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.     

The effectiveness of post-release movie advertising

Frequent new product introductions and short product life cycles lead to unusually high levels of advertising in the movie industry. We study the effectiveness of television advertisements aired after the theatrical opening of a motion picture (‘post-release advertising’). We estimate an instrumental variables, lagged effects model using a novel dataset constructed to obviate simultaneity concerns and temporal aggregation biases. We find that post-release movie advertising exhibits a high degree of heterogeneity across films, but generates substantial returns for some movies. Our findings suggest that studios may find it beneficial to experiment with higher post-release advertising budgets. Further, exhibitors may benefit from extended movie life cycles if they share post-release advertising responsibility with studios.     

Green Demarketing in Advertisements: Comparing “Buy Green” and “Buy Less” Appeals in Product and Institutional Advertising Contexts

This research compares consumer response to traditional green advertising appeals to that of less conventional, “green demarketing” (GD) appeals—messages by for-profit companies encouraging reduced category consumption for the sake of the environment. Rather than encouraging greener consumption, modern environmentalism calls for decreased consumption overall, a trend reflected in recent advertising campaigns (e.g., Patagonia's “Don't Buy This Jacket”). Despite its potential impact and unconventionality, research on GD in general is sparse, and no empirical research has examined consumer response to GD appeals relative to traditional green appeals. In three experiments, we find that, in the context of product advertising, consumers' attitudes for green ads are more favorable than those for GD ads, mediated by greater inferences of genuine environmental concern. However, we find the reverse pattern in the context of institutional ads. Further, an “anti-consumption amplifier” message embedded in the ad—espousing the potential harm of overconsumption—further boosts favorable consumer attitudes for the GD institutional ad relative to its traditional green counterpart. Importantly, we assess all effects while controlling for consumers' individual levels of green consumerism, such that implications may be applied more generally rather than to a specific segment of green consumers.     

The effect of media,product and message factors on ad persuasiveness: the role of affect and cognition

The effects of media, product and advertising strategy variables on consumers' thoughts and feelings are investigated. Both direct and indirect paths from the advertising variables to ad persuasiveness measures are also analysed with the indirect paths leading through affective and cognitive responses. Two hundred and forty television and magazine ads are analysed with respect to advertising variables, affect, cognition and ad persuasiveness. Results indicate that advertising variables are indirectly linked to ad persuasiveness with the indirect path occurring through affective and cognitive responses.     

Are They Celebrity Followers? Examining the Third-Person Perception of Celebrity-Endorsed Advertising

This study explored how consumers' presumed influences mediated the impacts of source credibility and advertising skepticism on purchase intention in the context of celebrity-endorsed advertising (CEA). A national media consumer panel (N = 445) indicated the third-person perception (TPP) were positively correlated to celebrity expertise and attractiveness, but negatively influenced by advertising skepticism. Moreover, three celebrity credibility variables and advertising skepticism yielded direct effects on purchase intention. Indirect effects by the TPP were also generated on purchase intention. The TPP would mediate the impacts of celebrity credibility and advertising skepticism on purchase intention in response to various desirable/undesirable endorsers. Moreover, the TPP would decrease the impact of celebrity credibility, but increase the impact of advertising skepticism on purchase intention, indicating that the third persons' attitudes toward CEA may become a key reference in consumers' purchase intention processes.     

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.     

Pricing and persuasive advertising in a differentiated market

This paper examines the effects of consumer preferences, firms’ costs, and advertising efficiencies on firms’ pricing and persuasive advertising strategies. We show that as the firms’ horizontal differentiation increases, the firm with a lower value-added product tends to increase persuasive advertising, whereas its competitor tends to reduce advertising. Second, the firm receiving a favorable shock in product valuation will complement the favorable change with additional persuasive advertising rather than reduce advertising spending. Third, an equal improvement in advertising efficiency in the industry will lower the profits for both firms, whereas a decrease in advertising efficiency in the industry can benefit both firms. Fourth, a larger shock that improves a firm’s product valuation or unit cost is more likely to induce higher advertising spending in the industry. Lastly, an exogenous increase in the separation between firms’ product valuations or perceived qualities may actually reduce the price dispersion in the industry.     

A Hong Kong view of offensive advertising

Considerable research has been conducted on offensive advertising in Western countries. However, not much is known about consumers' views of offensive advertising in an Asian context. This research, which was conducted in Hong Kong, aimed at identifying what product/service advertisements consumers find offensive, what executional styles consumers find offensive, consumers' tolerance of offensive advertisements in different media and the effects of offensive advertisements on consumers' purchase intentions. The results from a survey of 200 consumers showed that chat-line services and funeral services were considered the most offensive products or services to be advertised. When looking at the manner of advertising, sexist themes, indecent language and nudity were found to be the major reasons for the respondents finding advertisements offensive. In general, direct mail was considered to be a medium that prompts lower tolerance by consumers to potentially offensive advertisements while men and women's magazines were considered to be media that prompt higher tolerance to potentially offensive advertisements. Finally, it was found that levels of advertising offensiveness had an effect on purchase intentions.     

Winning Versus not Losing: Exploring the Effects of In-Game Advertising Outcome on its Effectiveness

Prior literary works on product placement in games predominantly focus on a host of game and brand characteristics to eventually explore their effects on consumers' psychological responses and behavior. One primary facet of in-game advertising (IGA) that has largely been ignored is game outcome in terms of winning and losing and its effect on consumers' nature of information processing. This article explores the effect of IGA outcome and performance feedback shown to players on their motivation expressed in terms of induced regulatory focus. Further, the effects of regulatory focus are examined on players' implicit and explicit memory, game and brand attitude, and emotions. A conceptual framework highlighting afore-mentioned relationships is developed and empirically tested which reveals that IGA outcome and performance feedback in the form of game messages plays a major role in explaining players' motivation which in turn also affects their memory and attitude. Managerial implications, limitations, and scope for future research are also discussed.     

How does ad relevance affect consumers' attitudes toward personalized advertisements and social media platforms? The role of information co-ownership,vulnerability, and privacy cynicism

Consumers' responses to the use of their personal data for personalized advertising by platform providers are paradoxical. Drawing from psychological ownership theory and the collective information boundary, this study examines how the social relevance and personal relevance of ads impact consumers' attitudes toward advertisements and social media platforms. Basing on 350 responses, we confirm that perceptions of information co-ownership and feelings of vulnerability play a serial mediating role in the positive relationship between ad relevance and consumer attitudes. Specifically, ad relevance increases consumers' perceptions of social media platforms as co-owners of their personal information, which in turn reduces feelings of vulnerability and improves their attitudes toward personalized advertisements and social media platforms. Privacy cynicism negatively moderates the indirect effects of information co-ownership perceptions on two attitude variables mediated through feelings of vulnerability. Our research findings provide a new perspective on the personalization–privacy paradox and offer platform providers new insights into improving their personalized advertising performance and user–platform relationships.     

How Consumer Ethnocentrism (CET), Ethnocentric Marketing,and Consumer Individualism Affect Ethnocentric Behavior in China

This study investigates how the value of consumer ethnocentrism (CET) and ethnocentric marketing affect consumers' purchase intentions for domestic and foreign brands in China. In predicting ethnocentric consumer behavior, past research has tended to focus on consumers' ethnocentric values rather than ethnocentric marketing stimuli. In addition, this study examines how the consumer value of individualism and collectivism (IC) affects ethnocentric choice behavior. An experimental study was conducted on 220 Chinese millennials, using fictitious advertisements. The study found that the CET value has moderate effects on consumer purchase intentions for foreign brands, while it strongly influences consumer purchases of domestic brands. In addition, the findings suggest that ethnocentric advertising may not encourage purchases of domestic brands, but can discourage foreign brand purchases. More significantly, individualistic consumers were found to show a greater preference for foreign brands and also their brand choices were less affected by the CET value and ethnocentric advertising.     

Contextual advertising in games: Impacts of game context on a player’s memory and evaluation of brands in video games

Contextual advertising is growing in digital marketing communication. Previous research on traditional media has shown that the surrounding context affects advertising effectiveness. Similarly, the context in a game may influence a player’s processing of brands advertised in that game. To examine the effects of contextual advertising in games, the present article affords two independent experiments investigating how positive and negative game contexts influence players’ memories and attitudes with respect to brands advertised via billboards in games. Drawing from literature on the limited capacity model, the authors demonstrate that positive and negative game contexts decrease brand memory since they require a high level of cognitive effort. The authors also find that varying a game context influence the perception of brands advertised in the game via the contextual priming mechanism and that positive contexts generate more positive brand attitudes than negative or neutral contexts. The findings have important implications for consumer researchers and marketers, as they indicate how contexts in games can be utilized to establish brand awareness and increase positive brand perceptions in contextual advertising using games.     

Television ad-skipping,consumption complementarities and the consumer demand for advertising

Endogenous consumption of advertising is common. Consumers choose to change channels to avoid TV ads, click away from paid online video ads, or discard direct mail without reading advertised details. As technological advances give firms improved abilities to target individual consumers through various media, it is becoming increasingly important for models to reflect the endogenous nature of ad consumption and to consider the implications that ad choice has for firms’ targeting strategies. With this motivation, we develop an empirical model of consumer demand for advertising in which demand for ads is jointly determined with demand for the advertised products. Building on Becker and Murphy (The Quarterly Journal of Economics, 108(4), 941–964 1993)’s ideas, the model treats advertising as a good over which consumers have utility and obtains demands as the outcome of a joint utility maximization problem. Leveraging new data that links household-level TV ad-viewing with product purchases, we provide empirical evidence that is consistent with the model: ad-skipping is found to be lower when a household has purchased more of the advertised brand, and purchases are higher when more ads have been watched recently, suggesting that advertising and product consumption are jointly determined. Fitting a structural model of joint demand to the data, we evaluate consumer welfare and advertiser profitability in advertising targeting counterfactuals motivated by an “addressable” future of TV. We find that targeting on the predicted ad-skip probability is an attractive strategy, as it indirectly selects consumers that value the product. Reflecting the positive view of advertising in the model, we also find that net consumer welfare may increase in several targeting scenarios. This occurs because under improved targeting, firms shift advertising to those who are likely to value it. At the same time, consumers that do not value the ads end up skipping them, mitigating possible welfare losses. Both forces are relevant to assessing advertising effects in a world with improved targeting and ad-skipping technology.     

Social Consumer Neuroscience: Neurophysiological Measures of Advertising Effectiveness in a Social Context

The application of neurophysiological methods to study the effects of advertising on consumer purchase behavior has seen an enormous growth in recent years. However, little is known about the role social settings have on shaping the human brain during the processing of advertising stimuli. To address this issue, we first review previous key findings of neuroscience research on advertising effectiveness. Next, we discuss traditional advertising research into the effects social context has on the way consumers experience advertising messages and explain why marketers, who aim to predict advertising effectiveness, should place participants in social settings, in addition to the traditional ways of studying consumer brain responses to advertising in social isolation. This article contributes to the literature by offering advertising researchers a series of research agendas on the key indicators of advertising effectiveness (attention, emotion, memory, and preference). It aims to improve understanding of the impact social context has on consumers' neurophysiological responses to advertising messages.     

Search,purchase, and satisfaction in a multiple-channel environment: How have mobile devices changed consumer behaviors?

The rapid adoption of smartphones and increasing reliance on the mobile Internet is influencing consumers’ shopping behavior with traditional Internet devices (e.g., desktop and laptop computers) and in stores. This research examines the effects of consumer perceptions of channels (i.e., mobile devices, computers, and offline stores) on their choices of search channels, purchase channel, and satisfaction level with the purchase channel. Using survey data from a sample of U.S. consumers, we find supplemental effects of mobile devices on computers do not alter the traditional substitution relationship between computers and stores during the search. The cross-channel effects indicate that perceived purchase benefits and costs of stores affect the purchase channel selection of mobile devices and computers, respectively. Satisfaction levels were highest when purchases were made on mobile devices. The insights from this study can help managers increase the effectiveness of advertising in different media and target distinct segments of consumers who rely on multiple channels for search and purchase.     

Value relevance of blog visibility

This study empirically examines the effect of a non-traditional information source, namely a firm's blog visibility on the capital market valuation of firms. After controlling for earnings, book value of equity and other value relevant variables, such as traditional media exposure, R&D spending, and advertising expense, we find a positive association between a firm's blog visibility and its capital market valuation. In addition, we find blog visibility Grange causes trading, not vice versa. Our findings indicate that non-traditional information sources such as blogs help disseminate information and influence consumers' investment decisions by capturing their attention.     

Branding in a global marketplace: The mediating effects of quality and self-identity brand signals

Research documents that consumers with a stronger belief in global citizenship through global brands (GCGB) view branded products as more important and prefer global to local brands. We test the mediating effects of consumer use of quality and self-identity brand signals on the relationships between GCGB and the importance attributed to branded products (Study 1: U.S. and Russia) as well as purchases of global brands (Study 2: U.S., U.K, and Russia). Our research establishes that consumer involvement with branded products and purchases of global brands revolves around consumers' use of brands as signals of quality and self-identity. In the developing country, results document mediation effects for the use of both quality and self-identity signals on the importance of branded products and global brand purchases. In developed countries, we find that the importance of branded products is explained by a greater use of brands as self-identity signals, whereas purchases of global brands are explained by a greater use of quality signals. Overall, consumers with a stronger belief in GCGB are more likely to use brands as symbolic signals and to express their identity through brands, and consumer use of global brands as quality signals provides a distinct competitive advantage to global brands in both developed and developing countries.     

Cross-cultural advertising communication: Visual imagery, brand familiarity, and brand recall

The focus of this paper is to address the issue of visual imagery in cross-cultural consumer research. The authors investigate the relationship between visual imagery, brand familiarity, and brand claim recall in two distinct cultural environments — the U.S. and Russia. The paper consists of two studies that explored imagery potency from the point of view of memory-evoking effects. The results suggest that image-intensive tools generate different returns depending on the level of brand familiarity and cultural media. The research findings may be of interest to marketing scholars studying cross-cultural consumer behavior as well as to practitioners operating in international advertising and global brand building.     

Consumer financial information processing: An integrated approach to examine individual differences

This study applied an integrated approach to construct a hierarchical framework for consumer financial information processing. Individual differences in customers' psychological, cognitive and motivational characteristics were examined as antecedents. Using data collected from a sample of 613 U.S. adults, this study used the structural equation modeling method to identify significant direct and indirect relationships amongst personality traits, financial self-efficacy, financial information-gathering ability, search motivation, financial information sufficiency and the utilization of heuristics and systematic financial information-processing modes. The results showed that consumers' information sufficiency (+) directly explained the application of the heuristic mode, whereas consumers' information gathering ability (+), motivation to search (+) and information sufficiency (+) directly explained the use of the systematic mode. Financial self-efficacy demonstrated positive indirect associations with both heuristic and systematic modes. The results also revealed that personality traits including agreeableness, emotional stability and extraversion indirectly explained the use of information-processing modes. Agreeableness (−) and emotional stability (+) were indirectly associated with both heuristic and systematic information processing modes, whilst extraversion (+) was only indirectly associated with the heuristic mode. Openness (+) was the only trait that was directly associated with the systematic mode. This study contributes to the literature on consumer financial information processing by connecting individuals' psychological, cognitive and motivational characteristics. The findings of this study provide valuable insights and policy and practical implications within the industry.     

An empirical analysis of national and local advertising effect on price elasticity

This paper investigates the interaction effect of advertising and price on the market share of a consumer nondurable product. We postulate a model in which local advertising is thought to primarily affect the consumers' purchase by making the demand more price sensitive, and national advertising to affect the consumers' preference, thus making the demand less price sensitive. Moreover, we hypothesize that local advertising interaction will have more immediate effect, while national advertising interaction will have longer term interaction effects. We apply these ideas empirically, and find support for our hypotheses. Thus, the interaction effect of advertising and price can be characterized by both increased and decreased price sensitivity, depending on the type of advertising. Moreover, these effects may be present simultaneously for the same product.