When does an ethical attribute matter for product evaluation? The role of warm-glow feelings for low-rated products

Research on the effects of ethical attributes has recently gained traction. However, limited research has addressed consumer response to ethical attributes in the current context where product ratings have become of primary importance to make decisions. Specifically, this study examines the relative effect of ethical attributes on product evaluations across different product ratings. Building on cue consistency theory and the negativity bias, we suggest that ethical attributes gain weight when consumers evaluate a low-rated product. This process leads consumers to anticipate more warm-glow feelings, generating better evaluations for such low-rated products featuring an ethical attribute (vs. another type of attribute). Two experiments provide consistent empirical support for this prediction, and demonstrate that, compared to other attributes or no attribute, an ethical attribute increases product evaluations to a larger extent when the product received low (vs. higher) ratings. We show that this effect occurs because of warm-glow feelings: when product ratings are low, consumers anticipate more warm-glow feelings from purchasing a product with an ethical attribute (vs. another type of attribute), leading to better product evaluations. These findings have direct managerial and ethical implications for practitioners.     

Consumer reaction to product recalls: factors influencing product judgement and behavioural intentions

In order to evaluate the factors influencing consumers’ responses to product recalls, two surveys were conducted among Brazilian automobile owners and two regression models tested. Results indicated that (i) product judgement was significantly affected by corporate social responsibility (CSR), blame attributed to the company and whether or not consumers had a car made by the brand considered; and (ii) behavioural intentions were significantly affected by CSR, consumers’ involvement with the message, perceived danger, product judgement and whether or not consumers had a car made by the brand considered. Findings revealed, however, that CSR is a better predictor of the product judgement than of the behavioural intentions, in accordance with recent studies indicating that CSR affects consumer judgements and behaviour differently. Finally, these two models are discussed and compared with previous research.     

Does poor fit always lead to negative evaluations? Extension advertising and perceived brand quality

This article investigates the moderating roles of advertising strategy (relational vs. elaborational) and perceived parent brand quality on the influence that parent brand–extension fit exerts on consumer evaluations of both extensions and the parent brand. Two studies manipulate fit in terms of either brand concept consistency or product feature similarity. Lower fit results in negative consumer responses, yet an elaborational advertising strategy mitigates the negative effects of lower fit on extension evaluations. This mitigating effect is stronger for high quality than for average quality brands. The results also indicate extension feedback effects for the parent brand, suggesting that elaborational advertising strategies may reduce the impact of fit on parent brand feedback effects. This latter link is not moderated by parent brand quality.     

Advertising strategies for brand image repair: The effectiveness of advertising alliances

Advertising alliances are an effective shortcut to increase brand awareness and improve brand image. However, few studies have compared the effectiveness of advertising alliances with traditional (single-brand) advertising. Thus, this study focuses on a specific type of brand beliefs – namely, brand personality – and compares the ability of advertising alliances and traditional advertising to strengthen positive traits and downplay negative traits for a real brand in need of image repair. The results show that the advertising alliance is considerably more effective in upgrading positive brand personality traits than single-brand advertising. Importantly, this superior effect remained one week after exposure. The choice of advertising strategy had no effect on negative brand personality traits. Implications for advertising management are discussed.     

How brand attribute typicality and consumer commitment moderate the influence of comparative advertising

This study examines how product attribute typicality and brand commitment influence the effects of comparative versus non-comparative ads on brand attitudes. Employing perspectives from the literatures on typicality and commitment, the study examines the effects of commitment to the comparison brand on the effectiveness of comparative versus non-comparative advertising. A between-informants experiment uses data from 466 student informants. It is hypothesized that (a) when the attribute under consideration is typical (atypical), among comparison brand committed informants, a non-comparative ad is more (no more) persuasive than a comparative ad, (b) when the attribute under consideration is typical, among comparison brand non-committed informants, a comparative ad is more persuasive than a non-comparative ad, and (c) when the attribute under consideration is atypical, among comparison brand non-committed informants, a comparative ad is likely to be more persuasive than a non-comparative ad, but the effect will be weaker than in the case of a typical attribute. Hypothesis (a) is supported while (b) has directional support. The results support a three-way interaction between consumer commitment, attribute typicality, and type of advertisement. The findings are relevant to a variety of contexts, such as markets characterized by high levels of market share and commitment for the market leader as well as fragmented markets where market share and commitment levels are low.     

Positive versus negative comparative advertising

Two studies examined cognitive responses to comparative advertising that was valenced, i.e., was either negative or positive. Negative comparative advertising featured the advertised brand derogating the comparison brand (I'm OK, you're not OK). Positive comparative advertising claimed superiority over the comparison brand in a nonderogatory manner (You're OK, I'm more OK). Subjects were exposed to either a negative comparative ad or a positive comparative ad. In study 1, the ad featured either a high or low share advertised brand and either a high or low share comparison brand while in study 2, the ad featured advertised and comparison brands with either a strong or a weak reputation. Across both studies, it was found that negative comparative advertising evoked significantly higher counterargumentation and lower claim acceptance than its positive counterpart. Also, when the advertised brand had a high share relative to the comparison brand, counterargumentation was lower and claim acceptance was higher vis-a-vis when the advertised brand had a low share relative to the comparison brand. Findings pertaining to brand reputation were mixed. Managerial and future research implications of the findings are discussed.     

The importance of advertising skepticism for brand extension appeals

According to existing research, ad persuasiveness decreases as advertising skepticism (i.e., the tendency to disbelieve advertising claims) increases. What remains unclear, however, is whether or not this effect extends to brand extension appeals. We suggest that the effect may vary according to brand extension similarity. Three studies test this assertion while providing process evidence and boundary conditions for the proposed effect. According to the findings, consumers automatically transfer associations from parent brands to highly similar extensions or automatically block these associations in the case of highly dissimilar extensions—reducing the impact of advertising skepticism on ad persuasiveness. At moderate levels, however, extension similarity is less predictive of the transfer process, increasing the negative effect of advertising skepticism on persuasion. Consistent with this account, the results identify brand transfer (i.e., the ability of the parent brand to make the extension) as the underlying mechanism explaining the advertising skepticism effect for moderately similar brand extension appeals. Furthermore, the results show how marketers can reduce these effects, and increase extension success, by emphasizing extension attributes that are shared with the parent brand. Collectively, these results provide a unique theoretical view, improving our understanding of advertising skepticism and the drivers of brand extension success.     

Associative and dissociative comparative advertising strategies in broadening brand positioning

When marketplace dynamics prompt a familiar brand to change its positioning, consumers often meet such attempts with resistance. This research demonstrates how familiar brands can incorporate new attribute information into the brand's position via comparative advertising in order to broaden the brand's marketplace positioning. Study 1 shows how the use and nature of comparative advertising affects the ability of a familiar brand to broaden its positioning. Studies 2a and 2b demonstrate that a comparative advertising strategy that incorporates a specific sequencing of dissociative and associative comparative advertisements best broadens brand positioning.     

The Power of Creative Advertising and Consumers’ Perceived Risk

Despite the growing importance of creative advertising as an effective marketing tool, little is known about the process through which it influences preexisting attitudes for familiar brands and factors that moderate its effectiveness. To fill this gap, A 2 advertising type (creative vs. normal) by 2 product category (high risk vs. low risk) experiment was conducted. Four creative ads and four normal ads were developed for some familiar brands and were exhibited for participants. Results indicate that creative ads significantly lead to more favorable ad credibility, ad attitude, brand attitude, and purchase intention than normal ads. Perceived product risk was found to moderate the effectiveness of creative ads.     

Parent-protecting advertising in product line extensions: Role of communication strategy,message type and extension type

Product line extension, the introduction of new products under the same brand name in a given product category, is a growing practice of product innovation in many industries. However, when companies launch line extensions, information of the new products positively or negatively affects consumer evaluations of the parent products in the same line, generating the so-called spillover effects. Through two experimental studies, the current research explores how marketers can employ appropriate communication strategies and message types in advertising to induce favourable spillovers or to avoid negative spillovers in product line extensions. Experiment 1 investigates the interaction between communication strategy and line extension type. Results reveal that for vertical high-end extensions and for horizontal line extensions, ads using relational strategy that focuses on the relatedness between products in the line increase consumer valuation of the parent product; for vertical low-end extensions, ads with elaboration strategy that stresses the uniqueness of the extensions avoid negative spillovers on parents. Experiment 2 further examines how message type moderates the spillover effects in elaboration ads. Results show that, compared with numerical messages, literal messages engender smaller valuation decreases on the parents and consequently alleviate undesirable spillover effects for most types of product line extensions.     

The Effects of Digital Media Advertising Content on Message Acceptance or Rejection: Brand Trust as a Moderating Factor

The goal of this study is: (1) to expand upon prior research into general online content, (2) to analyze the acceptance and rejection factors of Internet advertising messages, and (3) to examine the moderating role of brand trust in this process. The results show that, when displaying intentions relating to the acceptance of online advertising, brand trust is not a significant influencing variable. However, when studying the intent to reject a message, brand trust does act as a barrier against the negative effect of irritation, while when this trust does not exist, irritation exercises a significant negative effect on advertising value.     

It's no longer mine: the role of brand ownership and advertising in cross-border brand acquisitions

Although cross-border brand acquisitions are increasingly common in the global marketplace, research on how consumers respond to them is limited. Building on social identity and psychological ownership theories, we introduce the concept of brand ownership to the advertising literature, and show its negative effects on consumer reactions to a brand acquisition. Furthermore, we demonstrate that consumers’ disidentification (i.e., an oppositional motivation) with an acquiring country moderates the negative effect of consumers’ brand ownership on consumer attitudes after a brand acquisition. The results reveal that consumers with high levels of brand ownership develop more negative post-acquisition brand attitudes when a brand is acquired by a country with which consumers strongly disidentify (i.e. dissociative vs. out-group). Furthermore, our research introduces the concept of a brand ownership appeal in advertising, and demonstrates that it is an effective advertising strategy in enhancing post-acquisition brand attitudes for consumers with high levels of brand ownership. Important theoretical and managerial advertising implications conclude this research.     

How product aesthetics cues efficacy beliefs of product performance

Aesthetics of package design is an important consideration when consumers make purchase decisions. We argue that this is particularly the case for purchase decision of products in the beauty category. This paper advances current understanding of the role of packaging in product purchase behavior by identifying heuristic cues exhibited in packaging (i.e., that beautiful packaging is more effective at making the consumer more beautiful). Across a pilot field study and four lab studies, we demonstrate that package aesthetics informs inferences of how well the product can perform, which, in turn, drives purchase decisions. Importantly, we show that in the presence of a diagnostic cue such as a brand name, or an explicit promise (e.g. tagline of an advertisement), this effect is attenuated and rendered irrelevant. Further, we show that this effect is rendered ineffective to a category to which beauty is irrelevant. Hence, by signaling product efficacy, the beauty-in-a-bottle heuristic appears to inform purchase decisions.     

Contextual Priming Effects of Television Programs on Commercials: The Moderating Effects of Age

This study investigated whether age and its associated implicit memory deficits influences responses to contextual television advertising. Prior exposure to the advertised product or brand during a program should improve recall and brand attitude for contextual commercials. The results of a lab experiment, with participants ranging in age from 19 to 78, revealed that unbranded product appearances significantly improved recall, compared to normal unprimed commercials, but only for younger consumers. Branded product appearances did not significantly improve recall, compared to unbranded appearances. Contextual commercials had no positive effects on brand attitude. However, a competitor-brand appearance had a negative effect on brand attitude, for both older and younger consumers. Implications of these results, and their limitations, are discussed.     

Processing Advertising Information: Deception,Salience, and Inferential Belief Formation

Four recent FTC cases on deceptive advertising were used to examine Fishbein's concepts of attribute salience and inferential belief formation. The findings suggest that (1) attributes considered salient by the FTC may not be considered by consumers when making brand choices, (2) a truthful ad may lead subjects to form incorrect inferential beliefs about product attributes (therefore, such an ad may ultimately be deceptive), and (3) information contained in advertising is processed by subjects to discount exaggerated statements, thus reducing the credibility of the ad.     

What should we call this color? The influence of color-naming on consumers' attitude toward the product

Many companies use unique color names to differentiate products, attract consumer attention, and promote sales. This study categorizes the names of colors in detail, and uses schema incongruity and affect regulation theory to elucidate the effects of color names with different typicality and ambiguity. We identify the underlying mechanism and explore how color attribute importance and color name valence moderate the effects of the color name. The results of five studies show the following: (a) atypical-low ambiguity color names (vs. atypical-high ambiguity and typical color names) create a more favorable consumer attitude toward the product; (b) when color is the primary attribute of the product, typical color names are more effective; when color is a secondary attribute, atypical color names yield more favorable effects; (c) for positively-valenced color names, an atypical-low ambiguity naming method yields a better response, while for negatively-valenced color names, an atypical-high ambiguity naming method yields a more favorable response; and (d) the color-naming effects are mediated by perceived product uniqueness or playfulness, depending on different conditions.     

How sponsorship transparency mitigates negative effects of advertising recognition

The proliferation of covert online advertising formats such as advergames has raised concerns about consumers’ ability to recognize such content as advertising and about how recognition affects evaluative outcomes. The present research utilized an online experiment (N?=?179) to examine differences between covertness of advertising format (advergame vs. online video commercials) on advertising recognition, and whether sponsorship transparency mediates – and mitigates – the negative effects of advertising recognition on attitude toward the ad, attitude toward the brand, and purchase intent. The results show that covertness of advertising format, recognition, and sponsorship transparency all shape consumers’ responses to online ads. Specifically, the predicted negative indirect effect of covertness of advertising format on attitudes and behavioral intention via advertising recognition reversed valance when sponsorship transparency was included in the serial mediation model.     

The Moderating Effect of Product Category Knowledge and Attribute Importance on the Attraction Effect

This paper explores the moderating effect of product category knowledge and attribute importance on the attraction effect. The results of our study point to several boundary conditions of the effect. For consumers who have a moderate level of product category knowledge, and for consumers who assign more importance to one product attribute over the other, the attraction effect was strongest. In contrast, the attraction effect was diminished, in some cases to insignificant levels, for consumers with a high or low level of product category knowledge, and for consumers who consider both product attributes about equally important.     

The Trade-off Between Quantity and Quality of Information in Gender Responses to Advertising

Unlike females, males tend to process informational ads in a heuristic manner and form their judgments based on the mere number of product assertions presented in a message. Consistent with this prediction, there was a positive linear relationship between argument quantity and message persuasiveness for males, and it persisted even when brand attributes conveyed in an ad were relatively unimportant. Alternatively, females' responses exhibited an S-shaped relationship between argument quantity and advertising effectiveness, and were affected by the strength of message claims. The author argued that this pattern occurred because females engaged in more detailed yet selective processing of advertising information.     

“Sorry,the product you ordered is out of stock”: Effects of substitution policy in online grocery retailing

Postpurchase out-of-stock (PP-OOS) often happens in an online grocery context, where products appear to be available at the time a consumer places an order, but become OOS when the order is to be dispatched. This paper investigates two substitution policies that can mitigate negative responses: substitutions can match (i) on the dominant attribute and (ii) with a product from the consumers’ past purchase portfolio. According to data collected through two computer-simulated purchase experiments, involving more than 3,000 households and five product categories, matching the substitution on the dominant attribute increases acceptance, but this dominant attribute varies across category differentiation level (flavor for horizontal differentiated categories like cereals or crips vs. brand for vertical differentiated categories like margarine or ketchup). Category differentiation also informs acceptance of national brand or private-label flavor substitutes, such that, same-flavor private label is prefered more in horizontal differentiated categories. Matching on the basis of previous purchases has positive effects for both category differentiation levels, and when combining both policies, the previous purchase matching effect grows stronger for same flavor, rather than same brand, matching. These detailed insights establish several key managerial implications for substitution policies in online grocery contexts.