Investment in online advertising and return on sales: Does it pay to outsource the services to an advertising agency?

Abstract

The effect of investing in online advertising on a firm’s financial outcomes can depend on whether or not the development and implementation of advertising campaigns are managed by advertising agencies. Agencies may have experienced professionals or workload to perform these jobs, but the costs are greater. This paper aims to investigate the effects of investments in digital marketing on the financial outcome of a company’s services, comparing whether or not it is outsourced to advertising agencies. The secondary data relates to services advertised and marketed by a firm. We tested the possible moderating effect of outsourcing the service in the relationship between investment in online advertising (Google and Facebook) and return on sales (profit margin), by controlling the effect of covariates. Through four regression analyses, the results showed that outsourcing the service moderates the relationship. Specifically, the higher the amount of advertising investment, the more it pays to outsource the service to an advertising agency in order to generate greater profit margin. But with a low investment value, it does not pay to outsource. This study helps to identify situations in which it pays to outsource digital marketing services to an advertising agency.     

Here or there? Consumer reactions to corporate social responsibility initiatives: Egocentric tendencies and their moderators

This research examines how consumers react to corporate social responsibility (CSR) programs that vary in geographic focus. Three experiments compare consumers' patronage of a company in response to local and distant CSR initiatives. The extant egocentrism literature suggests that a CSR activity focused locally, and thus, with greater personal relevance, should increase patronage of the company responsible for the CSR activity. Indeed, this egocentric bias, exhibited in the form of increased purchase intentions or actual choices, is found across all three studies. However, these egocentric tendencies are moderated by consumers' superordinate identities. In study 1, consumers' greater intentions to patronize a company whose CSR activity is domestic vs. foreign are moderated by their sense of global identity. In study 2, consumers' increased choices of a company whose CSR activity is in their home state vs. a distant state are moderated by levels of environmental consciousness. Finally, in study 3, increased patronage of a company whose CSR activity focuses in consumers' home city vs. a distant city depends on the salience and level of consumers' superordinate group identity.     

Consumer perceptions of carbon labeling in print advertising: Hype or effective communication strategy?

Eco-labels are being used more frequently in the marketplace. Recently, carbon-neutral labels have emerged on product packaging and advertisements as a popular form of eco-label. How consumers view these specific labels is of both conceptual and practical interest. Therefore, in a mixed-experimental design building on congruity theory and Deighton's two-step model of advertising effectiveness, the authors examine how consumers view the credibility and environmental concern of companies who use these labels, as well as their resulting purchase intentions. A 2(product) × 2(label) × 3(information) mixed design was used to examine consumer perceptions and behavior intentions. Product category (environmentally neutral vs. environmentally harmful) was a within-subjects factor; the presence/absence of the carbon-neutral label and information (positive/negative/control) was both manipulated between-subjects factors. Results show that the presence of a carbon-neutral label in an advertisement, regardless of the type of product, leads to more favorable perceptions of company environmental concern. However, there is a more pronounced increase in consumer perceptions of company environmental concern for an environmentally harmful product than for an environmentally neutral product.     

Do feminists still respond negatively to female nudity in advertising? Investigating the influence of feminist attitudes on reactions to sexual appeals

To test the belief that feminism and sexualization of women in advertising stand in opposition, this study employed a large US national sample (N = 1298) to examine how consumers’ feminist attitudes differentiate and predict their ethical judgment and ad-related evaluations of sexual images of women in advertisements. The results indicate that (1) consumers with higher feminist attitudes evaluated sexual ads more favorably than those having lower feminist attitudes, and (2) consumers’ feminist attitudes positively predict ad-related evaluations with full mediation of ethical judgment. These findings, which diverge from previous research, may indicate that contemporary feminists view sexual images of women differently than in previous decades. Theoretical and practical implications are described.     

Consumer–brand assemblages in advertising: an analysis of skin,identity, and tattoos in ads

This paper discusses how the use of tattoos in advertising renders diverse brand–consumer assemblages visible. In considering advertising practitioners as professionals of entanglement, the paper emphasizes the embeddedness of practitioners’ use of tattoo symbolism in institutionalized marketing systems and in the cultural history of tattooing. In accordance with the recent emphasis on the importance of material devices for understanding contemporary sociality, this paper presents a semiotic analysis of a convenience sample of advertisements depicting tattoos. Tattoos are productive for the study of brand–consumer assemblages because they are situated on the human skin, which is a mediator between the individual and the socio-material world. Furthermore, tattoos reproduce discourses of both mainstream fashion and deviant subcultural identification, which imbue tattoo symbolism with communicative potency. This analysis demonstrates how the emergence of brand tattoos in advertising challenges the dominant consumer centrism in consumer research and suggests a networked, emerging understanding of the subject in which agency is distributed in socio-technical assemblages.     

Why do Caucasian advertising models appeal to consumers in Taiwan?

To test the influence of model ethnicity on advertising effectiveness in East Asia, this research proposed a cue-triggered value-expressive model, according to which positive attitudes towards western models help consumers with independent self-concepts express themselves. Western models generated more favourable ad responses (ad credibility, diagnosticity and attitudes), promoted stronger self–brand connections and led to more favourable brand attitudes than did Asian advertising models among independent respondents in Taiwan. In contrast, consumers with interdependent self-concepts did not exhibit such differences. Independent self-concepts also consisted of two sub-dimensions: horizontal individualism focused on the desire to be different, and vertical individualism centred on the desire to be superior. The former dimension accounted for the enhanced effects of western models. Three experiments confirmed that expressing positive attitudes towards these advertising models served value-expressive functions among consumers with uniqueness self-concepts when they read ads promoting products that were publicly (Study 1 and 3) or privately (Study 2) consumed.     

Does advertising indicate product quality? Evidence from prelaunch and postlaunch advertising in the movie industry

Literature on the informative role of advertising indicates that advertising quantity can serve as an indicator of product quality. As product life cycles grow shorter, firms in many industries spend significant amounts on advertising during the prelaunch period to create large initial demand. Thus, the role of prelaunch advertising may differ from that of postlaunch advertising, and a proper understanding of these differences is important. This study provides an empirical investigation of whether advertising is a reliable indicator of quality before and after product launches, using the data from the movie industry. Analyses of 1078 movies released during 2003–2011 show that postlaunch advertising is a reliable quality indicator and increases revenues, whereas prelaunch advertising is not a reliable quality indicator, even if it leads to higher revenues.     

Anarchy of effects? Exploring attention to online advertising and multiple outcomes

This research examines the relationship between attention to online advertising and brand attitude, aided recall, and purchase intention. Results indicate that attention to an ad is affected by ad type (pictorial vs. text) and the interaction between ad location (left vs. right) and page (image‐oriented vs. textual), suggesting a range of factors that impact attention. Furthermore, under the online conditions of this study, attention is positively related to aided recall and to purchase intention, but negatively associated with brand attitude. Re‐sults are interpreted in the framework of dual attitude theory (Wilson, Lindsey, & Schooler, 2000 ) and other effects models. Although a clear “hierarchy of effects” appears to be elusive, the results suggest that marketers must fully evaluate advertising goals prior to creative development. © 2011 Wiley Periodicals, Inc.     

Consistency and commonality in advertising content: Helping or Hurting?

Scholars and practitioners widely argue that strong, successful brands are built on consistent and unique positioning, which should be reflected in the brands’ advertising. Surprisingly, however, little empirical evidence supports this claim, especially with regard to advertising content. The authors investigate whether and to what extent brands’ advertising content consistency—the similarity in the firm’s own advertising content over time—and commonality—the similarity between the firm’s and competitors’ advertising content—affect brands’ sales. Insights emerge from the analysis of the impact on sales of the content of 247 television ads aired by 33 brands in six consumer packaged goods categories over a four-year period. Results indicate that more than advertising spending, both consistency and commonality in advertising content affect sales, especially with respect to long-term cumulative sales. However, brands differ considerably regarding the direction of the effects. While small brands tend to benefit from increased consistency and commonality in advertising content, large brands tend to suffer from increased consistency. Thus, whether consistency and commonality in advertising content will help or hurt depends on the size of the brand.     

Thinking and Exploring： Road to ModemLogistics Development

Logistics came into being with manufacturing and circulation of products, and is developing with the improvemeut of market economy. Afterm any years‘ development, international logistics has formed its operation mechanism on the basis of market adjustment. With continuously increased     

What Drives Consumer Participation to Loyalty Programs?

Abstract

Little is known about the way in which different loyalty program attributes underlie consumers' intentions to participate in such a program. Based upon equity theory, the current study distinguished between consumer inputs (personal data release, participation cost, purchase frequency, participation exclusivity, and participation efforts) and outputs (program benefits, number of program providers, and program duration) as underlying attributes potentially affecting participation in a loyalty program. Using conjoint analysis, we explored how different levels within each of these eight attributes affect consumers' intentions to participate. The study holds major implications for the design of successful customer loyalty programs.     

Does retail type matter? Consumer responses to channel integration in omni-channel retailing

A critical issue faced by marketing practitioners today is orchestrating strategies that provide a smooth consumer experience in an omni-channel environment. The extant literature offers limited guidance on managing the consumer journey in an omni-channel environment across different retail types. Using the S–O-R framework as its basis, this study generates novel insights by examining how different types of retailers influence consumer perceptions of channel integration (CPCI) as well as consumer empowerment, trust, satisfaction, and patronage intention. Data from 736 consumers was collected using purposive sampling to target those who interact with retailers from high-end specialty stores, department stores, and hypermarkets. The data was then analysed using partial least squares structural equation modelling (PLS-SEM). We find that consumers from high-end specialty stores, hypermarkets, and department stores have different perceptions when patronising the omni-channel retail business. The implications of the study are discussed and suggestions for future research are presented.     

Do stock prices undervalue investments in advertising?

Under the efficient market hypothesis, the stock price incorporates the full value of a firm’s advertising. If so, advertising spending should not be associated with future abnormal stock returns. Nevertheless, from 1995 to 2015, advertising spending often leads to abnormal stock returns the following year. The strongest results surface for consumer goods and services where advertising used to build brand equity can carryover from one year to the next. No significant differences arise for healthcare, industrial goods, or retailer advertising. Healthcare and industrial goods advertising is often modest. Retailer advertising that builds traffic should have little if any carryover into the following year. These results may help marketing managers defend an advertising budget whose benefits carryover into the following year, but hurt current profits. Having more investment analysts on Wall Street with a marketing background should help reduce this overly conservative “wait and see” discount for carryover advertising.     

Ethical Responses to Public Allegations of Skin Tone Manipulation in Print Advertising: Consumer Indifference or Consumer Concern?

This study examines the effect of consumer prejudice on ethical responses to public allegations of skin tone manipulation in print advertising. A sample of 156 undergraduate business students read a fictitious news story in which an advertising watchdog group accused business executives of using digital manipulation to lighten the skin tone of a Black female model featured in a product print ad. Participants then answered questions on ethical perceptions, behavioral intentions, and prejudice toward Blacks. Results suggest that low-prejudice consumers have stronger ethical concerns toward the digital lightening of ethnic models in print ads than do high-prejudice consumers. The authors discuss the findings, limitations, and directions for future research.     

Thinking and Exploring: Road to Modern Logistics Development

Logistics came into being withmanufacturing and circulation ofproducts, and is developing withthe improvement of market economy. Aftermany years' development, internationallogistics has formed its operationmechanism on the basis of marketadjustment. With continuously increasedinvestment into the construction ofinfrastructure in communication,information, warehousing, package andcommodity supply, etc, the logistics networkhas expanded gradually, and circulationnetwork integrating urban-rural ar…     

Why are there cross-national differences in response to comparative advertising?: some mediators

This study conducted a lab experiment in the US and South Korea to test cross-national differences in response to comparative versus non-comparative Facebook advertising messages. Consistent with prior research, this study found that comparative ads resulted in more positive attitudinal responses among Americans, whereas non-comparative ads resulted in more positive attitudinal responses among Koreans. Results of multiple mediation tests showed that Americans showed more positive responses to a comparative ad message because the message was perceived to be more assertive than a non-comparative ad message, whereas Koreans showed more negative responses to a comparative ad message because the message was perceived to be less considerate than a comparative ad message. This study has important theoretical implications by testing multiple mediators for comparative ad effects; and also has practical implications for cultural adaptation marketing strategies.