Do new forms of television advertising occasion better recall than traditional advertising spots?

The loss of effectiveness of television advertising centred on advertising spots has caused the development, and subsequent consolidation, of new forms of advertising within this medium. While management assumes that these new forms of advertising generate greater recall, in order to justify their usage, there is a noticeable lack of research evidence to prove this supposition. Therefore, in this article we use a representative sample of Spanish television audiences to compare the advertising recall that advertising spots generate, as opposed to that occasioned by a combination of new television advertising formats. The empirical analysis was carried out by means of an Ordered Probit model, which showed that the new forms of advertising gave rise to better recall than advertising spots, as much with regard to aided as with unaided recall.     

And now a word from our sponsor: Do consumers perceive advertising on traditional television and online streaming video differently?

Despite the increasing popularity of online streaming television (OTV), there is little information regarding how perceptions of the new medium differ from traditional television (TV) viewership. The research employed online interviews among young adult viewers of OTV and traditional TV to determine whether young adult consumers (aged 18–34) regard advertising viewed within online TV programming differently than they regard advertising viewed within traditional TV programming. While advertising has long been accepted by American consumers as a necessary element of most mass communication, this research suggests that viewers of OTV programming do not regard advertising as a means to subsidize the cost of online content. Rather, young adults appear to regard advertising as an intruder in the OTV environment. Furthermore, the results indicate that Ducoffe's Advertising Value model (1995) does not predict attentiveness to advertising viewed within the OTV context. Therefore, while OTV advertising may be held to a higher creative standard than traditional TV advertising, there is no indication that entertainment value contributes to an improved attitude toward advertising in the OTV environment.     

Consistency and commonality in advertising content: Helping or Hurting?

Scholars and practitioners widely argue that strong, successful brands are built on consistent and unique positioning, which should be reflected in the brands’ advertising. Surprisingly, however, little empirical evidence supports this claim, especially with regard to advertising content. The authors investigate whether and to what extent brands’ advertising content consistency—the similarity in the firm’s own advertising content over time—and commonality—the similarity between the firm’s and competitors’ advertising content—affect brands’ sales. Insights emerge from the analysis of the impact on sales of the content of 247 television ads aired by 33 brands in six consumer packaged goods categories over a four-year period. Results indicate that more than advertising spending, both consistency and commonality in advertising content affect sales, especially with respect to long-term cumulative sales. However, brands differ considerably regarding the direction of the effects. While small brands tend to benefit from increased consistency and commonality in advertising content, large brands tend to suffer from increased consistency. Thus, whether consistency and commonality in advertising content will help or hurt depends on the size of the brand.     

Do stock prices undervalue investments in advertising?

Under the efficient market hypothesis, the stock price incorporates the full value of a firm’s advertising. If so, advertising spending should not be associated with future abnormal stock returns. Nevertheless, from 1995 to 2015, advertising spending often leads to abnormal stock returns the following year. The strongest results surface for consumer goods and services where advertising used to build brand equity can carryover from one year to the next. No significant differences arise for healthcare, industrial goods, or retailer advertising. Healthcare and industrial goods advertising is often modest. Retailer advertising that builds traffic should have little if any carryover into the following year. These results may help marketing managers defend an advertising budget whose benefits carryover into the following year, but hurt current profits. Having more investment analysts on Wall Street with a marketing background should help reduce this overly conservative “wait and see” discount for carryover advertising.     

Idealized images of the male body in advertising: a reader‐response exploration

This study used an interpretative methodology for exploring men's reactions to the representation of male bodies in advertising, particularly when men are portrayed in a sexual or naked pose and complemented past studies by investigating whether or not men felt that they were being objectified or exploited in advertising in the same manner as critical and feminist literature has suggested in relation to women. The extent to which men felt that the representation of idealized male images in advertising had an adverse effect on their self‐image and self‐esteem is discussed. Emergent interpretive themes include homophobia, gender stereotyping and the legitimization of the exploitation and use of sexuality in marketing. The implication for brands is explored.     

Do feminists still respond negatively to female nudity in advertising? Investigating the influence of feminist attitudes on reactions to sexual appeals

To test the belief that feminism and sexualization of women in advertising stand in opposition, this study employed a large US national sample (N = 1298) to examine how consumers’ feminist attitudes differentiate and predict their ethical judgment and ad-related evaluations of sexual images of women in advertisements. The results indicate that (1) consumers with higher feminist attitudes evaluated sexual ads more favorably than those having lower feminist attitudes, and (2) consumers’ feminist attitudes positively predict ad-related evaluations with full mediation of ethical judgment. These findings, which diverge from previous research, may indicate that contemporary feminists view sexual images of women differently than in previous decades. Theoretical and practical implications are described.     

Any complaints? A review of the framework of self-regulation in the Australian advertising industry

Prior to 1996, the Australian system of advertising self-regulation was regarded as a world model and many Asia-Pacific systems included components adapted from the Australian system. The recent changes to this system, encouraged by the abolition of the media accreditation system, consumer association pressure, criticism from the national advertisers association and the lack of a strong advertising agency presence, present an interesting framework in which to review the foundation concepts of self-regulation in advertising. This paper compares the new code of ethics with its predecessor and an international standard. It examines the performance of the code in terms of the number of complaints upheld and complaint by medium and product type and the voluntary response of advertisers. The findings suggest a weakening in the standard of advertising self-regulation in Australia, with fewer provisions in the Code of Ethics, a significantly fewer number of complaints upheld and no real power of enforcement. Although the case is Australian, it raises universal questions such as the vested interest of advertisers in controlling the process and roles of the consumer association, the media and the advertising agencies in guaranteeing the privilege of self-regulation.     

Consumer–brand assemblages in advertising: an analysis of skin,identity, and tattoos in ads

This paper discusses how the use of tattoos in advertising renders diverse brand–consumer assemblages visible. In considering advertising practitioners as professionals of entanglement, the paper emphasizes the embeddedness of practitioners’ use of tattoo symbolism in institutionalized marketing systems and in the cultural history of tattooing. In accordance with the recent emphasis on the importance of material devices for understanding contemporary sociality, this paper presents a semiotic analysis of a convenience sample of advertisements depicting tattoos. Tattoos are productive for the study of brand–consumer assemblages because they are situated on the human skin, which is a mediator between the individual and the socio-material world. Furthermore, tattoos reproduce discourses of both mainstream fashion and deviant subcultural identification, which imbue tattoo symbolism with communicative potency. This analysis demonstrates how the emergence of brand tattoos in advertising challenges the dominant consumer centrism in consumer research and suggests a networked, emerging understanding of the subject in which agency is distributed in socio-technical assemblages.     

Decomposing the effect of advertising: What happens in the retail channel?

The diverging interests of manufacturers and retailers famously give rise to the double marginalization problem but have consequences far beyond pricing. Advertising is another marketing instrument that is under the control of the manufacturer but its ultimate effect on consumer demand also depends on retailers’ pricing decisions. We decompose the effect of advertising in the channel and highlight an additional route through which advertising affects sales, namely via the changes in the retail price that a strategic retailer makes in response to changes in demand following manufacturer advertising. The total demand effect of advertising thus comprises the direct effects of advertising on market shares, and the indirect effects coming through adjustments that the retailer makes to the in-store prices of all the brands in a given product category in response to the shifted demand due to advertising. We match advertising data for four different categories (both food and non-food) to store-level scanner panel data, which also include information on wholesale prices. Controlling for wholesale prices, we establish in a reduced-form model that the retailer reacts to manufacturer advertising by changing retail prices instead of simply imposing a constant markup on the wholesale price. To further explore the role of the strategic response of the retailer in a systematic fashion and quantify the effects derived in the decomposition, we estimate a discrete-choice model of demand and determine the magnitude of the direct and indirect effects. We find that the indirect effect of advertising through retailer prices is about half the size of the direct effect, and thus substantively affects advertising effectiveness.     

Would you believe it? A detailed investigation of believability in comparative price advertising

Abstract

The construct of believability has been shown to be a key variable in consumers' evaluations of comparative price offers. This paper provides a detailed investigation of believability in the context of such offers. In particular, it investigates the impact of the presence of, level of, and type of advertised reference prices (ARPs) on believability across a range of product contexts. An experimental methodology is adopted for the study. Findings show that the presence of an ARP does not enhance believability but that the presence of a time limit does. Believability is also shown to vary inversely with the level of ARP but is not related to semantic cues, such as list prices, contained within the offer. The study provides evidence that the product context of the offer impacts on believability. Two interaction effects are also identified. The paper contributes to the extant literature by providing new insights into how consumers' believability is influenced by how a comparative price offer is presented. Such insights will be of interest to academics interested in pricing, practitioners seeking to ensure that their promotions have maximum impact, and policymakers hoping to ensure that consumers are not misled by dishonest comparative price advertising.     

Self-service technology in supermarkets – Do frontline staff still matter?

This paper uses the concept of psychological distance under construal level theory to explore the differences in the customers’ evaluations of overall store quality, satisfaction and loyalty, based on their experiences with the traditional staff-checkout method and the relatively new self-checkout machines. Two empirical studies, a field survey with retail shoppers in UK (N1 = 313) and an online survey with members of a consumer panel in Australia (N2 = 474), show that the perceived quality of staff-checkout has a stronger positive impact on the overall store quality, satisfaction and loyalty, than the quality of self-checkout. Similarly, satisfaction with staff-checkout has a stronger positive effect on store satisfaction and loyalty, than the satisfaction with self-checkout. Finally, loyalty to staff-checkout also has a stronger positive influence on store loyalty, than the loyalty towards self-checkout. These results show that despite growing use of self-service technology, frontline staff continue to be important for overall store evaluations.     

Do consumers still believe what is said in online product reviews? A persuasion knowledge approach

The objective of this paper is to examine the effects of knowledge about manipulated online product reviews on the effectiveness of such reviews in influencing consumers' product evaluations. The results of two empirical studies show that consumers clearly differ with regard to their knowledge that product reviews can be manipulated and that consumers who have such knowledge are less influenced in their product evaluations by reviews, specifically by negative ones. Furthermore, the effects of negative reviews are even weaker when consumers acquire their knowledge through a highly credible source (compared to a less credible source).     

Effects of outdoor advertising: Does location matter?

The growth and success of outdoor advertising is in large part due to the medium's ability to reach an increasingly elusive and mobile consumer. However, this success has come with a price. Public pressure and regulation have begun to eliminate or curtail many outdoor advertising locations, leading practitioners to question the effectiveness of the remaining outdoor advertising sites. Using associative learning techniques, these studies investigate what effect, if any, the environment in which outdoor advertising appears has on the attitudes, beliefs, and purchase intent of the advertised brand. The results of four experiments presented here suggest that the background environment does not impact advertising effectiveness, and practitioner concern of such may be unfounded. © 2011 Wiley Periodicals, Inc.     

Do frequency reward programs create switching costs? A dynamic structural analysis of demand in a reward program

This paper examines a common assertion that customers in reward programs become “locked in” as they accumulate credits toward earning a reward. We define a measure of switching costs and use a dynamic structural model of demand in a reward program to illustrate that frequent customers’ purchase incentives are practically invariant to the number of credits. In our empirical example, these customers comprise over 80% of all rewards and over two-thirds of all purchases. Less frequent customers may face substantial switching costs when close to a reward, but rarely reach this state.

An integrative framework of cooperative advertising: Should manufacturers continuously support retailer advertising?

A two-period game is developed in a bilateral monopoly where, besides pricing decisions, the retailer and manufacturer can set their advertising and cooperative advertising support rates for each period. It is demonstrated that, in addition to the established continuous cooperative advertising programs, in which the retailer advertises and the manufacturer supports retailer advertising in each period, two other advertising schedules are possible. First, the retailer advertises in each period, while the manufacturer only supports the second-period advertising. Second, whether or not the manufacturer provides a cooperative advertising program in the first period, the retailer only advertises in the second period and receives advertising support. The conditions under which each of these advertising arrangements is implemented are identified. In a continuous cooperative advertising schedule, the manufacturer may change his advertising support over time depending on the nature of the long-term effects of retailer advertising. The implications of these findings are discussed.     

Is negative affect in advertising general or specific? A comparison of three functional forms

More than one type of negative affect is experienced by a consumer exposed to an ad. Some types of the affect are persuasive; others are dissuasive. The present study, motivated by these observations, explores the internal relations of negative affect. Three functional forms are derived from two competing theoretical views and their measurements of negative affect. The superiority of the three forms is examined in terms of their parsimony and precision of estimation for the variances in consumers' attitudes toward ads. Results suggest that in predicting the persuasiveness of negatively affective ads, researchers need to consider the specific nature of the different types of negative affect and their directions of persuasiveness. More controlled and more effective negative-affect-inducing executions will then be made possible. © 1997 John Wiley & Sons, Inc.     

You eat “like a girl”: gender differences in content and effects of food advertising depicting sports

Research to date is just beginning to examine the nature and impact of portrayals of physical activity on children’s attitudes in the marketing literature. The following two-part study therefore examines gender differences in the content and effects of food advertising depicting physical activities among children. Study one presents a content analysis of food advertisements shown during children’s television programming, revealing that healthy foods are associated with females while healthy activities are associated predominantly with males. Study two then examines children’s responses to an advertisement for an unhealthy food that portrays both male and female characters engaged in physical activities. Gender differences appeared to be the result of males’ greater belief that a junk food can aid in one’s physical abilities, leading them to hold greater intentions to engage in physical activity as compared to females and males who viewed an ad without physical activity.