Persuasion knowledge and consumer reactions to pricing tactics

The current research investigates consumer knowledge of the pricing tactics that marketers frequently employ and the effects of that knowledge on responses to various price offers. In the research, a series of studies were conducted to develop and validate a knowledge measure designed to assess pricing tactic persuasion knowledge (PTPK). Consistent with the persuasion knowledge model, individuals with higher levels of PTPK were shown to have more knowledge-related thoughts regarding pricing tactic information than those with low levels of PTPK. Additionally, pricing tactic persuasion knowledge was shown to be more predictive of consumer choices regarding quantity surcharge offers and purchase interest evaluations following exposure to tensile claim offers (e.g., “Save up to 50 percent Off”) than several competing constructs.     

Priming skepticism: Unintended consequences of one-sided persuasion knowledge access

Scholars have historically assumed that consumers' persuasion knowledge is invariably linked to skepticism about advertising and marketing. As a result, studies have often used skepticism-focused stimuli to prompt persuasion knowledge access. However, as originally conceptualized, persuasion knowledge also includes an understanding of persuasion tactics that are trusted and believed, which suggests that accessing persuasion knowledge does not necessarily make consumers more skeptical. In this paper, we propose that, for at least some persuasion knowledge research questions, skepticism-focused interventions may be too “one-sided” because they bias participants to consider only the skeptical side of persuasion knowledge. The purpose of the present research is to test whether the “one-sided” persuasion knowledge interventions that are used in persuasion knowledge research encourage skepticism more than balanced interventions that focus consumers on the negative and positive motives that may underlie persuasive communication. Across three experiments with three distinct subject pools and over 2,500 participants, we demonstrate that one-sided versus balanced manipulations of persuasion knowledge can have differential effects on consumer skepticism. This is an important finding because skepticism-focused operationalizations are frequently employed in persuasion knowledge research.     

Reduce Content or Raise Price? The Impact of Persuasion Knowledge and Unit Price Increase Tactics on Retailer and Product Brand Attitudes

This research investigates consumer reactions to the practice of increasing unit prices of products by either reducing product content or increasing total prices. Using pricing tactic persuasion knowledge (PTPK) as a lens for understanding, I predict that total price increases garner less favorable attitudes toward retailers for relatively low PTPK consumers, while content reductions garner less favorable attitudes toward product brands for relatively high PTPK consumers. The results of an experiment with a nationally representative sample of U.S. consumers support these asymmetric predictions about PTPK consumer segments as well as expectations about the underlying psychological processes.     

Deceptive advertising and third-person perception: The interplay of generalized and specific suspicion

The present research examines the extent to which consumers perceive deceptive advertising claims as effective (i.e., affect one's purchase decision) for themselves and others. Results in two experiments suggest that consumers tend to consider an advertising claim more effective for others than for themselves, when they realize the claim is highly deceptive. In contrast, when perceived deceptiveness is moderate or low, the self–others difference is moderated by consumer dispositional difference in skepticism toward advertising. The effect appears to be driven by the interplay of generalized and specific suspicion, which has a stronger impact on consumer judgment about the effect of deceptive advertising on the self than on others.     

Exploring how consumers cope with online behavioral advertising

This study explores how consumers cope with a computer technology-driven persuasion tactic called online behavioral advertising (OBA). By tracking consumers’ online behaviors, OBA delivers highly tailored advertising messages to individual consumers, giving rise to serious privacy concerns due to their covert nature. Integrating the persuasion knowledge model and the protection motivation theory, we employed a survey method (N = 442) to examine how consumers cope with OBA based on their persuasion knowledge, cognitive appraisal, and cognitive processing variables. The results reveal that persuasion knowledge was indirectly associated with coping behavior of ad avoidance throughout cognitive appraisal process (perceived risks; perceived benefits; self-efficacy). Privacy concerns partially mediated such associations with ad avoidance. Interestingly, cognitive processing variables (reactance; perceived personalization) were significantly associated with ad avoidance without being related to persuasion knowledge. The implications for theoretical, managerial, and social contributions are discussed.     

The vulnerability of defensiveness: The impact of persuasion attempts and processing motivations on trust

People are generally defense motivated during interactions with salesclerks. In this research, we demonstrate that defense motivation can make consumers vulnerable to a less stereotypical persuasion attempt as compared to a more stereotypical one. The consequence is that consumers are willing to pay a higher price and exhibit greater trust in a salesclerk who uses a less stereotypical persuasion attempt. Thus, the stereotypicality of a persuasion attempt is identified as one key factor that impacts perceptions of trustworthiness. In addition, we show that accuracy motivations can attenuate the positive effect of a less stereotypical persuasion attempt. In other words, accuracy motivations can protect consumers from being susceptible to less stereotypical persuasion attempts.     

Scarcity Appeals in Advertising: The Moderating Role of Expectation of Scarcity

Advertisers often use scarcity appeals to influence consumers, with announcements such as “hurry, limited quantities,” and “limit: two per customer.” Based on a persuasion knowledge framework, we show in three studies that the effect of scarcity appeals on product evaluation is moderated by consumers' expectation of scarcity, such that scarcity appeals have a positive effect when expectation of scarcity is high but not when it is low. We also show that this interaction effect holds for expectation of scarcity due to demand as well as supply, and that cognitive load constitutes a boundary condition for this effect. These findings contribute to the literature by identifying expectation of scarcity as a moderator, persuasion knowledge as a mechanism, and cognitive load as a boundary condition for the effect of scarcity appeals on product evaluation. From a managerial perspective, this research indicates that scarcity appeals are more effective when consumers have high compared to low expectations of scarcity; that activation of persuasion knowledge can eliminate the positive effect of scarcity appeals; and that cognitive load can reinstate the positive effect of scarcity appeals on product evaluation.     

Using virtual reality to increase charitable donations

Marketer interest in using virtual reality (VR) as a persuasion tactic continues to rise. Notably, one sector at the forefront of utilizing this tactic for persuasive means is nonprofit marketing. Many charities have devoted considerable resources to creating VR appeals under the assumption that this medium will increase donations over and above present tactics. However, research has not yet examined the persuasive consequences VR may provide over more traditional channels. This research seeks to understand the opportunities and limitations this emerging tactic can offer marketers. Specifically, we examine the donation effectiveness of three real VR charitable appeals by assessing actual donation behaviors, and find that VR appeals increase donations compared to a two-dimensional (2D) format. This work addresses a timely and relevant issue for practitioners and opens doors to future research investigating VR’s applications to marketing.

     

Local or Global Image? The Role of Consumers' Local–Global Identity in Code-Switched Ad Effectiveness Among Monolinguals

Local and global brands alike have increasingly used code-switching to enhance advertising persuasion. Although this tactic is widely used, previous studies have focused on bilinguals but not monolinguals. Because of the emerging use of code-switching in advertisements in monolingual markets, more research efforts are required to understand its effectiveness and boundaries among monolinguals. This study investigated whether the consumers' local–global identity plays a moderating role in the effectiveness of code-switched advertisements among monolinguals. The consumers' local–global identity refers to the combination of local and global identities possessed by individuals that affect how they define themselves in relation to the social environment. Study 1 (manipulating consumers' local–global identity) demonstrated that the local–global identity moderated the effect of code-switched advertisements. The results indicated that the congruence between code-switching and the consumers' local–global identity enhanced persuasiveness, and that advertising involvement mediated this effect. Study 2 replicated the findings of Study 1 by using a local–global identity measure. These findings provide implications for branding and advertising strategies.     

Effects of functional green advertising on self and others

This study examines the effects of a functional green advertising promoting the environmental advantages of a product. It presents the results of three experiments designed to (a) explore consumers’ perceptions of a functional green ad's effects on themselves and others, (b) determine how those perceptions are influenced by consumer environmental concern, and (c) examine how individualism–collectivism relates to self–other effect perceptions. Findings indicate that (a) consumers believe that functional green advertising exerts a stronger influence on others’ purchase decisions than on their own purchase decisions; (b) the self–other difference is more salient among consumers with high environmental concern; (c) in the individualistic culture, the perceived effectiveness on self, not on others, predicts consumers’ support for the regulation of functional green ads, while this effect is reversed when consumers are in collectivistic cultures. The study's findings extend several lines of research, including the literature on green advertising and the third‐person effect.     

Sensitivity to Ulterior Motives in Retail Settings: The Moderating Role of Dual-Identity versus Sole-Identity Consumers

The current research compares sole-identity versus dualidentity consumers in their responses to different retail persuasion attempts that occur in situations with low versus high ulterior motives. We examine different consumer responses (e.g., interaction time, perceived friendliness, future interaction intentions, and actual purchase behavior). We find that dual-identity consumers (those individuals with sales experience who have both a consumer and agent identity available) tend to automatically activate their agent identity which makes them more likely to take the perspective of the sales agent as compared to sole-identity consumers (individuals without sales experience who only have a consumer identity available). Dual-identity consumers show greater sensitivity to ulterior motives as exhibited by more accurate responses when persuasion cues suggest that ulterior motives are low, but not high. In contrast, sole-identity consumers are insensitive to differing levels of ulterior motives. The current research further demonstrates that perspective-taking can mitigate sole-identity consumers' defensive reactions which can increase their responses to sales agents' persuasion attempts with low ulterior motives.     

Currency Substitution and Price Endings: Right Digit Effect

ABSTRACT

The strategic manipulation of prices. rightmost digits has been a tactic used by retailers in the western world for decades. By studying the internationalization of pricing tactics in a global economy, our research adds a much needed contribution to the literature of price endings and pricing tactics in global markets. We find that at lower price levels, consumers exposed to a 99 ending price in a currency substitution market are more likely to purchase the product compared to consumers in the US market. At higher price levels, on the other hand, consumers in either market situation exhibit no change in purchase intentions. Thus, the 99 ending tactic has no effect on consumers when the product is expensive. The use of the right digit effect by managers in a currency substitution/ dollarized economy as a way of persuading consumers to buy is still likely to be more successful compared to the USA market. As such, firms in a dollarized economy should structure their pricing strategies while taking into consideration the type of product they are offering and the consumer market they are dealing with.     

The Relationship of Persuasion Knowledge,Identification of Commercial Intent and Persuasion Outcomes in Advergames—the Role of Media Context and Presence

Across two studies, the authors investigate the extent to which children’s persuasion knowledge of an advertising tactic (advergame and TV commercial) and their level of engagement with the medium (presence) influence their identification of commercial content and persuasion outcomes. In line with theoretical predictions of the persuasion knowledge model, results showed that those children who had more knowledge about advertisers’ tactics were more likely to identify brands and commercial content in the advergame and less likely to be influenced. However, a high level of presence in the medium moderated the effect of persuasion knowledge on persuasion outcomes.     

Differential Effects of Value Consciousness and Coupon Proneness on Consumers’ Persuasion Knowledge of Pricing Tactics

Pricing tactics persuasion knowledge (PTPK) is a relatively new concept that seeks to extend the research on persuasion knowledge to the pricing domain. Pricing tactics persuasion knowledge refers to the persuasion knowledge of consumers about marketers’ pricing tactics. Employing an acquisition–transaction utility theoretic perspective, this study examines the differential effects of value consciousness and coupon proneness on the accuracy, confidence, and calibration of consumers’ pricing tactics persuasion knowledge. The study finds that coupon proneness is negatively related to accuracy, confidence, and calibration of PTPK, while value consciousness is positively related to accuracy, confidence, and calibration of PTPK. The implications of the study are outlined.     

Use of persuasive techniques on Internet shopping sites

Huge strides in technological development combined with marketing strategies have led to dramatic changes in the way information is transmitted and communicated to the consumers, and subsequently used by the consumers. Information has become a dominant factor in determining why, where, what, and how consumers shop, process information, and make decisions. While marketing information has always been an important factor in consumer decision‐making, its provision on demand and added convenience via the Internet has created a need to research the nature and amount of information that these technologies provide. Advertisements use different forms of persuasion to gain consumer attention, meet their economic and emotional shopping needs, to create a positive image of the product, brand, and the shopping medium, and influence consumers to purchase the product. Persuasion may be classified as functional congruity and self‐congruity routes to persuasion (Johar & Sirgy, 1991). Fifty websites were studied for utilitarian and value‐expressive forms of persuasion by product differentiation. The websites were classified as those selling tangible products only and those selling intangible products only, and those selling both tangible and intangible products. The paper will present results of the study along with a discussion and conclusion with implications on consumer well‐being.     

How source cues impact consumer evaluations of direct and indirect persuasion attempts

This research demonstrates how the directness of a persuasion attempt by a sales agent, in this case flattery, changes how source cues influence consumers’ evaluation of the shopping experience. When the persuasion attempt is direct, source cues do not influence consumer evaluations. However, when an indirect persuasion attempt is used, it is only effective when positive source cues are present. In particular, when the persuasion attempt is indirect, evaluations are more effective when the sales agent is attractive to or shares similar opinions with the consumer. Copyright © 2013 ASAC. Published by John Wiley & Sons, Ltd.     

Attention to social comparison information and brand avoidance behaviors

This research links brand avoidance behaviors to attention to social comparison information (ATSCI). We posit that high (vs low) ATSCI consumers will suffer from more social-evaluative uncertainty, i.e., more uncertainty regarding others’ reactions to their brand choices. To alleviate this problem, high ATSCI consumers will avoid distinctive or conspicuous brands and brand icons that might draw the attention of others, playing safe in their brand choices, rather than risking social disapproval. Two preliminary studies provide support for the theoretical assumptions, confirming that ATSCI is positively associated with brand consciousness, brand social-evaluative uncertainty, and brand avoidance motivated by social-evaluative concerns. Study 1 examines brand identification and shows that although high and low ATSCI consumers identify themselves with equally prestigious brands, the former avoid identifying with distinctive brands. Study 2 demonstrates that unlike their low ATSCI counterparts, high ATSCI consumers avoid conspicuous brand logos even in the case of highly prestigious brands.     

The interplay between consumer self-view,cognitive style,and creative visual metaphors in print advertising

This paper examines the use of an advertising rhetoric technique – visual metaphor, and its persuasion effects in light of consumers’ cultural and individual dispositional characteristics when processing visually relational information. Of particular interest are the culturally driven self-views and individuals’ cognitive thinking styles. An experimental study involving visual metaphor manipulations in the context of print advertising was conducted. Results showed that, visual metaphor techniques significantly enhanced the persuasion outcomes through consumers’ evaluation of the advertising message and the brand. Both consumers’ self-construal orientation and their analytic-holistic processing style, moderate the effects of visual metaphors in print ads for low-involvement products, but not for high-involvement products. Implications for academics and practitioners, as well as future research directions suggested through the current experiment, are discussed.     

‘We’ are more likely to endorse than ‘I’: the effects of self-construal and brand symbolism on consumers’ online brand endorsements

Recent research increasingly highlights that consumers engage in online brand endorsements (e.g. Facebook likes) to signal their identity, but has failed to explain why different consumers use this type of signaling to differing degrees. This paper addresses this gap by looking at a culturally constructed individual difference variable, namely self-construal. Self-construal, which can be independent or interdependent, refers to the extent that people define themselves in terms of the relations they have with others. In four studies, this research shows that consumers’ self-construal is related to their intention to endorse brands online. In particular, high levels of interdependent self-construal positively affect consumers’ intention to endorse brands online (Studies 1A & 1B). This effect is mediated by an increased perception of brands’ symbolic value (Study 2). Moreover, this positivity bias toward symbolic brand cues is conditional upon consumers’ brand attitude (Study 3). These findings demonstrate that consumers’ identity plays a central role in their brand perception and brand-related social media use.     

When transparency pays off: Enticing sceptical consumers with two-sided advertising

It has been generally assumed that higher levels of scepticism towards advertising invariably lead to higher resistance to advertising appeals. The main purpose of the present research was to examine whether highly sceptical consumers' resistance can be overcome by appeals associated with higher credibility. We tested our hypotheses using message sidedness as an advertising variable that has been associated with higher (two-sided) versus lower (one-sided) credibility. In three experimental studies, we examined more versus less sceptical consumers' responses to two- versus one-sided appeals. We found that two-sided messages are more effective in increasing purchase intentions, through enhanced credibility, but only for consumers who are more sceptical of advertising. Less sceptical consumers trust both messages equally and their purchase intentions are not affected by the type of message. Importantly, we also showed that highly sceptical consumers trust two-sided appeals as much as their less sceptical counterparts. The study contributes to the literature on advertising and persuasion knowledge by showing that advertising scepticism does not elicit a single response tendency, as originally conceptualized. Rather, advertising scepticism is more consistent with the underpinnings of the Persuasion Knowledge Model, in that higher knowledge about persuasion tactics aids consumers to better cope with, and not invariably resist persuasion attempts. We conclude that transparency pays off because it may entice a more sceptical audience and, at the same time, it does not harm less sceptical consumers' trust and purchase intentions.