The process of converting information from one form to another is called coding.
Baddeley gave different lists of words to participants to remember.
Similarly sounding words, different sounding words, words with similar meanings and words with different meanings.
Participants were shown the original words and asked to recall them in the correct order.
When doing this immediately (STM) they tended to do worse with acoustically similar words.
If they recalled after 20mins (LTM) they did worse with the semantically similar words.
This suggests that information is coded semantically.
Mille observed everyday practice, noting that most things come in 7s, suggesting capacity is 7+-2 items.
He also noted that people can recall 5 letters and 5 words by chunking.