What is the hierarchy of effects theory?
The hierarchy of effects theory is an advertising model that guides consumers through awareness to purchase. The process, built on behavioral psychology, gradually increases consumers’ understanding of the product and brand until they are ready to buy.
The theory, introduced in 1961 by Robert Lavidge and Gary Steiner, posits six stages of consumer readiness. As the consumer moves through these stages, Lavidge and Steiner advised that advertisers move through three messaging strategies: cognitive, affective, and behavioral.
Creative management platforms help advertising teams efficiently make ads to reduce time to market and scale their production. These platforms also allow teams to collect data to monitor ad performance.
Stages of the hierarchy of effects theory
In the hierarchy of effect theory models, Lavidge and Steiner outline the stages advertisers should use when funneling shoppers toward buying. The six stages are:
- Awareness: Attracting a shopper’s initial attention is often considered one of the hardest parts of the process. Consumers are bombarded daily with social media, radio, television, and print advertisements. In the awareness stage, consumers push through the noise and notice a brand.
- Knowledge: Once a brand has a shopper’s attention, it’s time to inform them about a specific product. The consumer will want to know about its features and benefits and why it’s right for them. Brands can provide detailed product information through diverse outlets, including social media posts, content marketing, television commercials, or brochures.
- Liking: At this point, brands must turn from information-based to emotion-based advertising. The consumer knows a product’s features but needs to form an emotional desire for the brand or the product. Brands will often consider the potential customer’s motivations in this stage and create advertising around them.
- Preference: The consumer likes a product, but at this stage, they still aren’t sure if they should choose it over other brands. The company’s unique selling proposition (USP) comes into play at this stage as it has to differentiate itself from competitors.
- Conviction: The shopper knows they want to buy this particular product from this specific brand but may need a gentle nudge before they convert. For example, a company may send a relevant case study to a potential customer, or a car dealership may promote test drives.
- Purchase: In the final stage, the customer takes action and purchases the product. The company aims to make the purchasing process easy and pleasant to create customer delight and ensure brand loyalty.
According to the hierarchy of effects theory, the awareness and knowledge stages need a cognitive approach to marketing, appealing to the customer’s sense of logic or reason. The liking, preference, and conviction stages require an affective approach to connect with the consumer on an emotional level. Finally, the purchase stage needs a behavioral approach to get shoppers to take action.
Benefits of the hierarchy effects theory
Sometimes companies try to jump to the last couple of stages to speed up their return on investment (ROI). However, following all of the steps in the hierarchy of effects model can be beneficial because it:
- Provides a clear structure for campaigns. Teams have an outline based on consumer psychology, saving them time developing successful campaigns.
- Helps drive brand loyalty. Since the model takes customers through an entire nurturing process, they are likely to form a connection with the brand and its products.
- Increases conversions. The hierarchy of effects theory considers consumers’ cognitive needs and motivations, and teams can tailor their ads accordingly. If consumers feel ads are speaking directly to them, they’re more likely to select and purchase a product over a similar one from other brands.
Best practices of the hierarchy of effects theory
The model can lead companies to create more focused, targeted product advertisements. To increase their success with this process, companies should:
- Develop effective ads. Designing ads with suitable copy and visuals is crucial. Companies need to research their target audience and clearly convey their message.
- Create and share content on social media. The benefits of social network platforms can’t be understated. Companies can create a brand presence that encourages consumers to like and prefer their products above others.
- Monitor social media mentions. Re-sharing followers' positive reviews and responding to their complaints in an actionable way can go a long way in positioning a brand as likable and preferred, increasing consumers’ conviction that it's the right one for them. Companies can use social media monitoring software to streamline the process across platforms.
- Analyze key performance indicators (KPIs). Sometimes a consumer gets stuck at one stage in the funnel. Analyzing data such as the number of viewers or the click-through rate (CTR) on specific ads helps companies see where they can continue improving.
Discover more about how to create the best ads, track metrics, and better manage workflows with social media advertising software.