Advertising Research in the Post-WTO Decade in China

This paper reviews advertising studies on China published in 13 advertising, marketing, and business journals during the decade after joining the World Trade Organization (WTO) (2002-2011). Since its WTO entry, China's advertising industry (including regulatory environment and advertising practices) has fundamentally changed, turning it into the world's fastest-growing advertising market and the country with the largest pool of netizens. We adopt the "glocalization" framework to selectively highlight five themes in our review: (1) diversified/shifting cultural values, (2) language and brand names, (3) acceptable/offensive advertising, (4) media growth and control, and (5) agency management. Our discussion follows Taylor's (2005) suggested agenda for international advertising research and focuses on the implications for academic researchers and advertising professionals that these papers collectively provide. In the transitional market in China, insights from past studies are relevant for its future development in advertising both locally and globally.     

Advertising and the Federal Trade Commission: A Reposte

Abstract

Making advertisements which perform their basic function of selling goods and services in a competitive economy has become more difficult lately, largely due to increased intervention in advertising matters by the Federal Trade Commission and a broadening of their interest in all affairs relating to the market place. Somewhat paradoxically, this has had some favorable effects on the advertising business. It has encouraged greater attention to product performance. It has caused advertising to be more specific and accurate in what It says or implies. And it has accelerated the movement toward serious advertising self-regulation. But it's a short step from the sublime to the ridiculous. And in its vigorous efforts to regulate, the FTC has often overstepped its authority and has taken stupid—If not down-right dangerous—positions.     

China: Getting beyond the headlines

China's continued economic growth even in these tough times attracts headlines. But China appears to be taking a disturbingly harder line with foreign business. By examining the deep political and social dynamics—China's “Four Basic Questions”—that propel China's rise, we can begin to understand and come to grips with what underlies this apparently new attitude. Surveys by the World Bank and other international organizations show that China's business environment fundamentals might not be as strong as we think. Still, China's economic momentum will continue despite the many problems the country faces. While foreign businesspeople today may express concern over negative trends in the business environment, they should be realistic. Behind the ups and downs of the Chinese scene, the country is struggling to resolve issues left over from history. Clear thinking about these basic issues is needed to survive—and perhaps prosper—in this environment. © 2011 Wiley Periodicals, Inc.     

Beliefs,attitudes and behaviour towards Web advertising

To examine Web users' beliefs, attitudes and behaviour towards Web advertising, Pollay and Mittal's (1993) belief model is tested via structural equation modelling. The results suggest the model is a robust Web advertising effectiveness measurement tool. Underlying the study are the hypotheses that Web users' attitudes towards Web advertising are a function of several belief factors and influence users' behavioural intention. Results indicate the belief factors—product information, hedonic pleasure, and social role and image—related positively to subjects' attitudes towards Web advertising. Web users' beliefs about materialism, falsity/no sense and value corruption related negatively to their attitudes towards Web advertising. Web advertising attitudes impacted on reported behaviour towards Web advertising such that the more positive Web users' attitudes were towards Web advertising, the greater the likelihood that they would respond favourably to Web ads. In addition, the higher the respondents' income and education, the more negative their reported behaviour towards Web advertising.     

National advertising,dual-channel coordination and firm performance

With the rapid development of e-commerce, many manufacturers nowadays opt to open an online channel to engage in direct online sales. The mix of retailing with an online channel adds a new dimension of competition and complementarity to a product's distribution channels. Our model focuses on the strategic effect of the manufacturer's national advertising on alleviating the channel competition. We use a game-theoretical model to show that opening an online channel with the added national advertising effectively alleviates the channel conflict and thus helps improve the whole channel and each channel member performance. Depending on the different product categories and the degree of channel substitutability, the manufacturer's investment in the national advertising also will be different. The value of national advertising increases as product is more compatible with online sales and channel substitutability increases.     

The Witches' Brew

Satellite broadcasting has been front-page news in the UK recently; thus this article is timely. Regrettably, the British Government's proposals could not be included; however, the main purpose here is to look at satellite broadcasting from the viewpoint of possible pan-European controls. As such, if this article puts the new British proposals into the context of a European framework it will have served its purpose well. To set the scene an attempt is made to outline the issues and problems which must be considered, and a summary of the main proposals for launching and operating satellites is given. The main thesis considers the powers and possible activities of the European institutions—the European Community and Council of Europe—with regard to controls of advertising on satellite broadcasting in Europe.     

Trends in Total Advertising Expenditure in 29 Countries, 1970–1980

There is a growing body of national studies identifying reasons for ‘juvenile smoking initiation’ that is, the conditions, motivations and precipitating circumstances associated with children starting to smoke. In contrast, there has been a lack of systematic cross-national research to compare juvenile smoking initiation in a similar manner in countries with different values, levels of economic development, political systems and social stratification. Controlling for all of these factors is a daunting task indeed for any researcher. However, considering that one common remedy has been proposed to combat juvenile smoking, namely, to ban or severely restrict tobacco advertising, it was highly desirable to compare countries which differ significantly in terms of public policies towards tobacco advertising, in order to determine the relative impact of tobacco advertising on why juveniles start smoking. To this end, the tobacco industry's international information organization (INFOTAB) commissioned the Children's Research Unit to investigate a variety of personal, social and cultural factors—including advertising—bearing on juvenile smoking initiation in a sample of countries selected for their different systems regulating tobacco product advertising.     

The Federal Trade Commission Redefinition of Deception and Public Policy Implications: Let the Buyer Beware

The current movement toward market deregulation in the United States is perhaps no better illustrated than by the proposals put forth by the Chairman of the Federal Trade Commission (FTC), James C. Miller, III. His far reaching suggestions would alter considerably the approach taken by the FTC toward the regulation of advertising. This paper reviews the current standards of deception in advertising regulation and compares them with Miller's proposals for new standards. Two recent cases settled under the current guidelines are presented. The probable outcome of these cases under the proposed guidelines is examined by employing a framework proposed by Miller and Hutt for analyzing the effects of regulatory policy. Based on that examination, the authors conclude that the current standards have allowed federal and state agencies to bring about elimination of false advertising claims that would not be possible to prove under the proposed guidelines. While the proposed changes may bring certain benefits to government, business, and consumers, their most significant effect could be to reintroduce the rule of caveat emptor.     

A New World Order: The Role of Advertising in Russia and the NIS

Changes in worldwide political and economic strategies have contributed to the changing role of advertising as an institution in Russia. One result is the rapid growth of Russia's advertising industry and its similarity to Western classical liberalism and neoliberalism propositions of marketing communication. This article builds on the author's previous studies on the role of advertising in what is now Russia through participants' own words and visions of advertising. In-depth interviews with business and industry professionals, academicians and government representatives provided insight into changes in the perception and practice of advertising in Russia.     

Is there “no such thing as business ethics”?

What are we to make of the claim that we often hear, that there is no such thing as business ethics? This essay first examines two arguments that might be in people's minds in making such a claim — that business is a “game,” and hence the ordinary constraints of morality do not apply, and that one cannot survive in business if one is too “ethical.” The critique of these arguments begins the process of making clear what business ethics is. The paper then proceeds in a more positive vein to define and explain for the sceptic what business ethics is. Everyone must confront the question, what should I do in my business relationships? Business ethics is defined, then, as the effort to develop Socratically one's answer to this question, that is, through the critical examination of alternatives. In the process of explaining this notion, several other senses in which someone might say that there is no such thing as business ethics are explored and the basic distinction between the moral point of view and ethical egoism is introduced.     

Marketing Gum, Making Meanings: Wrigley in North America, 1890-1930

This essay is a business and cultural history of Wrigley marketingin North America from the 1890s until the early 1930s. Wrigleyrelied on wholesalers at a time when consumer goods makers wereexpanding their sales forces. A prolific advertiser, Wrigleyprovided favorable terms to retailers carrying chewing gum,countering the view that advertising, by enabling direct communicationbetween manufacturer and consumer, diminished retailer cloutin the chain of distribution. Wrigley advertising constructedmeanings on multiple levels, discussed here with the theoreticaltools of liminality and semiotics. The text of Wrigley ads championedrelief for two modern conditions: indigestion and stress. Theimagery, mainly that of the liminal "Spearman," evoked notionsof unworldly escape and infantile nostalgia. The ads were richlypolysemic. Accordingly, Wrigley's widespread popularity andmarket dominance by 1930 should be assessed in terms of bothmarketing function and representational process.     

A Dual-Step and Dual-Process Model of Advertising Effects: Implications for Reducing the Negative Impact of Advertising on Children's Consumption Behaviour

Children are important targets of advertising campaigns from companies. However, children have been found to be particularly vulnerable to negative effects of advertising, and protecting children from these effects is an important task of consumer policy. Two important aspects have to be considered in this task. First, advertising affects judgements and behaviour not only during ad exposure but also in delayed consumption and purchase contexts. Second, advertising operates largely at an implicit level—during ad exposure as well as in consumption decisions. The current article introduces a dual-step (ad exposure vs. purchase/consumption) and dual-process (implicit vs. explicit) model of advertising effects on children. The model is based on a review of implicit advertising effects and implicit mechanisms of self-control. It implies that consumer policies intending to prevent undesired advertising effects should support interventions that strengthen advertising and purchasing literacy and, in addition, implicit self-control mechanisms in children. As self-control in consumption decisions is largely relevant for, and learned during, shopping and consumption, such interventions should focus on educating parents or other primary caregivers because they are the most likely persons to accompany children in such situations and have a great influence on children's implicit learning.     

Personal Characteristics Underlying Ethical Decisions in Marketing Situations: A Survey of Small Business Managers*

This study analyzes the marketing ethics decision‐making process of small business managers. In particular, it examines the relative influences of ethical perceptions, personal moral philosophies, and gender on ethical intentions of small business managers. The sample of this study consists of professional members of the American Marketing Association working in companies with 500 employees or fewer. The results reveal that perceived ethical problem is a positive factor of a small business manager's ethical intention. The results generally support our hypothesis that female managers tend to be more ethical in their intention than their male counterparts. However, the results indicate that neither dimension of personal moral philosophy—idealism and relativism—is a significant predictor of a manager's ethical intention.     

Competition,Strategy, Technology and People: The Challenges Facing PR

A recent survey of leading UK PR practitioners has identified a dynamic, swiftly evolving environment for the public relations industry. Heightened competition, wide-ranging new opportunities and threats stemming from the perceived need to internationalize, the desire for more influence in clients' business strategy formulation, training and recruitment dilemmas, ever-changing technology and an increasing requirement to evaluate the worth of PR are only some of the most pressing issues. This article reviews the survey's findings—revealing a complex and swiftly evolving marketplace—before drawing out some of the principal implications. There are interesting parallels with events in advertising.     

Advertising Self-Regulation in a Broader Context

Abstract

As the world braces itself for a unified European marketplace, it is critical that we look at the industries likely to be influenced by, and in turn shape, European integration. The advertising industry and its handling of unification are particularly important given that advertising is the voice of the marketplace and a major communications force, shaping cultural norms and values. In order to ensure the free movement of goods, communications about those goods must also move freely. At this time, however, each European country has its own rules and regulations for advertising. One of the major issues facing European advertising as the European Union (EU) comes together is the regulation of cross-border advertising. In 1991 the European Commission issued a call to action for the European advertising industry and almost immediately the industry began work on a trans-border complaints system. Since then the European Advertising Standards Alliance has worked diligently to iron out issues resulting from international advertising disputes. As this article shows, European regulators must determine how advertising will fit into the larger scheme of European law; who will be responsible for controlling advertising; and whether it should be monitored at the national or pan-European level. Certainly the advertising industry is not the only one struggling to determine which controls can remain at the national level and which should be raised to the European rank. But this analysis of how advertising self-regulation fits into the European legal scheme does provide a useful case study of the hurdles ahead. It will be interesting to watch as Europe works to find the proper balance between free trade and national autonomy to control industries.     

The Use of Humor in Asian and Western Television Advertising:

Researchers frequently cite the importance of testing the validity of Western business theory in other regions of the world such as Asia. In response, this study seeks to determine whether US.-based theory concerning the use of humor in television adver- tising has predictive validity in two rapidly emerging Asian markets (Korea and Thailand) and one European market (Germany). Of par- ticular interest are hypothesized relationships between product type and marketers' use of humor to communicate brand information. While some evidence of predictive validity is found, the overall pattern of results suggests that international business managers should exercise caution before assuming that U.S. advertising suate- gies apply in other national markets.     

A Two-Course Survey of “Creative Country”

Abstract

This article is adapted from a chapter on creativity in a forthcoming book which is not about the business of advertising, but which deals with the advertising of business. Titled “The Chief Executive's Journal of Capitalistic Advertising,” the book presents a most timely concept of advertising, and one which gives the Chief Executive definite responsibilities. As a student of creativity, a Chief Executive needs a grasp of the fundamentals not unlike that of a college sophomore taking Creativity 101. This article aims to provide just that.     

Advertising Myopia

This article points out a firm's advantages in promoting the generic product rather than the brand. Promoting the generic product—generic advertising—can lengthen the product's life cycle, increase per capita consumption of the product and expand the size of the market for the product. The authors discuss the types of situations in which generic advertising is used, and the reason that it is not used more extensively. They present a viable solution to this dilemma.     

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.     

Advertising Contribution to a Firm's Profit: Theory and Evidence from the Airline Industry in the United States

The author examined how to make advertising efficiency more effective in achieving the profit objective of a firm. The current study allowed profitability to be influenced by both multiple controllable efficiency factors (e.g., advertising efficiency and operations efficiency) and one uncontrollable environmental factor (i.e., growth timing). The results showed that advertising efficiency was most effective in driving up a publically-traded U.S. airline's profitability when the airline happened to grow its business later than average, whereas advertising efficiency was least effective when the firm ended up growing its business earlier than average. Also shown in the results was that drivers of profitability also included operations efficiency and growth timing.