggie, everyone’s favorite sleeved blanket, as an example.
Awareness—We become aware that the Snuggie is a thing that exists.
Knowledge—We compare the pros and cons of the Snuggie to those of other comparable products on the market.
Liking—We consider the benefits that a Snuggie could bring to our lives and begin to form an emotional attachment to the product.
Preference—We conclude that the Snuggie is the best sleeved blanket on the market.
Conviction—Not only is the Snuggie the best sleeved blanket on the market, but we’re now pretty sure we need to own one.
Purchase—We buy the Snuggie.
Advertisers are smart people, so they employ different techniques to guide us through our Snuggie stages. They produce infomercials so we’ll become aware of the product. They show how other blankets—sleeved or otherwise—simply don’t measure up to the Snuggie. They give us product information, share ravingly happy Snuggie customers’ testimonials, and show us how affordable and easy to pay for Snuggies are.
They’re basically matching their advertising strategy with our cognitive decision-making processes step by step, in hopes that we’ll not only snap up a Snuggie now, but that we’ll become loyal Snuggie customers and perhaps convince our friends and family members to buy Snuggies as well.