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Psychologists distinguish between two ways of processing sensory stimuli:
When Stevie Wonder's hands touch the keys of a piano and he hears a sound come from the pressure he places on the keys, bottom-up processing is taking place. When he listens to a recording of one of his songs and modifies it based on his past music experience, top-down processing is occurring.
Another example involving both bottom-up and top-down processing is putting together a jigsaw puzzle (Friedrich, 2001). If you don't have the puzzle's original box with a picture of the finished product, you have to look at the shapes and colors of the pieces to determine how they fit together. That is essentially bottom-up processing.
But if you have the picture on the box to go by, you can select a particular area to work on and choose pieces that fit into that area. For example, if you know that a castle is on the right side of the puzzle, you can start by picking out only those pieces that look like they are part of a castle. Your task of fitting the pieces together then becomes much easier-you have fewer pieces to work with and have a general idea of how they should look once they are put together. Your selection process, which is based on prior knowledge, is an example of top-down processing.
Friedrich, F. (2001). Cognitive psychology 3120: Online notes. Retrieved from http://www.psych.utah.edu/friedrich/friedrich.html.