The influence of product involvement on consumers’ interactive processes in interactive television

Based on the classical elaboration likelihood model, we develop an interactive communication behavior model and apply it to the interactive television environment. The model suggests a hypothesis about interactive information searches and how they are impacted by product involvement and hypotheses about how the category of an advertised product impacts the type of information sought. Testing these hypotheses empirically, we verify that product involvement influences the extent of interactive communication behavior, while the type of information being sought is a function of the advertised product category. Implications regarding advertising practice and research are suggested.     

PP for ‘product placement’or ‘puzzled public’?

This research examines the effectiveness of the European ‘PP’ symbol, recently introduced as a warning of product placement in locally produced television programmes. The authors test whether this symbol counters the pervasive effect of product placement on purchase intention. Study 1 shows that the symbol does not prompt resistance to the influence of product placement. This is because the majority of consumers neither notice nor comprehend the symbol. In Study 2, two training methods are tested to increase the symbol’s effectiveness: (1) verbal label training and (2) a combination of verbal label training and information training. The addition of information training is necessary to increase the symbol’s noticeability, whereas verbal label training helps increase the symbol’s comprehensibility and effectiveness in activating persuasion knowledge and decreasing purchase intention. Finally, the results provide evidence that brand recall is crucial for resistance to product placement, suggesting the importance of brand recall as a moderator of resistance processes.     

Observing viewers’ self-reported and neurophysiological responses to message appeal in social media advertisements

PurposeMarketing research mainly uses self-reported method to record respondents' perceptions of creativity, and while self-reported method has its own merits, there exists some critique, particularly in terms of its ability to adequately capture the influence of message appeal on creativity. This paper studies how viewers’ responses to message appeals in social media advertisement compare in terms of self-reported responses versus responses taken through a neurophysiological method of Electroencephalograph (EEG).MethodologyTwo social media advertisements are displayed through a laboratory experiment to 17 subjects observing the subjects' neurophysiological reactions as well as their self-reported responses with regard to the commercials’ emotional, informational, and brand-related content.FindingsResults show that neurophysiological method offers unique details about emotional appeal, which the self-reported method fails to reflect. Furthermore, the neurophysiological measure identifies differences across the two target commercials in the emotional content part, which again are not identified through the self-reported method.OriginalityThis paper advances advertising research in social media literature by comparing content evaluation within advertisement through neurophysiological and self-reported measure. These findings have implications for marketers to use and measure message appeals in advertisement on social media to influence consumer response.     

Do low involved brands have better consumer perception due to product placement in emerging markets?

The purpose of this paper is to examine the role of the product placement in the film on purchase intention, attitude and change in perception. For this study, we selected recently released film and interviewed the film goers after he came out of the theatre through intercept technique. The products have improved brand recall, perception, and brand recommendation, ‘feeling’ towards brands, association and purchase intentions which are our dependent variables in our study. Brand image, country image, value for money and culture affects these dependent variables as per our present study. Low involved products get more mileage from product placement. The effect of product placement in low and high involved brand is explained for the first time through application alternative hierarchy’s theory of Ray et al., Theory of Hovland et al. and Gestalt theory of familiarity. Our paper bridges the gap between theory and practice by suggesting improvement in product placement in non –traditional media like film.     

Attributes of background music and consumers’ responses to TV commercials

This study extends and crystallizes the literature on the effect of background music in the TV advertising setting by focusing on differential effects of attributes of background music on consumers’ attitudes toward TV advertising based on their involvement. The familiarity of background music was more likely to influence attitudes towards advertisement, brand attitudes and purchase intentions in the low-involvement condition, whereas the product fit of background music was more likely to do so in the high-involvement condition. This indicates that effective attributes of background music can be varied according to consumer involvement.     

Consumers’ responses to native vs. banner advertising: moderation of persuasion knowledge on interaction effects of ad type and placement type

Applying advertising contextual theory, we examined the conditions under which native advertising embedded in a news website was more effective. With the use of college students (n = 189), a 2 (type of ad: native vs. banner) × 2 (type of ad placement: solo vs. duo) × 2 (persuasion knowledge: high vs. low) online experimental design was employed. In the solo condition, native advertising was evaluated more favorably than banner advertising in perceived fit, ad credibility, brand attitudes and click intention. Significant interaction effects between ad type and placement type were found on all dependent variables, with native advertising showing a significant decrease in duo (vs. solo) placement. These interaction effects appeared to be more pronounced for consumers with high persuasion knowledge, confirming its moderating role. Theoretical and managerial implications were discussed regarding the strategic placement of native advertising in news websites.     

Developmental antecedents to children’s responses to online advertising

Many critics have raised concerns about online advertising directed to children. This study investigated the role of several antecedent variables that may impact children’s attitudinal and behavioural responses to online advertising. Specifically, online ad scepticism, family communication patterns, time spent on the internet, and perceived internet competency were examined as factors that may impact children’s online advertising attitudes and behaviours. A survey conducted with a dyad sample of 381 parents-preteens in South Korea revealed that children with high scepticism towards online advertising, who spent less time using the internet and who perceived lower levels of confidence about their internet skills were more likely to have a negative attitude towards online advertising and less likely to disclose personal information to online marketers. However, the relationship between family communication and children’s responses to online advertising found in this study was inconsistent with the previous empirical findings. Implications of findings are discussed and directions for future research suggested.     

When open-mindedness lowers product evaluations: Influencers to consumers’ response to religious cues in advertising

Prior research has examined response to Christian religious cues used in secular marketing messages but has inadequately explored the underlying reasons for such response as well as why religious cues may negatively influence product evaluations. These limitations are addressed in this research work through three studies utilizing religious cues. In Studies 1a and 1b, ads with a Christian or Muslim religious cue (no religious cue) were found to produce lower (higher) product evaluations. Studies 2–3 then examined why religious cues in ads can produce lower product evaluations to show that open-mindedness moderated this effect (Study 2), and priming open-mindedness also influenced this effect (Study 3). Most interestingly, open-minded consumers were more negative toward religious cues in marketing communications than close-minded consumers, and priming open-mindedness magnified this effect. These novel effects are discussed in relation to the literature on open-mindedness and value-based consumption. Additionally, implications for research and practice are discussed.     

Corporate identity management and employees’ responses

Main goals in this study are to analyse the effects of corporate identity management (CIM) on the employees’ responses, and the moderating effects of two employee personality traits: proactive personality and resistance to change. Two hundred and ninety-three branch managers in the banking sector in Spain participated in the study, and their responses were analysed through structural equation modelling. Results show that organizational identification is a key variable to explain the CIM effects on employees’ responses. Moreover, employees’ proactive personality and resistance to change exert a moderating influence on the way identification leads to extra-role behaviours. Human resource practices should take into account that proactive employees are more prone to externalize their identification by spreading positive WOM. Besides, identification with the organization will lead to loyalty, especially in employees with low resistance to change.     

Make me special: Gender differences in consumers’ responses to loyalty programs

Current literature on loyalty programs emphasizes the importance of psychological rewards and special treatment. However, it is not clear if male and female customers respond to these incentives in a similar way. We explore the differential effect for female versus male consumers of two psychological rewards that are provided through a loyalty program (a) high status (e.g., Gold membership), and (b) personalization, at different levels of visibility to other consumers. Across three experiments and a field study, we find a coherent pattern of gender differences in the way customers respond to different types of psychological rewards in the context of loyalty programs. The results show that men respond more positively than women to loyalty programs that emphasize status, but only when their higher status is highly visible to others. In contrast, women respond more positively than men to loyalty programs that emphasize personalization, but only for personalization in private settings. We discuss managerial implications for the design of loyalty programs.     

Mitigating customers’ negative responses to physical presence reduction

Building on the social exchange theory and presumption of a firm's multi-channel strategy as a customer relationship management initiative, three experimental studies show that: (1) reducing physical presence negatively affects customers’ perceived relationship investment and trust and increases their switching intention; (2) to mitigate these negative effects, firms should engage in strategic decisions that benefit customers and are perceived as highly strategic. This research offers new insights suggesting that customers’ appraisals of firms’ strategic decisions influence their switching intention through the sequential operations of perceived relationship investment and trust. These findings are consistent for both services and retail contexts, highlighting the importance of firms engaging in strategies that are deemed to be unfavorable in the eyes of their customers to be perceived as highly committed to maintaining relationships with their customers.     

What determines firms’ intention to postpone product differentiation?

Abstract

In present-day Japan, more firms are beginning to apply postponed product differentiation in favor of providing mass-customized products. Mass customization can lead to competitive advantages in satisfying consumers’ individual needs. We propose a causal model to describe why and how Japanese distributors decide to postpone product differentiation and supply mass-customized products. The model was empirically tested by structural equation modeling with a dataset from Japanese automobile dealers, who have employed highly advanced mass customization systems and are world leaders in this practice. The results show that two environmental factors, uncertainty and innovation, affect firms’ expectations of their customers’ intentions to purchase mass-customized products and, in turn, firms’ decisions regarding postponing product differentiation in favor of mass customization. Mass customization has a high potential for growth in the future due to increasing levels of uncertainty and evolving forms of innovation.     

Trade liberalization in services: Investor responses to NAFTA’s cross-border trucking provisions

ABSTRACT

We investigate the response of US trucking firms to the removal of barriers to cross-border trucking under NAFTA. This was done via a program implemented in 2007, cancelled in 2009, and reinstated in 2011. We use a model of endogenous exporting to show that this can arise from incorrect expectations of import competition. We find that, unsurprisingly, the program’s start resulted in lower stock returns, particularly for border firms. However, later policy changes indicate that investors, and particularly those investing in US multinationals, viewed the pilot as beneficial.     

The impact of retailers’ sustainability and price on consumers’ responses in different cultural contexts

Consumers want sustainability, but at what price? With growing demands for environmental and social sustainability, retailers aim to understand how consumers might react to adaptations in retail practices. This research examines consumers’ perceptions towards retailers’ environmental and social sustainability practices and the moderating effect of price in different cultural contexts. Quantitative research methodology using scenario-based experiments was employed. Two experiments were conducted using research participants from the US (a more individualist country) and Turkey (a more collectivist country) and measured one dimension of culture, individualism versus collectivism. The results reveal that high prices negatively moderate consumers’ response to retailers’ sustainability efforts. Even though there is no significant interaction between either type of sustainability and price on purchase intention, high sustainability along with a low-price strategy leads to an increase in consumers’ commitment, satisfaction, and loyalty. Furthermore, the results demonstrate that high prices have a more negative effect on consumers’ responses in a collectivist country. This study highlights the importance of price in both individualist and collectivist cultures and provides a better understanding of a neglected dimension of sustainability, social sustainability. Managers need to be aware of the increasing demand from consumers for environmentally and socially sustainable practices but need to recognize that consumers may not be willing to pay more for these products. Companies need to formulate business strategies based on low priced-sustainable products and the cultural context of the country in which they operate.     

Design and Communication of Ecological Content on Sustainable Packaging in Young Consumers’ Opinions

Many companies today have noticed the growing sensitivity of consumers to social problems, reflected by their interest in environmental concerns (e.g., the use of sustainable packaging materials that are eco-friendly and safe for consumers and the environment). Producers seek, often based on intuition rather than knowledge, eco-arguments for their packaging to affect the perceptions of buyers and to influence their behavior. Creating an effective design and content for environmental messaging on sustainable packaging may be a significant element in building a competitive advantage for both product and brand. Therefore, the main objective of this article will be to answer the following questions: What content do consumers expect for ecological messages on packaging? Which attributes of sustainable packaging have a positive impact on consumer behavior? In what ways are consumers’ purchasing intentions based on sustainable packaging? To answer these questions, the results of research conducted among Polish and French students will be presented.     

Consumers’ online responses to the death of a celebrity

Humans have long been fascinated with celebrated persons. Because celebrities are usually protected, fans rely on celebrity-related products to connect to a beloved individual. As symbolic embodiments of celebrities, these related products often become cherished personal possessions. The death of a celebrity appears to strongly elevate a celebrity’s stature and increase the value of the celebrity’s products. This research examined marketplace effects of celebrity deaths using longitudinal data obtained from online auctions. Results indicated that a celebrity's death strongly boosts demand for surviving memorabilia. Marketers were also found to act with incredible speed in offering products to meet this heightened demand. These findings suggest that the effect of death on memorabilia sales varied by product type and death context.     

Impacts of product,store and retailer perceptions on consumers’ relationship to terroir store brand

This research shows that consumers’ relationship to terroir store brand, measured through attachment and two facets of brand loyalty (attitudinal and behavioral) is respectively influenced by their perceptions of the product, retailer and store. More specifically, the perceived authenticity of the products of the terroir store brand and its perceived value have a positive and significant influence on the attachment and behavioral loyalty of the regular buyers of this store brand and a positive and significant influence on the attachment of its occasional buyers. Trust in the retailer has a positive and significant impact on the behavioral loyalty of the regular buyers of this terroir store brand while perceived image of the store has only a positive and significant impact on the attitudinal loyalty of its occasional buyers.     

The influence of Islamic Work Ethic on employees’ responses to change in Kuwaiti Islamic banks

Significant attention has been paid recently to Islamic Work Ethic (IWE) particularly in organizational change literature. However, the nature of the relationship remains ambiguous. Research studies attempting to uncover IWE’s influence on characteristics of employees’ responses are still in its infancy. To tackle this gap, this study contributes to knowledge by developing a possible conceptual model identifying IWE’s influence on employees’ responses towards change in the shape of their commitment to change and organizational deviance. The testing of these relationships took place in the ever-developing Kuwaiti Islamic banking sector. Data was collected from 398 employees by distributing self-administered questionnaires. Outcomes revealed that the extent of IWE’s influence on employee commitment to change varied across different components. This result offers a unique understanding into IWE’s affiliation with employee attitudes to change, especially in the Islamic banking sector. Moreover, IWE was found to negatively influence employee engagement in organizational deviance. As such, this finding has not been established within the context of change previously. Due to such findings, several implications and future research directions emerge.     

Chinese children’s attitudes towards television advertising: truthfulness and liking

This benchmarking study examines Chinese children.s perceived truthfulness of and liking for television advertising in three Chinese cities with different developmental levels of advertising. An in-person survey of 1758 children (ages 6 to 14) was conducted between December 2001 and March 2002 using a structured questionnaire. Results indicate that a majority of children perceive half of the television commercials to be true, although this varies by grade and geography. Children in Beijing perceived television commercials to be more trustworthy than did children in Nanjing and Chengdu. The percentage of children who perceive all commercials to be true declines consistently with grade in all three cities. There is a high proportion of first graders who perceive all commercials to be untrue. The basis for judgement varies predominantly by grade. Children in higher grades depend more on brand and user experience while children in lower grades rely mainly on authority (i.e. parents or teachers). A high proportion of first graders hold both a strong liking and disliking for commercials. These strong feelings towards advertising decreased with grade, being replaced by a marked increase in neutral or indifferent feelings. Gender and level of television viewing do not show a consistent impact on perceived truthfulness and liking for commercials. Perceived truthfulness of television advertising is related positively with liking for commercials.