Advertising visuals in global brands’ local websites: a six-country comparison

The visual strategies employed in top global brands’ local advertising websites were compared between two groups of nations: the Western group, consisting of the US, UK and Germany; and the Eastern group, consisting of Japan, Korea and China. The results of a content analysis of 253 web ads show a clear pattern of differences in the role of visuals (literal vs symbolic), the use and role of celebrity models, the use of photographs vs illustrations, and the frequency of product portrayals between two groups. Ads from high-context nations tend to rely on symbolic visuals, celebrity models featured as characters, mixed use of photographs and illustrations, and indirect portrayals of advertised products. Ads from low-context nations are found to be the opposite, reaffirming the association between Hallx2019;s information contextuality and advertising visual strategies. The findings imply that the idea of employing advertising visuals that reflect the communication styles of a particular national market appears to be a promising strategy to effectively reach consumers around the world. With this in mind, multinational advertisers might prefer to implement differentiated ad visual strategies in web advertising for Western and Eastern markets.     

Advertising’s sequence of effects on consumer mindset and sales: A comparison across brands and product categories

Advertising has the power to influence how consumers experience, think, and feel about brands, but the sequence of these mindset effects may differ by brand and category. This paper analyzes how the mindset factors of cognition, affect, and experience mediate advertising effects on sales, using data from 178 fast-moving consumer good brands in 18 categories over seven years. The authors compare the models proposed in the literature and conclude that the concept of sequentiality in advertising effects holds up well. Importantly, the sequence varies across brands, with the affect → cognition → experience (ACE) sequence being the most common. Brand differentiation and the hedonic versus utilitarian nature of the product category moderate the incidence of the ACE sequence: this sequence is even more likely for utilitarian products and less differentiated brands. For managers, the results show that the last mindset factor in the sequence is the most important in driving sales, with cognition being most responsive to advertising among the mindset factors. Moreover, in utilitarian categories, highly differentiated brands can expect about seven times higher advertising responsiveness of affect than less differentiated brands.     

Advertising and Product Quality: Are Heavily Advertised Products Better?

It is often conceded that heavily advertised products cost more than those that are not advertised extensively. But there is considerable disagreement concerning what this difference means. Advertising's critics often claim it is evidence of monopolistic control over supply and prices, while advertising's defenders generally contend it reflects the higher quality of advertised brands. Surprisingly, there has been almost no research into whether or not heavily advertised goods are of better quality. As a preliminary inquiry into this interesting question, this paper attempts to examine the relationship between advertising expenditures and product quality.     

“New and old”: Consumer evaluations of co-branding between new brands and Chinese time-honored brands

Nowadays, rejuvenation of Chinese time-honored brands, a symbol of Chinese traditional culture, is manifested in their co-branding with new brands. With focus on sincerity and excitement, two fundamental dimensions of brand personality, the authors explore this co-branding strategy which remains unexplored by the extant literature. Based on the integration of brand personality and Stereotype Content Model, a new mechanism is constructed from the perspective of consumers, with brand admiration being the underlying mechanism, as well as product category—hedonic vs. utilitarian—being a boundary condition. Through three experimental studies, the results show that the exciting (vs. sincere) personality of new brands increases consumers’ admiration for both allied brands, which in turn enhances co-branding evaluations, and that the advantage of the exciting personality holds for the hedonic co-branded product, but disappears for the utilitarian one. The research contributes to the co-branding literature and provides implications for brand partner selection and co-branded product design.     

Technology and intermediation: do banks pass the gains to their customers?

A key function of the banking system is to facilitate intermediation between borrowers and lenders. In this paper we single out for attention the money transmission function of banks to test whether intermediation costs have been reduced by technology and passed on to consumers. Using data for the commercial banking sector in Ireland over the period January 1986 to August 1996, we find that the gains from technology in the provision of banking services, provided they exist, have not been passed on to the bank customers in the form of a lower bank interest rate spread.     

Food Advertising and Obesity Prevention: What Role for the European Union?

When the Television Without Frontiers Directive (TVWF Directive) was first adopted in 1989, there was very little discussion on how food advertising should be regulated at Community level. However, things have changed as a result of rising levels of obesity in all EU Member States. Consequently, several stakeholders have suggested that the advertising of unhealthy food to children should be restricted. This article analyses whether and how, bearing the obesity epidemic in mind, the European Union could regulate the marketing of food high in fat, sugar and salt to children (HFSS food). It starts by presenting the evidence supporting such regulation. It then focuses on the contribution which the TVWF Directive and the Audiovisual Media Services Directive (AVMS Directive) could make to the debate. It finally looks at the broader regulatory framework by discussing their relationship with other instruments of Community law relating to food advertising, and in particular the Unfair Commercial Practices Directive (UCP Directive) and the recently adopted Regulation on nutrition and health claims made on foods.

Clustering,MNEs, and Innovation: Who Benefits and How?

Abstract

This paper explores three under-researched questions in the literature on multinational enterprises (MNEs), clustering, and innovation. First, to what extent does multinationality lead to higher rates of innovation activity and performance? Second, what, if any, is the link between MNE cluster location and innovation inputs and outputs? Third, are there any significant differences between enterprises belonging to domestic and overseas MNEs in these regards? Evidence is based primarily on 11,775 firms derived from the UK Community Innovation Survey 2007. Diversity in the regional economy exerts the most consistent positive influence, followed by the scale of employment in the enterprise’s own industry. Enterprises belonging to domestic MNEs appear to exert higher levels of innovation effort. However, evidence regarding their superiority in innovation outputs was weaker. Contrary to Michael Porter’s work, it appears that enterprises belonging to overseas firms benefit more than domestic firms.     

Who is the Athlete Endorser? A Cross-Cultural Exploration of Advertising Practitioners’ Views

ABSTRACT

This study, via the use of focus groups, explores the common meanings that advertising practitioners in 10 countries associate with athlete endorsers. The study's macro perspective brings a unique understanding of practitioners’ universal thinking and practices in relation to athlete endorsement. It reveals that practitioners across the world correlate athlete endorsers with a wide range of positive and useful psychological, social, physical, skillfulness, and sport meanings. In particular, authenticity, objective performance, and the athletes’ belonging to the realm of sport—considered by practitioners as a carrier of positive meanings and as a “meeting place” between audiences and endorsers—were identified as greatly contributing to athletes’ positive endorsement value. The article places the various universal dimensions of athletes raised by practitioners in a holistic conceptual profile, in order to help visualize and organize thoughts when selecting athlete endorsers for marketing campaigns.     

Leading national brands facing store brands competition: Is price competitiveness the only thing that matters?

Store Brands (SBs) have experienced a strong increase in both value and unit sales internationally during the last decades; thus their market share has been constantly growing. Starting from these considerations, the present work aims at deepening the topic of inter-brand competition within the FMCG market and, in particular, the market share trade-off between Leading National Brands (LNBs) and Store Brands. Our empirical analysis is based on panel data about 322 product categories sold within the Modern Grocery Distribution stores in the 2010–2013 period. Results obtained show: (i) the existence of a relationship between the increase in the LNB-SB price gap and the switching of market share from the former towards the latter; (ii) the consolidation of a change in consumers' purchasing preference in favor of SBs; (iii) the existence of an inverse relationship between the inter-brand competition intensity and the retail branding life cycle evolutionary stage, which is different for each product category.     

Who become serial and portfolio entrepreneurs?

“Serial entrepreneurs” run multiple businesses in sequence while “portfolio entrepreneurs” run multiple businesses in parallel; they differ from “novice entrepreneurs” who have so far operated only one venture. The present paper is the first to model occupational choices between all three entrepreneurial types: It goes on to discuss its theoretical predictions in the light of independent evidence about serial and portfolio entrepreneurship from the extant literature.     

Chinese Advertising and Advanced Chinese Culture

Chinese advertising has long been inseparable from the Chinese na- tional culture from late Shang Dynasty and early Zhou Dynasty when Jiang Ziya beat sword to spread sound to the 21st century when the badge of Beijing 2008 Olympic Games sweeps the whole world. With cultural trait as one of its fundamental character, advertising naturally becomes one     

Late Disclosure of Insider Trades: Who Does It and Why?

We attempt to understand the personal incentives that motivate corporate insiders to engage in unethical behavior such as delayed trade disclosure. Delayed disclosure affects corporate transparency and other shareholders in the firm potentially suffer investment losses because they are unaware of insiders’ activities. Using archival data from the 300 largest Australian firms between 2007 and 2011, the results show that risk factors such as insider age and tenure and wealth effects in the form of insider shareholdings affect the likelihood of delayed reporting. Governance positions such as committee membership mitigate this behavior. Our study highlights the importance of considering individual insider’s wealth and risk factors. The self-monitoring role of governance positions is also indicative of the effectiveness of internal corporate governance in the prevention of illegal insider behavior.     

Who are the essential and frontline workers?

Business Economics - Identifying essential and frontline workers and understanding their characteristics is useful for policymakers and researchers in targeting social insurance and safety net...     

Advertising and Steiner’s Dual Stage Model: Our Assessment

Between 1967 and 1979, we produced a number of studies that explored different facets of the economics of advertising. This work culminated in our 1974 book entitled Advertising and Market Power. Our leading hypothesis was that heavy advertising expenditures often but not always had anti‐competitive effects. And our primary empirical evidence in support of this hypothesis was that industries with heavy advertising expenditures also reported higher profit rates, which we interpreted as indicating that higher prices followed when manufacturers can effectively spend large amounts on advertising. Since that time, Robert Steiner has developed a model of firm behaviour for consumer goods industries. He finds that distribution margins are generally higher where manufacturer prices are lower. Furthermore, heavy manufacturer advertising is likely to depress distribution margins for heavily advertised products. While our earlier work implicitly assumed that distribution margins are generally the same regardless of the volume of advertising, Steiner’s results raise doubt on this assumption. Steiner’s model must therefore be acknowledged when interpreting our earlier findings.     

Has Advertising Lost Its Meaning? Views of UK and US Millennials

The findings of a study of Millennials in USA and the UK—an increasingly important and digitally savvy segment of consumers—reveal that they see advertising as Companies promoting a product or service to people through media. Their perception is simple and all-encompassing with no evidence that they distinguish between different types of media or different types of communication. Some variation between the views of Millennials in the two countries is also identified, although this is less than expected. The findings contribute to an important and continuing debate among academics and marketing practitioners over how advertising should be defined in today’s multichannel environment. The findings are also compared with other recent definitions of advertising, and their implications are discussed.     

Can Pokémon GO catch brands? The fit effect of game characters and brands on efficacy of brand communications

Given the recent popularity of augmented reality (AR) games, such as Pokémon GO, this study explores the congruence effect of game characters and brands on brand evaluations and the underlying mechanisms of the effect. Prior gaming experience and motivations are taken into account. An experiment reveals that inexperienced gamers are likely to have more favorable evaluations of the target brands when the images of game characters match the brand images, whereas these effects disappear for experienced gamers. Furthermore, the research demonstrates that experienced gamers are more likely to hold game-specific motivations than the inexperienced, while inexperienced gamers are motivated more by social interaction for playing AR games. Lastly, a mediation analysis reveals that social interaction-related motivation mediates inexperienced gamers’ preference of character–brand congruence. This study sheds light upon how AR games can be utilized by brand communicators.     

Advertising in China—Problems and Prospects

Economic reform in China has revived the importance of the market forces and of advertising. Although advertising has a less important role in the Chinese market than in Western countries, it is the fastest growing industry in China. Foreign participation in advertising is limited and contributes about 10 per cent of Chinese advertising revenues. This paper argues that there is ample opportunity for foreign advertisers. Nevertheless, because the Chinese market is different, foreign advertisers need to be patient when attempting to enter the market. The problems and prospects of advertising in China are pinpointed in this paper. Some precautionary measures for the advertisers are also discussed.