Does Television Viewership Play a Role in the Perception of Quality of Life?

Abstract

The authors hypothesized that television viewership influences materialism and dissatisfaction with standard of living, which in turn contributes to feelings of dissatisfaction with life. They collected data from five countries to examine the issue in a variety of cultural and media environments. The countries and types of samples were: United States (consumer panel and college students), Canada (urban households), Australia (urban households), Turkey (urban households), and China (urban households). The results were generally consistent with the hypotheses. However, most of the support came from the U.S. samples. Two possible explanations may account for the findings. One is that the effect of television viewership on life satisfaction is a unique phenomenon that is applicable only to the United States. Given the disparity of viewership levels between the U.S. and other countries, that explanation has some face validity. The other is that the effects were less evident in non-U.S. samples because of methodological limitations of the cross-cultural research. Overall, the results show that television viewership, at least in the U.S., may play a significant role in making people unhappy with their lives. Much of television advertising reinforces material consumption and possession with images of the “good life.” Thus, television advertising contributes to terminal materialism—materialism for the sake of materialism. Socially responsible advertising professionals should make a concerted effort to create messages that reflect instrumental materialism—materialism for the sake of meeting essential and basic needs.     

The Practicality of Super Bowl Advertising for New Products and Companies

Abstract

Companies that advertise during the Super Bowl can reach 40 million U.S. households with a 30-second commercial spot, but the cost can exceed $2 million. This research examines Nielsen television ratings and expenses for related commercial spots and suggests that the Super Bowl is not always the best site for introducing new companies or products to the marketplace. ANOVA test results indicate that younger companies may better affect purchase decisions by advertising more frequently during less expensive programming slots.     

Advertising and Word-of-Mouth Effects on Pre-launch Consumer Interest and Initial Sales of Experience Products

This study examines how consumers' interest in a new experience product develops as a result of advertising and word-of-mouth activities during the pre-launch period. The empirical settings are the U.S. motion picture and video game industries. The focal variables include weekly ad spend, blog volume, online search volume during pre-launch periods, opening-week sales, and product characteristics. We treat pre-launch search volume of keywords as a measure of pre-launch consumer interest in the related product. To identify probable persistent effects among the pre-launch time-series variables, we apply a vector autoregressive modeling approach. We find that blog postings have permanent, trend-setting effects on pre-launch consumer interest in a new product, while advertising has only temporary effects. In the U.S. motion picture industry, the four-week cumulative elasticity of pre-launch consumer interest is 0.187 to advertising and 0.635 to blog postings. In the U.S. video game industry, the elasticities are 0.093 and 1.306, respectively. We also find long-run co-evolution between blog and search volume, which suggests that consumers' interest in the upcoming product cannot grow without bounds for a given level of blog volume.     

Generating Goodwill with Direct Mail and Specialty Advertising

This study reports findings from the application of a specialty advertising and direct mail promotion to the problem of generating goodwill among potential customers in a business-to- business setting. Specifically, this study examines whether the use of direct mail alone or direct mail coupled with a specialty advertising gift can elicit differential goodwill responses from college and uni- versity professors, the target market for textbooks. A field experiment was conducted using four treatments: three direct mail treatmentsane with a sales letter alone. one with an inex- pensive gift, and one with a more expensive g i f t ' ~ h e fourth group, the control group, received no mailing but was subsequently con- tacted and asked to fill out a questionnaire using the Goodwill Scale. The results show that offering a specialty advertising gift to busi- ness prospects affected respondents' attitudes toward company sales representatives and general feelings about the publishing company. It was also shown that goodwill is related to whether customers will recommend the product to friends and whether they will remain loyal to that "brand" of textbook.     

Relaxed Credit Standards in the U.S. Housing Boom: Changes in Risk Characteristics of Mortgage Recipients*

This paper examines components of credit risk and how their ability to predict the interface between households and mortgage market changed under the relaxed lending standards prevailing during the U.S. housing boom of the 2000s. Using data from the Federal Reserve Board's 1998 and 2007 Survey of Consumer Finances, the paper evaluates changes between 1998 and 2007 in the significance of credit risk characteristics in explaining three variables regarding the purchase of a primary residence by households in low‐, moderate‐, and high‐income groups: the loan‐to‐value ratio of the purchase mortgage, the likelihood of purchase, and the price paid. The study also analyzes the extent to which the period saw increases in the values of those three variables. The findings strongly suggest a decline in the ability of credit risk characteristics in predicting the interface between households and mortgage market over the period.     

Pricing in marketing strategies of U.S.- and foreign-based companies

This study examines the role of pricing in marketing plans of U.S.- and foreign-based companies operating in the United States. Concurrently, two other issues, centrality of pricing decisions and pricing objectives, are examined. One objective of this study is to complement prior research, which has suggested the existence of managerial differences in other marketing and nonmarketing areas between U.S.- and foreign-based firms.The results, based on a mail survey and personal interviews, show that some differences exist between the U.S.- and foreign-based firms so far as the pricing element of their marketing plans is concerned. Pricing decisions are also shown to be more centrally made in the U.S.-based firms than in the foreign-based firms. Distribution of pricing objectives of the two types of firms, however, were not significantly different from one another. Group mean scores for pricing objectives, on the other hand, do suggest some fundamental differences.     

Stability of membership in market segments identified with a disaggregate consumption model

This paper examines the stability of membership in market segments formed from groups of households with consumption functions that indicate similar responsiveness to price, advertising, and habitual consumption rates. Four segments were identified for a particular brand of a frequently bought product: About 10% of the sample consume the brand at a steady rate; about 30% shift quantities consumed systematically over time; about 30% are very price sensitive; and the largest group of 35% are moderately price sensitive. The four segments do not have sharp demographic differences. Results indicate a high degree of instability in segment membership, with half of the households switching segments in two successive years. In a field experiment contaminated by heavy promotion, a sharp increase in advertising to an experimental group tended to inhibit household segments switching (particularly to more price-sensitive segments) relative to switching that occurred in a control group under more nearly normal advertising pressure.     

Should sequels differ from original movies in pre-launch advertising schedule? Lessons from consumers' online search activity

Sequels have become a profitable strategy in the U.S. motion picture industry because of their strong name recognition. However, while the established positioning of a sequel may help insulate it from competing firms' advertising messages, its familiarity may cause moviegoers to be more easily satiated with advertising from the sequel. Therefore, this study examines how sequels differ from original concept movies in terms of their ad effectiveness. We focus our analysis on pre-launch periods, given these periods' importance in shaping the financial outcomes of motion pictures. We consider the weekly online search volume of a movie as a measure of consumer interest in it, and thus as an intermediate response to pre-launch advertising. We then develop a model that assumes ad effectiveness can decline, due to copy and repetition wearout, and increase, due to forgetting, over time. We find that copy wearout is greater for original movies, while repetition wearout and forgetting are greater for sequels. These findings suggest that sequels should allocate more in early pre-launch periods and less immediately before release, relative to originals, to maximize pre-launch consumer interest.     

Marketing by CPAs

Abstract

Until the late 1970s, the AICPA discouraged commercial advertising and some other marketing tactics by practicing accountants. This study contacted 600 CPAs in the U.S. in an attempt to discover what kinds of marketing they employ, how useful they think it is, and how appropriate do they feel the AICPA's rules and regulations are in regard to marketing an individual CPA's services. Most thought the AICPA was fair. Accountants doing the most marketing tend to be younger males. “Conflict of Interest” was the area of most current concern in light of the ongoing problems of public accounting firms doing both auditing and consulting for the same client. “Newspaper” was the preferred advertising medium. Most of those surveyed were pleased the AICPA relaxed its restrictions on marketing and advertising, even though many CPAs still do not market their services to any great extent. This may change as younger accountants fill leadership positions in U.S. accounting firms.     

Testing the Cross-National Applicability of U.S. and Russian Advertising Belief and Attitude Measures

Abstract

Examining the cross-national applicability of advertising measures is becoming increasingly important, especially in rapidly changing countries such as Russia. Therefore, our study's purpose is first to demonstrate recommended procedures for testing the cross-national equivalence of advertising belief and attitude measures. Then, we conduct an initial cross-national comparison of beliefs and attitudes toward advertising in general between student samples from both the U.S. (n=148) and from Russia (n=64). Results indicate that, while Russian respondents felt advertising is more essential, U.S. respondents felt advertising resulted in greater negative social effects. Also, U.S. respondents were more favorable toward the institution of advertising (its purpose and effects), with no differences for the instrument of advertising (its methods and practices). Russian respondents' attitudes toward advertising in general were more favorable than those of U.S. respondents.     

Participation by U.S. Agencies in International Brand Advertising: An Empirical Study

Abstract

Marry ad agency executives have proclaimed the era of the global advertising agency. They observe that corporations are moving towards placement of their worldwide advertising through a single agency, and they predict that a few large “mega-agencies” will take over a majority of international advertising accounts. Yet, no published studies have examined how many brands are actually handled by the same ad agency worldwide. This paper presents the results of a survey examining the extent to which U.S. companies use the same agency to advertise abroad and in the home market. The study found that of the brands sold abroad, only about one-third are handled by the same agency both at home and abroad. This proportion does not vary significantly with advertising budgets, by product class, or between standardized and non-standardized brands. In addition, no single-agency group or “mega-agency” handles more than eight percent of the sample brands, and no agency handles a majority of its U.S. brands abroad.     

Evans,W. A. Advertising Today and Tomorrow. Great Britain: George Allen and Unwin, 1974

Abstract

This study reports on developments in the international advertising agency business during the 1970s. Findings suggest that U.S. agencies remain the dominant force in international advertising in contrast to the declining performance of U.S. industry in other sectors. Specifically, American agencies have found faster growth in their overseas markets leading to continually larger shares of their total billings; there has been a growing concentration in the international business of U.S. agencies and in the industry internationally; and, the international experience of U.S. agencies has led to a growing penetration of foreign markets, to growth in productivity, and to increasing domestic market power. Results of the study indicate however, that U.S. agencies may be facing increasing challenges from non-U.S. agencies in the future; notably from the West European, Japanese, and some developing countries.     

A Note on the Relationship between Firm Diversification and Corporate Advertising Expenditures

Using data on 200 major U.S. advertisers, our empirical analysis examines the relationship between the degree of firm diversification and corporate advertising expenditures, while controlling for competing explanations. Data on corporate advertising expenditures are obtained from Leading National Advertisers (1989). Compustat line of business data and Hoover's Handbook are used to construct measures of firm diversification, and other firm/industry characteristics included as covariates in our empirical analysis to account for possible alternative explanations. Our results suggest that less diversified firms spend more on corporate advertising.     

Advertising Spending Efficiency of Beauty-Care Product Companies: Comparison Between Local Companies and Multinational Companies in the U.S. Market

ABSTRACT

In this study, the authors apply data envelopment analysis (DEA) to evaluate the financial efficiency of U.S. beauty-care companies and foreign companies based on their media advertising expenditures in eight key media outlets (i.e., magazines, newspapers, outdoor, network TV, spot TV, syndication TV, cable TV, and radio) and their revenues in the U.S. market. The analyses revealed that 47.4% of the companies examined advertised efficiently. Companies that advertised inefficiently could save, on average, 75% of their advertising spending. The results also indicated that although U.S. companies are more efficient overall than are non-U.S. companies in terms of advertising spending, the competitiveness of non-U.S. companies should not be underestimated because some of them advertised efficiently (e.g., Kao Corporation from Japan) or almost efficiently.     

Consumer myths and the gay men and women who believe them: a qualitative look at movements and markets

Using focus group data from six different conversations in two U.S. cities, this study examines how advertising, corporate policies toward sexual minority employees, and sponsorship of events and charities central to the gay and lesbian community affect the perceived “gay‐friendly” status of brands and companies. This study also explores how gay and lesbian respondents understand their role as distinct consumers in relation to gay social movements. In contrast to cultural critiques that argue that constructions of gay consumer markets are antithetical to gay social movements, this study shows how actual gay and lesbian consumers not only understand this dialectic, but also use it as both self‐validation and as leverage in achieving social gains. © 2010 Wiley Periodicals, Inc.     

Social Psychological (Mis)Representations in Television Advertising

As a result of the FTC's more aggressive approach to regulating advertising, there has been a noticeable reduction in the amount of blatant lies in advertisements. More subtle forms of deceit are still a problem, however. This paper examines a special form of subtly deceptive advertising termed the social-psychological representation. A case is developed from available conceptual and empirical evidence to show how this apparently innocuous advertising method can deceive advertising receivers. Results are presented from a content analysis of television commercials which reveal that social-psychological representations are used extensively in national advertising.     

The Effects Of Information Sources On Consumer Reactions To Direct-to-Consumer (DTC) Prescription Drug Advertising: A Consumer Socialization Approach

This study examines the process by which, and the extent to which, consumers' reliance on mass media and interpersonal channels for health information is associated with consumer responses to direct-to-consumer (DTC) advertising. By analyzing nationally representative survey data collected among a U.S. adult population, this study finds that those who rely more on mass media and interpersonal channels for health information form more positive attitudes toward DTC advertising. In addition, reliance on interpersonal channels for health information leads consumers to have more active discussions with their health professionals about the drug advertised. Implications for pharmaceutical marketing practitioners and DTC advertising researchers are discussed with reference to the heated debate surrounding DTC advertising in the wake of the recent Vioxx recall incident.     

New Product Development. Gruenwald,George. Chicago: Crain Books, 1985, 414 Pp. $34.95

A core value throughout much of American history, frugality received official sanction during World War II when the U.S. government, to mobilize the home front, launched poster campaigns that preached being thrifty with goods and services, recycling metals and other materials, growing and storing food at home, obeying price and ration controls, and buying war bonds. This paper examines the consumption context, implementation, creative execution, and impact of government-sponsored poster advertising during this important turning point in the history of American consumer culture. The final section considers the significance of these campaigns in consumption and poster history, as well as some implications for reinspiring frugal values and behaviors.     

Consumer Response to Advertising Endorsers' Sexual Information: Western Individualism vs. Eastern Confucian Conservatism

Focusing on the cultural differences between the United States and South Korea, this study examines the moderating effects of advertising endorsers' gender (male vs. female) and intimate sexual information (i.e., premarital sexual behavior) on consumer responses to advertising. The results demonstrate that intimate sexual information of advertising endorsers was negatively perceived among Korean consumers but not among U.S. consumers. In addition, Korean consumers evaluated intimate sexual information of female endorsers more negatively than that of male endorsers, suggesting gender-biased processing. These findings provide several theoretical and practical implications.     

Carryover effects of advertising on sales of durable goods

In a landmark paper, Clarke [Clarke, D.G., J. Marketing Res. 13 (November 1976): 345–357] addressed the question of how long the carryover effect of advertising on sales persists. Appropriate cautions are included in the conclusions reached by Clarke since the preponderance of studies that he reviewed involved mature frequently purchased low-priced products. His conclusion is that, for such products, the carryover effect of advertising lasts a matter of months rather than years. The current study examines durable goods and provides preliminary evidence that for some durables, advertising effects may have a duration interval that exceeds a year.