type appeal to most? What are the implications of this for advertisers?) and interpretation (How does
placement of an ad in this context affect positioning? How does the nature of different target segments of
subway riders affect interpretation?). Thus, this case can be used to illustrate the entire process of
perception as explained in the chapter.
This case allows for the psychological processes of perception to be linked to real-world marketing
implications. One item of interest not mentioned in the case that may be brought up during discussion is
how this unique appeal to the perception processes of consumers has created value for multiple
constituencies:
The consumers—the positive reception indicates that the ads have entertainment value during
an otherwise boring commute.
The media agencies—these agencies are new ventures carving out a multi-million dollar
industry. The cost of subway ads ranges from $35,000 a month to $250,000 a month depending
on the route.
The advertisers—there is no shortage of promotional choices for corporations and non- profit
organizations. However, subway tunnel advertising gives marketers one of the few options that
breaks through ad clutter in such a way that the consumer wants to see the ad, not to avoid it.
The transit agencies—most metropolitan transit agencies are struggling with ever tightening
budgets and with the balance of fare prices and demand. Many are therefore searching for
additional revenue streams such as concessions or advertising. Although in- station and in-train
advertising has been around since the early 1900s, subway tunnel agencies are forecasting that a
single transit company (which would receive between 25 percent and 60 percent of the revenues)
could earn as much as $200 million over 5 years.
Suggested Answers For Discussion Questions
CS 3.1 Based on the principles of attention presented in this chapter, explain why riders receive these
ads so positively. Be sure to consider the possible stimulus selection factors that apply.
This case is suited for illustrating various aspects of the perceptual process, including sensation,
exposure, attention, and interpretation. However, the concepts that best explain why this new
advertising medium should initially be successful are the stimulus selection factors of position
and novelty that contribute to attention. With respect to position, subway ads come into full view,
(20 minutes, Chapter Objective 3, AACSB: Reflective Thinking)
CS 3.2 It has been shown that consumers can habituate to a stimulus. Is there anything the ads’ creators
should know about adaptation and its potential impact on the success of these ads over time?
Some estimates show that more than 92 percent of consumers remember the advertised product,
whereas only 13 percent have the same level of recall when they see an ad on television.
(20 minutes, Chapter Objective 3, AACSB: Reflective Thinking)
CS 3-3. As you consider the companies that have used tunnel advertising, are there brands or products that