Final answer:
True, encoding happens when customers or individuals transform incoming messages into recognizable ideas, using semantic, visual, and acoustic encoding, and this cognitive process plays a crucial role in how information is stored in memory.
Step-by-step explanation:
True, encoding does occur when customers or anyone convert messages received into familiar ideas. Encoding is part of the cognitive process that allows information to be committed to memory. It involves taking input from the environment and converting it into a form that is understandable and stored in the brain. There are three main types of encoding: semantic, visual, and acoustic encoding.
Semantic encoding involves the encoding of words and their meaning, as demonstrated by William Bousfield in 1935. An experiment showed that participants were more likely to recall words grouped by similar meanings, indicating they paid attention to the meanings of words to remember them.
Visual encoding involves creating images in the mind to remember information such as car, dog, and book. These high-imagery words are often remembered more easily than low-imagery words like level, truth, and value. Acoustic encoding, on the other hand, is about the encoding of sounds, especially words.
Customers often utilize these encoding processes in everyday interactions, turning complex messages into encoded memories through automatic or effortful processing, which can affect their decisions and behaviors as consumers.