Advertising effects on consumer welfare: Prices paid and liking for brands selected

The effect of advertising on consumer welfare has been the subject of dispute among economists, arising largely from disagreement among scholars regarding the persuasive versus the informative role of advertising. This paper reports two experiments that explore the welfare implications of advertising effects. Experiment 1 shows that the same advertisements can either increase or decrease prices paid for selected brands, depending on the degree to which the choice situation requires brands to be recalled in order to be considered. However, an increase in prices paid caused by advertising does not necessarily imply detrimental effects on consumer welfare. Experiment 2 shows that, even under circumstances in which differentiating advertising leads consumers to select brands with higher average prices, it can provide useful information to consumers that allows them to make purchases that are more in line with their personal tastes than are the choices of consumers not exposed to the advertisements.     

Effects of culturally verbal and visual congruency/incongruency across cultures in a competitive advertising context

Existing consumer behavior theories suggest that consumers tend to recognize, better comprehend, and respond favorably to information that is both relevant and consistent with their beliefs and values. This study extends these theories by employing cultural arguments and pictures to examine the effects of culturally verbal and visual congruency/incongruency on consumer ad and brand attitudes in multiple-ad and multiple-brand environments. The studies were conducted with subjects in Canada and China. The results suggest that, when the contrast ad is culturally incongruent, an ad containing a culturally congruent argument and congruent picture elicits the most positive responses, compared to other ads with different combinations of arguments and pictures. However, an ad containing a culturally incongruent argument and incongruent picture also elicits more positive responses than an ad with a culturally congruent argument and incongruent picture or a culturally incongruent argument and congruent picture.     

基于品牌战略的广告策略研究——广告策略在医药保健品、化妆品行业的应用

随着我国经济建设的逐步发展,改革开放的不断深入,我国企业面临的竞争日渐加剧,企业之间的竞争已经不再只局限于产品之间的竞争,越来越多的企业意识到品牌的重要性,品牌已成为一种新的国际语言,越发受到重视。广告策略作为品牌战略的重要环节之一,在设计以及实施的过程中,与品牌战略之间具有密切的联系。因此,建立广告策略与品牌战略结合模型,深入讨论基于品牌战略的广告策略在医药保健品、化妆品行业的应用很有必要。     

Corporate Advertising Pass-through onto the Brand: Some Experimental Evidence

While researchers and managers have speculated that corporate advertising can have an impact on brand knowledge, to date there is no empirical support for such "pass-through." We report on a laboratory study manipulating the presence or absence in a brand ad of retrieval cues for subjects' corporate advertising and their pre-existing brand knowledge. We found evidence of pass-through, but it was moderated by the retrieval of subjects' pre-existing brand knowledge. Our results have theoretical and managerial implications, and suggest a number of interesting opportunities for future research.     

An exploratory analysis of the determinants of cooperative advertising participation rates

The paper offers an exploratory empirical investigation of the determinants of cooperative advertising participation rates. Using data for 2,286 brands, we examine the relationship of participation rates to national advertising expenditures by brand. We also consider how participation rates vary with average manufacturers’ margins by industry, average retail margins by category, and additional category-level variables. Reflecting the discrete nature of the dependent variable, the analysis employs discrete choice estimation techniques instead of OLS regression. The results reveal a significant quadratic relationship between advertising and participation rates. We interpret this and other significant findings in the context of existing work.     

Do social advergames affect brand attitudes and advocacy?

Advergames have been used for some time as a form of branded entertainment designed to engage prospective customers in a branded activity for an extended period of time. Increasingly, advergames are imbued with social qualities related to the rise in popularity of social media, especially social networking. Despite the popularity of social advergames, little is known about the brand benefits of incorporating social features into games. Moreover, while creativity has been studied in the context of more traditional advertising, less is known about its effects on brand development in the context of advergames. Although advertising creativity, as characterized by novelty and relevance, has been shown to impact advertised brands, it is not clear how creativity interacts with advergame socialness to affect brand development. To address these gaps in the literature, this paper reports on three experimental studies that compare the brand effects of advergames that enable social interactions to advergames that are not social. The results indicate that relative to non-social advergames, social advergames result in more positive game attitudes, attitudes toward the brand sponsor, and brand advocacy, particularly when advergames are novel. Finally, this article discusses implications for managers and directions for future research.     

Variety-Seeking and Time of Day: Why Leader Brands Hope Young Adults Shop in the Afternoon,but Follower Brands Hope for Morning

The relationship between variety-seeking behaviors and the time of day at which choices are made is investigated. It is proposed that more variety-seeking will typically occur during times of day when people are experiencing arousal lows rather than arousal peaks. Two studies support this view. Moreover, it is also shown that the incidence of choice is greater for follower brands during day periods when variety-seeking is heightened, whereas leader brands fare better in periods when variety-seeking is relatively minimal.This revised version was published online in May 2005 with a corrected cover date.     

从“变形金刚”看我国电影的植入式营销

随着我国商业电影市场的发展,越来越多的商业片都加入了植入式广告。但目前由于国内对隐性广告处理方式不恰当。对插入的内容和位置考虑不周以及缺乏对营销美学的深入分析等,对品牌形象造成了负面影响,导致隐性广告”不隐性”的问题。隐性广告要服从剧情要求,过度明显的功利性广告效果会损害观众的利益。应加强品牌与影片的内在逻辑性,建立有效的消费者识别的植入式营销,将植入式营销进行有情节的合理设置,以达到事半功倍的广告效果,实现经济效益的双赢。     

Impacts of Generic and Brand Advertising in the U.S. Potato Market

Abstract

The impacts of generic and branded advertising in the U.S. fresh potato, retail frozen potato, and potato chip markets are examined under exogenous and endogenous raw potato supply. The Almost Ideal Demand System is used to estimate the demand components. The general equilibrium elasticities derived from the complete model are used in a simulation analysis to assess the cross-commodity effects of incremental increases in advertising expenditures on equilibrium prices, quantities, revenues, and profits in each sector. The endogeneity of grower supply mitigate the impacts of advertising in the raw commodity sector and in the retail sectors.     

Intergenerational appeal in advertising: impacts of brand–gender extension and brand history

An intergenerational (IG) appeal in an advertising campaign usually presents a nostalgic image with family portraits, emphasizing the traditions that have been passed on from generation to generation or harkening back to the ‘good old days’ between father and son, or mother and daughter. The IG appeal can effectively enhance a brand's image and induce that all-important consumer purchase. This paper takes gender differences (father/son or mother/daughter) into consideration while examining two moderators related to branding: (in)congruent brand–gender extension and brand history. Results indicate that a well-established brand history enhances the effects of the IG appeal. In addition, a congruent brand–gender extension increases the effects of the IG appeal. More interestingly, IG appeals can be effective in presenting a less established brand which has an incongruent brand–gender extension.     

Culture-Based Values and Management Style of Marketing Decision Makers in Six Western Pacific Rim Countries

ABSTRACT

Given increasing advertisement clutter, advertisers are increasingly trying unconventional means to attract consumers' attention. One such method involves the use of incongruent ads, which are believed to attract viewers' attention. This research was conducted to ascertain the impact of audiovisual congruency in ads and the moderating role of product involvement on three facets of consumer response: attention to the ad, attention to the brand, and purchase intentions. Participants were shown one of eight TV ads for 30 seconds, following which they were asked to rate the ad on several dimensions. Results indicated, as expected, that congruent product and music type elicited favorable consumer responses. However, contrary to earlier findings that congruency in ads affects consumers in both high- and low-involvement conditions, we find that that the level of involvement moderated this effect on some consumer persuasion measures. In particular, participants under high-involvement conditions were found to be less influenced by congruent product–music situations. Implications for advertisers are discussed.     

New Brands Versus Brand Extensions, Attitudes Versus Choice: Experimental Evidence for Theory and Practice

The current study compares better-fitting and worse-fitting new brand names and brand extensions on brand attitudes and choice shares across situations that differ in terms of the amount of product information available and consumer knowledge of the target product category (which had limited effects), 35[emsp4 ]mm cameras (choice-set competitors Nikon and Minolta). While brand extensions and better-fitting brands generally enjoyed more positive brand attitudes and larger choice shares, effects were moderated by product information. When information was limited to brand name and price, the better-fitting brand extension (Sony) commanded more share than did the better-fitting new brand (Optix) which in turn commanded more share than did either the worse-fitting extension (Nike) or the worse-fitting new brand (Topix). But when information on product features was added, target brands were chosen similarly across brand names where the better-fitting new brand Optix garnered slightly (non-significantly; 5%) more share than the better-fitting extension Sony. This weak preference was reversed, however, in the attitude data where Sony was rated significantly higher in liking than Optix. Two focal conclusions emerge. First, new brands can perform as well as or better than brand extensions when consumers process product information. In this study, brand-extension advantages were confined to situations of limited information processing and better fit. Second, since branding effects differed across attitudes and choice, researchers hoping to duplicate in the laboratory the types of branding effects likely to occur in the marketplace may want to expand their traditional focus on attitudes to include choice.     

选择与选择成本——品牌降低选择成本的机制分析

本文通过对选择爆炸式增长的描述,抽象出一般选择过程模型,并深入分析这一过程中所发生的成本及构成,证明品牌正是通过降低消费者的选择成本提高了选择效率,而企业外部顾客的选择效率决定了处于过剩阶段企业的内部价值的实现和内部效率的高低。本文区分了交易费用与选择成本的差别,进一步深化了对"品牌经济学"分析范式的核心范畴——选择成本的认识。