Once information enters memory system it is stored in different formats, this is coding. Baddeley gave different lists of words to 4 groups of p's. G1: Acoustically Similar, G2: Acoustically Dissimilar, G3: Semantically Similar, G4: Semantically Dissimilar. P's were shown the original words and asked to recall them in correct order- immediately after hearing it (STM Recall) tended to do worse with acoustically sounding words as it conflicted with each other.