Dialogue, Customized Marketing Materials and Affective Responses 1

Running head: DIALOGUE, CUSTOMIZED MARKETING

Dialogue, Customized Marketing Materials and Affective Responses

Dewayne Wright University of Memphis

[APA, 5th ed.]

Dialogue, Customized Marketing Materials and Affective Responses 2 Dialogue, Customized Marketing Materials and Affective Responses

Introduction According to a study by the Chief Marketing Officer Council (2008), customers want, expect and desire a more customized and personalized experience (p. 3). Furthermore, the study concludes that for the customer, there is a deep and almost insatiable desire to be heard. Customers are desperate to have a relationship where they are nurtured, cared about and recognized (p. 3). As new technologies allow marketers to use extensive customization in speaking with their customers, this is becoming a more dynamic, interactive conversation flowing between customers and organizations instead of a one-way communication going from the organization to the customer. And as this conversation develops, established theories of dialogue communication can be used to help understand the dynamics involved in helping to nurture or disable the conversation. Based on philosopher Martin Bubers thoughts on our need for confirmation (1957), communication scholars have developed theories of interpersonal communication that focus on confirmation as essential to meaningful dialogue. According to Julia Wood (2006), When others confirm us, we feel appreciated and respected. When they disconfirm us, we feel discounted and devalued (p. 135). Even though marketing researchers have shown an increase in effectiveness with the use of one-to-one marketing materials over more traditional segmented marketing materials (Rust & Verhoef, 2005), less than 20% of respondents to a CMO Council study use customization extensively (Chief Marketing Officer Council [CMOC], 2008). Bob Thacker, senior vice president of marketing and advertising for OfficeMax, in an interview with Advertising Age, said

Dialogue, Customized Marketing Materials and Affective Responses 3 Personalization is the whole theme of this marketing era. Its the end of mass communication as we know it (Cuneo, 2008, p. 10). But while studies have been undertaken to research the effectiveness of one-to-one and personalized marketing (Rust & Verhoef, 2005; Pancras & Sudhir, 2007; Bennett, Chan, & Pflum, 2005; CMOC, 2008), the research has not addressed whether recipients of customized marketing material have an increased positive attitude toward the advertising material or the issuing organization. In other words, we know that people do respond to customized marketing, but we dont know why they respond. The purpose of this research is to build the foundation of a theoretical way to look at customized, or one-to-one, marketing material and the affective response this material. Areas of research from varied disciplines will be examined, including work in interpersonal communication, affective response to advertisements, persuasion theory as it pertains to marketing materials; and effectiveness of customized materials versus traditional mass produced materials. Origin of the Concept Customized Marketing Customized, or one-to-one, marketing utilizes the data an organization has collected about its customers preferences to prepare personalized materials (letters, publications, Web pages, emails, etc.) and deliver the materials to the customer at an optimum time. By determining these preferences, the issuing organization can anticipate a customers needs and wants and make an offer before the customer begins his or her search (Simonson, 2005). Simonson says if the one-toone marketing effort is successful, the organization is rewarded for the value they provide with higher customer loyalty, creating a literally insurmountable barrier to a competing organization.

Dialogue, Customized Marketing Materials and Affective Responses 4 [History of customized marketing materials]
a. Mail-merge letters through direct mail b. Technological advances such as variable data printing and data collection

Due to the technologies and techniques available at the time, marketing adopted the traditional SenderMessageReceiver (SMR) construct. A message, created by the marketer (S), was sent to the consumer (R). The marketers belief was that if the correct consumer successfully received the message, the promoted product or service stood the chance of being selected by the consumer. Now, with technologies such as variable data printing and techniques such as database mining, the construct is being changed. No longer is it a one-way street; it has become a two-way street with messages flowing from the marketer to the consumer and back again (SMR). For example, lets look at the college recruiting process. In the past, if a high school student were interested in a certain college, they would contact that college for information, often answering questions about his or her interests via short questionnaires. Once a college received the request, mass-produced materials were sent to the student. The material could not be tailored to that individual students interests or any other demographic markers (e.g., gender, ethnicity). The student would then need to wade through the long materials to find what material was of interest and, ultimately, decide whether they had a continued interest in the college. Now look at the same example in light of the new marketing communication model. Utilizing data mining techniques, a college prepares customized materials to reflect a students individual interests and status groups (e.g., was in marching band, interested in chemistry and biology, female). The student receives material that has general information about the college, coupled with photography and text information tailored to that students expressed interests.

Dialogue, Customized Marketing Materials and Affective Responses 5 But even if the communication concept of marketing is changing, that mass communication is become more personal, what rules govern this model? To answer that question, we turn to interpersonal communication and its study of dialogue.

Interpersonal Communication In Reardon and Rogers (1988), it is argued that the distinction between mass communication and interpersonal communication is a false dichotomy which hinders both subdisciplines from interaction with each other, even though there is little theoretical justification for the separation. The study of interpersonal communication is a very robust field, covering interests both verbal and non-verbal. The field traditionally deals with spoken communication that takes place between two-to-three individuals in a face-to-face interaction (citation). For the purpose of our review of a possible theoretical basis of why customized marketing materials work, we will look more closely at dialogic theories, specifically confirmation/disconfirmation. Confirmation and Disconfirmation Philosopher Martin Buber (1957) was the first to us confirmation in an interpersonal context: The human person needs confirmation. An animal does not need to be confirmed, for it is what it is unquestionably. It is different with [the person]. Sent forth from the natural domain of species into the hazard of the solitary category, surrounded by the air of a chaos which came into being with him, secretly and bashfully he watches for a Yes which allows him to be and which can come to him only from one human person to another. It is from one [person] to another that the heavenly bread of self-being is passed. (p. XX)

Dialogue, Customized Marketing Materials and Affective Responses 6 Even though Buber spoke of confirmation, initial interest was in defining disconfirmation behaviors with regards to familial dysfunction and individual schizophrenia (Laing, 1961). While Laing spoke of the importance of confirmation as a concept, he made no attempt to define confirming behaviors specifically. Confirmation and disconfirmation later moved into the more general realm of human communication (Watzlawick, Beavin, & Jackson, 1967). The concept was recognized as necessary to all interpersonal communication which involved a subtle but powerful validation of the others self-image (Cissna & Sieburg, 1986, p. 231). Interpersonal communication scholars Cissna and Sieburg (1986), building on Laings earlier work, were the first to systematize confirming and disconfirming communication behaviors. For disconfirming behaviors, three clusters were identified (indifferent responses which deny existence or relation; impervious responses which deny the self-experience of the other; and disqualifying responses, which deny the others significance). For confirming behaviors, which is of the greatest interest to this review of customized marketing materials, three clusters were also identified: Recognition includes such relevant behaviors as speaking directly to a person and allowing the person the opportunity to respond without being interrupted or having to force his or her way into a monologue. Acknowledgment is a relevant and direct response to a persons communication. Endorsement is the acceptance of the others feelings as being true and accurate: It means simply letting the other be, without blame, praise, analysis, justification, modification, or denial (p. 238). The most relevant with regards to customized marketing to an individual is acknowledgment, which is demonstrated by a relevant and direct response to his or her

Dialogue, Customized Marketing Materials and Affective Responses 7 communication (p. 237). They even state that acknowledgment by responding directly is probably the most valued form of communication (p. 238). As new technologies allow for customized marketing materials, innovative marketers are able to send a relevant message to an individual prospect that would be different from the message sent to someone else (Bennett, Chan, & Pflum, 2005). In their qualitative study of marketers who use personalized marketing campaigns, they found that marketers believed that personalized marketing is more targeted and therefore more effective: The more interactive, relevant and personal a campaign is, the more likely it is to get a response from the consumer (p. 15). In The Power of Personalization (2008) the CMO Council states that people are looking for a sign that companies know something about them, and actually care about and understand their personal circumstances and dynamics (p. 3). A commonality in these views of effective communication is that relevancyhow a message is direct and in response to the initial part of the dialogueis a key component in the continued communication between two parties. We now have rules that may govern this nascent conversation and the interaction between marketers and consumers, but how does this persuade the consumer in order to shape attitudes?

Persuasion Persuasion is defined simply as attitude change resulting from exposure to information from others (Olson and Zanna, 1993, p. 135). Research into persuasion has evolved over the years (dating back to Aristotle and his thoughts on rhetoric), but the more recent initial work on attitude change began in the psychology field with Carl Hovland and associates 1950s-era exploration of learning theory as a way of explaining attitude change.

Dialogue, Customized Marketing Materials and Affective Responses 8 Learning Theory and Classical Conditioning With its basis in learning theory, Hovland (1953) theorized that attitude change took place in the same way that initial learning took place: to affect an attitude change within a person, that person must learn information that will change his or her attitude. Through controlled experiments using single variables, research showed that single exposures to a mass communication stimulus did not change strongly held attitudes (Hovland, Lumsdaine, and Sheffield, 1949), furthering Hovlands belief that attitude change occurred over time and was an uninvolved/passive endeavor. The learning theory research was expanded by the application of classical conditioning to the attitudinal change process. Staats and Staats posited that attitudes were changed by the emotional meaning of language (1957) which transferred positive or negative feelings associated with the word to create an emotional response. This classical conditioning approach has often been applied to advertising, specifically as an explanation of Petty & Cacioppos (1986) peripheral route (Shimp 1981; Mitchell and Olson 1981; Edell and Burke 1986). Cognitive Response Model Another newer model of persuasion is Greenwalds cognitive response model (Greenwald 1968). He felt that attitudinal change was not just learning, but involved a second processing step. In other words, a persuasive message, when received, allows the receiver to learn the material, but may not affect a change in the receivers attitude. After reception of the message, a person relates it to information and attitudes they already possess. Greenwald argued that this second step, of relating new information to existing attitudes, is a vital part of any persuasive communication. Greenwalds way of thinking has spawned three major process models of persuasion (the single-process information-processing theory, and the dual-process heuristic-systematic and

Dialogue, Customized Marketing Materials and Affective Responses 9 elaboration likelihood models) which emphasize that persuasion is a process that occurs through several steps and over time. Over time, persuasion research has continued to show a great interest in cognitive processes (Chaiken and Stangor, 1987). Single-Process Model (Information-Processing Theory) Pioneered by William McGuire (1968, 1976, 1989), the information-processing theory states attitudinal change occurs in a number of steps (initially six but expanded to twelve in later research) which happen in a set order ranging from exposure to a message, to interest in a message, to comparison with existing information, to action. Information-processing theory has been used to look at consumer choice by James Bettman (1971, 1979) and colleagues (Bettman, Luce, & Payne, 1998), researching how consumers form attitudes and make decisions. Bettman believes that preferences for options of any complexity or novelty are often constructed, not merely revealed, in making a decision (Bettman, Luce, & Payne 1998, p. 188). Dual-Process Models The two dual-models examined here are the heuristic-systematic (Chaiken, Liberman, & Eagly, 1989) and elaboration likelihood (Petty and Cacioppo, 1986) models. The commonality between the models is that the receiver of a message has two different ways of processing information: a high-involvement process emphasizing information processing (for Chaiken et al., systematic; for Petty & Cacioppo, central route) and a low-involvement, more simplistic, process using aspects of the message that do not require actively processing the message (for Chaiken et al., systematic; for Petty & Cacioppo, peripheral route). Petty and Cacioppos elaboration likelihood model (1986) sets out that communication is processed along two tracks, a central route and a peripheral route. Central processing occurs when

Dialogue, Customized Marketing Materials and Affective Responses 10 people are actively engaged in processing the information contained in the message and engage in message- and issue-relevant thinking (Chaiken and Stangor, 1987) and the likelihood of elaboration is high (Cacioppo and Petty, 1985). Once the receiver has processed the information, persuasion occurs if the receiver is convinced by the message to change an attitude. The peripheral route is when the receiver is influenced more by the source of the message or contextual factors than the actual message (Lutz, 1985) and the likelihood of elaboration is low (Cacioppo and Petty, 1985). Attitude changes that occur via the peripheral route do not occur because an individual has personally considered the pros and cons of the issue, but because the attitude issue or object is associated with positive or negative cues-or because the person makes a simple inference about the merits of the advocated position based on various simple cues in the persuasion context (Petty, Cacioppo, & Schumann, 1983). While Chaiken states that heuristic and central route are interchangeable (Chaiken and Stangor, 1987), she feels that other researchers have confused the terms by equating them, restricting the term peripheral processing and diluting the meaning of heuristic processing. The heuristic model states that persuasion is often mediated by simple decision rules that associate certain persuasion cues with message validity. In contrast, the peripheral route refers to a family of attitude change theories that specify factors or motives that produce attitude change without engendering active message and issue-relevant thinking (p. 593). So heuristic processing, along with other models such as classical conditioning, can be viewed as subsets in the peripheral route. Many studies have used elaboration likelioods peripheral route as a way to explain advertising effects (e.g., Petty, Cacioppo, & Schumann, 1983; Batra and Ray, 1985; Burke and Edell, 1989). In looking at customized marketing materials, utilizing relevant and confirming

Dialogue, Customized Marketing Materials and Affective Responses 11 messages may push processing of the message from the peripheral route to the central route, where more direct and immediate attitudinal change can take place (CITE).

Measures Attitude toward the ad (Aad) A commonality in these views of effective communication is that relevancyhow a message is direct and in response to the initial part of the dialogueis a key component in the continued communication between two parties. Attitude toward the brand (Ab) A commonality in these views of effective communication is that relevancyhow a message is direct and in response to the initial part of the dialogueis a key component in the continued communication between two parties. Ad Promises Peterson and Malhorta (1998) created and tested a new scale to measure affective response in advertising called Ad Promises. This scale is based on Rossiter and Percys (1987) eight purchase motivations. These motivations correspond to Stein and Trabassos (1992) basic set of higher-ordered goals. In seeing the overlap of the two conceptualizations of motivation, Peterson and Malhorta desired to operationalize Rossiter and Percys list as Ad Promises to capture consumers affective response. In a field study of 430 participants, Peterson and Malhorta (1998) establish the reliability and validity of their Ad Promises scale. Using a Liekert-type scale anchored with strongly agree and strongly disagree, participants were asked a series of questions pertaining to their response to advertising stimuli that could be grouped into the eight Ad Promises (problem removal, problem

Dialogue, Customized Marketing Materials and Affective Responses 12 avoidance, incomplete satisfaction, mixed approach-avoidance, sensual gratification, intellectual stimulation, social approval, intrinsic satisfaction). The Ad Promises scale was found to be reliable and valid in measuring the source of adbased affect and were also found to have a relationship with previous affective measurement constructs: attitude-toward-the-ad (Aad) and attitude-toward-the-brand (Ab). The Ad Promises scale, by using generic themes, can be used to measure different advertising stimuli and multiple key motivators to be identified. Effective Measures [Effective response measurements (higher response rate, increased sales, etc.)]

A Brief Study Proposal To test if customized marketing material increases or decreases the affective response (Aad) from traditional marketing material, as well as any related Ab measurement, an experimental study could be conducted utilizing a control group given traditional marketing materials and another group exposed to customized materials. For example, if the marketing campaign under investigation were college recruiting materials, high school students could be used as both the control and experimental groups. The experimental design for this research could be a pretest-posttest control group construction consisting of two sample groups: R R O1 O3 X1 X2 O2 O4 where X1 is high-level customized recruiting material control group. X3 is mass produced recruiting material

Dialogue, Customized Marketing Materials and Affective Responses 13 A questionnaire will be given to all participants to set a baseline for their opinions about the university and to collect information about each participant for use in customizing marketing materials. Each group would then be exposed to marketing materials: The control group will receive a current mass produced marketing brochure from the university (X2); One group would receive a highly customized brochure containing the participants name, more detailed information and photos about his or her interests. After the exposure, a second questionnaire would be given to the participants. They will be asked a series of questions relating to their emotional response to the marketing material they received, as well as questions about opinions toward the university that were also asked on the pretest questionnaire. Statistical analysis could be done to determine if any relationship exists between the affective response to the university marketing materials (Aad) and the attitude toward the university (Ab) in light of the creation and reception of customized marketing materials.

Conclusion In their seminal article Patterns of Interactional Confirmation and Disconfirmation, Cissna and Sieburg (1986) write that confirming response follows the structure of a dialogue: It is not a one-way flow of talk; it is not a trade-off in which each speaker pauses and appears to listen only in order to get a chance to speak again. It is a complex affair in which each participates as both subject and object, cause and effect, of the others talk. In short, confirming response, like all communication, is not something one does, it is a process in which one shares. (p. 238)

Dialogue, Customized Marketing Materials and Affective Responses 14 To paraphrase this in light of customized marketing communications: Marketing is not a one-way flow of talk; it is not a trade-off in which the marketer pauses only in order to get a chance to send a message again. It is a complex affair in which the marketer and the consumer participate as both subject and object, cause and effect, of the others messages. In short, confirming customized marketing, like all communication, is not something one does, it is a process in which one shares.

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