Research evidence to date suggests that the combined presence of item-specific and relational processing is necessary to induce higher memory performance of the target ad and proper evaluation of the target brand. This elaborative processing, however, requires cognitive capacity. In this paper, an item-specific-relational processing framework was employed to explain the roles of consumer product knowledge in the competitive and non-competitive ad contexts. Findings from an experimental study suggest that high-and low-knowledge consumers differed in product memory and evaluation in competitive and non-competitive ad contexts. Such differences could be explained by consumers' engaging in item-specific and/or relational processing depending on whether target brand information was presented with or without information on competing brands. It appears Psychology & Marketing, Vol. 28(4) For product information in ads to be stored in and retrieved from memory by consumers, the information should receive sufficient processing at the time of encoding. Research evidence to date suggests that the combined presence of relational and item-specific encoding is necessary to induce higher memory performance and favorable evaluation of advertising claims (Kent & Machleit, 1990;Meyers-Levy, 1991). Item-specific processing focuses on elaboration on information specifically described for an object, whereas relational processing involves emphasizing similarities or commonalities among pieces of information associated with the product category. Both types of processing appear to make a distinct contribution to consumer learning in terms of ad memory and product judgments. What is more important is that only when people are engaged in both types of processing will they be able to judge, with reasonable certitude, how good a target product's favorable features are in relation to competing brands in the same category (Einstein & Hunt, 1980).:Although item-specific and relational processing should enhance product memory and evaluations, conditions under which the two types of elaboration are operative have not yet been well delineated. The elaborative processing during encoding seems to be manifested differently with the level of product knowledge (Alba & Hutchinson, 1987;Brucks, 1985). For instance, when exposed to a new laptop ad with technological jargon, high-knowledge consumers may be able to understand those attributes (item-specific processing) and evaluate the item's quality in relation to competing brands (relational processing), while lowknowledge consumers may not understand the attributes properly or evaluate the brand due to their lack of knowledge about laptops. However, prior research has not examined the potential role of consumer knowledge in moderating the effects of item-specific and relational processing on product memory and evaluations. Therefore, to understand memory performance and product evaluations more precisely, the role of product knowledge should be incorporated in a combined item-specific-relational ...