Professionals' views of comparative advertising and the scholarly research literature: A review and synthesis

Comparative advertisements that contrast identifiable, competing products or services may be among advertising's most important tactical weapons. Despite nearly a century of use in the USA, growing use by advertisers in many other countries, and decades of scholarly research, some researchers continue to argue that the status of empirical knowledge regarding comparative advertising's effectiveness remains equivocal. This study addresses this equivocality with a review of the research literature and comparisons with the findings of a recent survey of US advertising creative executives. The findings reveal substantial agreement among the beliefs of academic researchers and advertising professionals in regard to when and how comparative advertising will likely be effective. In addition to offering confirming evidence that academic researchers and advertising professionals do sometimes arrive at the same destination in regard to their shared understandings of advertising effects, the findings also point the way toward important directions for future research on comparative advertising.     

The Saga of the Directive on Misleading Advertising

After reviewing the legislative history and the current situation regarding the adjustment of member states' laws to implement the European Community's Directive on Misleading Advertising, it is clear that those who plan or hope to influence future regulatory activities can learn significant lessons from the past. Regulation of advertising should be in accordance with economic and social facts and opinions that are relevant to European conditions, indeed to conditions in each member state. All major interested and knowledgeable parties—business, consumer groups and government—should be consulted and involved directly in the process. The advertising business should make efforts to educate others accurately about the nature of advertising, the process of preparing effective and appropriate advertising and advertising's effects on consumers, the economy and society. The advertising business should also develop self- regulatory systems more fully.     

Effects of Word of Mouth Advertising on Consumer Risk Taking

The role of word of mouth advertising on modifying consumers' willingness to make risky product choices is analyzed. The authors present an information and perceived risk processing model of word of mouth advertising's influence on consumer behavior. Implications for advertising management are suggested.     

Attitudes toward advertising held by the boomers and the busters: some facts and myths

In the United States one of the common perceptions of young consumers, called the baby busters or the Xers, is that they are more critical of advertising in general than the baby boomers. Unfortunately, however, little empirical evidence is available to back up this perception. This study compares the boomers and the busters in terms of their general attitude towards advertising and specific advertising beliefs. Contrary to popular press reports that busters have a more negative attitude towards advertising than baby boomers, no significant differences were found in the two groups' general attitude towards advertising and in four of five ad-belief factors. In fact, the busters were found to have more favourable beliefs about advertising's utility as a source of hedonic amusement, challenging the popular press portrayal of the busters as ‘cynical gripers’. On the other hand, consistent with the popular press reports, regression analysis showed that the busters are knowing consumers and they are perhaps more suspicious and critical of advertising hypes than the boomers. Since the findings may be relevant only in the US market, replications of the study in other countries would be an important contribution to global marketers.     

Living in Media and the Future of Advertising

The future role of advertising and its professionals in society is considered using media theory and the production perspective on advertising as work. Given advertising's reliance on media to tell its stories, and people's everyday lives playing out within those same media, the moment these worlds collide provides an excellent starting point for futuristic exploration. Using a taxonomy of media as artifacts, activities, and social arrangements, advertising is considered in terms of an aesthetic opportunity, an ethical call to action, and a social responsibility.     

Advertising and Product Quality: Are Heavily Advertised Products Better?

It is often conceded that heavily advertised products cost more than those that are not advertised extensively. But there is considerable disagreement concerning what this difference means. Advertising's critics often claim it is evidence of monopolistic control over supply and prices, while advertising's defenders generally contend it reflects the higher quality of advertised brands. Surprisingly, there has been almost no research into whether or not heavily advertised goods are of better quality. As a preliminary inquiry into this interesting question, this paper attempts to examine the relationship between advertising expenditures and product quality.     

Toward a Bakhtinian typology of ambient advertising

Ambient advertising represents a growing sector of creative advertising practice, but has garnered little academic research. This paper aims to provide a theoretical foundation for the examination of ambient advertising's place within the marketing communication mix. The author presents a typology of ambient advertising based on the theory of the chronotope by Mikhail Bakhtin (1895–1975), the creative expression of the intersection between temporal and spatial dimensions, arguing that this represents the most fecund model for exploring the way in which ambient advertising seeks to harness the matrix of time and place. The typology offers a rationale for comparing different ambient campaigns on the basis of the degree to which they clearly express a particular chronotope and goes on to link this to a consideration of rhetorical persuasiveness.     

Advertising in the Large-Four Institutional Views

Broad assumptions about how advertising does-and should-function in society influence the thinking and actions of critics and supporters alike. Carey, Norris, Potter, and Sandage have analyzed advertising as an institution in American society. Here their “macro” perspectives are first described and then analyzed for their implications. Carey sees advertising linked with “market information,” and Norris with producers' quest for market power. Potter is wary of advertising's social control in an abundant society, while Sandage views advertising as serving the best interests of citizen and society. Their reasoning-and implications-are intriguing.     

The Panoptic Role of Advertising Agencies in the Production of Consumer Culture

Advertising's role in promoting an ideology of marketed consumption has been widely commented upon by critical theorists yet the mechanisms through which this influence becomes manifest remain relatively under-examined. In particular there has been no explicit examination of the mediating role of cultural knowledge in the production of ideologically driven advertising. This paper invokes the panoptic metaphor to position the knowledge gathered by and on behalf of advertising agencies as a major dynamic in the production of consumer culture. The consumer of advertising is a known entity for advertising agencies: the subject is watched, filmed, questioned, recorded, and tracked. Indeed, consumer biography and subjectivity itself has become material that is both produced and consumed by advertising agencies in order to produce culturally constitutive advertising. The paper integrates disparate literatures to situate knowledge of consumer culture at the hub of advertising's constitutive ideological influence.     

‘Madison Avenue puts on its best hair shirt’: US advertising & its social critics

This paper examines how the American advertising industry responded to its critics in the late 1950s and early 1960s. Criticism of advertising was not new. Advertising had come under scrutiny during the Progressive era and the New Deal years. What made this wave of criticism novel was that it occurred during a period of economic affluence and relative social stability. Although recent academic scholarship from authors such as Michael Schudson (1984) and Jackson Lears (1994) has challenged the social critics, popular discourse in the English-speaking world concerning advertising's social impact still reflects the views of Vance Packard (1957) and John Kenneth Galbraith (1958). Likewise, the arguments put forward by leading advertising practitioners almost four decades ago are still found in public relations initiatives on behalf of the industry.     

The Death of Advertising

Abstract

Mass media advertising as we know it today is on its deathbed, and its prognosis is poor. Advertising agencies are restructuring to accommodate a harsher advertising climate, agency income is flat, agency employees are being laid off, direct marketing is stealing business from traditional advertising, and the growth of sales promotion and integrated marketing communications both come at the expense of traditional advertising. The reason for advertising's impending demise is the advent of new technologies that have resulted in the fragmentation of media and markets, and the empowerment of consumers. In the place of traditional mass media advertising, a new communications environment is developing around an evolving network of new media, which is high capacity, interactive and multimedia. The result is a new era of producer-consumer interaction. Because of the speed of technological innovation, the new media advertising paradigm that results will attain prominence faster than did mass media advertising. The new paradigm of 21st Century Marketing and advertising will be dominant by 2010 and should last well into the middle of the century. If they hope to survive, university advertising departments will have about ten years to 1) think of themselves much more broadly, and 2) transform themselves into departments specializing in information transfer in the new media environment.     

Consumer resistance in a world of advertising clutter: The case of Adbusters

The pervasive influence of advertising and consumer culture is examined in relation to a postmodern condition marked by increased speed, fragmentation, and the decentering of the subject. This condition often prompts the consumer to develop ad‐avoidance strategies that protect his/her psychic space by filtering out excess advertising clutter (which also colonizes the public and discursive space of consumer culture). The struggle for these cultural spaces resembles a war of position between the ideology of consumerism and its opponents, who attempt to cultivate alternative worldviews toward consumerism. Although some perspectives see consumption as a means for self‐expression and the fashioning of multiple identities, this position valorizes consumption practices irrespective of their environmental and social impact. An evaluation of the antiadvertising magazine Adbusters illustrates the obstacles inherent in launching challenges to consumerism, and the difficulty of resisting consumerism given advertising's control over cultural spaces. Marketers have converted resistance efforts from some of consumption's most ardent critics into market segments by targeting certain goods and services toward them. © 2002 John Wiley & Sons, Inc.     

Die Entwicklung sozialer Ungleichheit und ihre politischen Implikationen in den USA

Wirtschaftsdienst - Donald Trump won in 2016 because of the building despair that began under Ronald Reagan’s presidency. Economic dislocations played a crucial role in convincing voters in...     

Cognitive biases,risk perception,and venture formation: How individuals decide to start companies

Despite the high risk involved, thousands of individuals decide to start ventures. Past research, however, has found that entrepreneurs do not have a high-risk propensity, that is, a great willingness to knowingly take risks. This study, therefore, explores how individuals cope with the risks inherent in their decisions, and suggests that entrepreneurs may not perceive the riskiness of starting ventures.The study's findings suggest that risk perceptions may differ because certain types of cognitive biases lead individuals to perceive less risk. Cognitive biases are common types of mental shortcuts used to make judgments. This study examines three cognitive biases that previous research has suggested may lower risk perception. The first, overconfidence, refers to the failure to know the limits of one's knowledge. The second bias tested, the illusion of control, occurs when individuals overemphasize the extent to which their skill can increase performance in situations where chance plays a large part and skill is not necessarily the deciding factor. Because the individuals believe that they can control largely uncontrollable events, they also think they can accurately predict the outcome of the events. Finally, the third bias, the belief in the law of small numbers occurs when an individual uses a limited number of informational inputs (a small sample of information) to draw firm conclusions.This study's sample consisted of 191 students pursuing a Masters of Business Administration. The students' responses to a survey based on a case study regarding a decision to start a venture were examined. The survey included questions about the students' willingness to start the venture, their perception of the venture's riskiness, and the extent to which they exhibited cognitive biases in their decision processes.The study's findings tentatively suggest that individuals start ventures because they do not perceive the risks involved, and not because they knowingly accept high levels of risks. The belief in the law of small numbers lowered an individual's perceptions of a venture's riskiness, suggesting that some individuals draw firm conclusions from small samples. An illusion of control also decreased risk perception, suggesting that individuals starting ventures might not acknowledge that certain tasks, important to the venture's success, are beyond their control.Some argue that biases might be associated with venture failure. If this is the case, the very processes that increase the likelihood of starting a venture may actually decrease performance. Entrepreneurs may choose to minimize their biases by soliciting and paying heed to the advice of outsiders, or by using group decision-making techniques, such as devil's advocacy or dialectical inquiry.Others, however, suggest that early in the decision process, biases may be beneficial because they lower risk perception, which allows entrepreneurs to generate the commitment needed for success. Even if this is true, entrepreneurs should still institute processes to increase learning so the venture can adjust to unfolding realities and avoid any damage caused by initial misperceptions. Similarly, entrepreneurs need adequate safety nets in case their biases lead them to encounter unforeseen difficulties. The potential positive and negative effects of biases and perceiving low levels of risk suggest the importance of exploring this area further.     

Public Perceptions of Billboards: A Meta-Analysis

While outdoor advertising is currently the fastest-growing traditional advertising medium, the value of billboards to the public has long been debated. Drawing on a conceptual framework developed by Farris and Albion (1980), contrasting two schools of thought about advertising's economic and societal role, this study reports a meta-analysis of more than 100 surveys of U.S. public opinion toward billboards, covering almost eight decades of findings from more than 100,000 participants. Variables analyzed include the degree to which the public believes billboards are informative, entertaining, irritating, and helpful to the economy; in need of more regulation; and beneficial overall. Results suggest that, both historically and currently, consumers view billboards positively, and a strong majority do not support billboard bans. Moreover, the overall results are more supportive of the notion that the public subscribes to the Advertising = Information school of thought as opposed to the Advertising = Market Power school.     

Where Should Articles on the Link between Tobacco Advertising and Consumption Be Published?

Abstract

Articles on tobacco advertising's impact should be published in the Journal of Advertising or in comparable specialized scholarly outlets such as the Journal of Consumer Research, Journal of Marketing and Journal of Advertising Research, plus economic journals for econometric analyses. Instead, many analyses of the relationship between tobacco advertising and consumption as well as of smoking initiation and prevalence as related to advertising, can now be found in such publications as the Journal of the American Medical Association (JAMA), the British Journal of Addiction, the New England Journal of Medicine, and the Journal of Health Politics, Policy and Law. To add insult to injury, those articles are the ones that are frequently quoted on the front pages or in the health columns of major newspapers and magazines as well as by the broadcast media. What is going on here? Should we, as advertising scholars, care about these developments?     

Young People Are the Front Lines of Financial Inclusion: A Review of 45 Years of Research

Amidst concerns about percentages of households that remain unbanked or underbanked, policy endeavors have emerged to promote financial inclusion by making financial products such as savings accounts readily available. While these endeavors have primarily concentrated on households, young people may be the front lines of financial inclusion because they may be more likely to be banked in young adulthood and beyond when they start off with savings accounts earlier in life. This article addresses young people's financial inclusion by comprehensively reviewing 60 research studies on young people's savings, discussing the role of the family in young people's financial inclusion, discussing financial inclusion from an institutional perspective, presenting policy implications, and identifying gaps in knowledge and opportunities for research. Policies that open savings accounts for young people early in life may be a promising strategy for extending financial inclusion and preventing unbanked or underbanked status later in life.     

Moderating effects of tolerance for ambiguity and risktaking propensity on the role conflict-perceived performance relationship: Evidence from singaporean entrepreneurs

This study investigates the effects of tolerance for ambiguity and risktaking propensity in mediating the relationships between role conflict and perceived performance among 70 entrepreneurs in small and medium-sized businesses in Singapore. Entrepreneurial activity has been widely recognized as a major factor driving Singapore's economic development. Further insights therefore can be gained by this study, which addresses the above issues from the perspective of Singaporean entrepreneurs. As founders of their enterprises, entrepreneurs are often involved with many aspects of activities that create a high potential for conflict, having to play multiple roles, coping with competing and conflicting demands, and overcoming or accommodating to constraints. Role conflict faced by the entrepreneur can impede the entrepreneur's ability to perform effectively. However, the relationship between role conflict and perceived performance is not direct.Many entrepreneurial decisions will also involve ambiguity, because these decisions result in actions that are innovative and original. As entrepreneurs, they will have a significantly greater capacity to tolerate ambiguity than managers have. This suggests that an entrepreneur's tolerance for ambiguity may be able to assist in dealing with, or to moderate, the adverse personal effects of role pressures generated by role conflict. Investigation into this is the thrust of the first part of this research.The literature on entrepreneurship has often portrayed the entrepreneur as a risk-taker with expectation of receiving a profit as reward for this risk-bearing. Many studies on risk-taking behavior among entrepreneurs are focused on the risk-profile of entrepreneurs, that is, whether entrepreneurs are decidedly more risk-taking than nonentrepreneurs. In this second part of research, the investigation examines whether the effects of role conflict on performance outcomes are tempered by the entrepreneur's risk-taking propensity. An entrepreneur with high risk-taking propensity is more likely to succeed in coping with uncertainty and minimizing role stress than one with low risk-taking propensity.Results indicate that Singaporean entrepreneurs higher on tolerance for ambiguity or in risk-taking propensity are better positioned to “neutralize” the effects of role stress in the entrepreneurial role, leading to better performance outcomes. The weaker interactive effects however could be explained by several constraining circumstances: “the stringent control and omnipresence of the government in most businesses” (Tan and Tay 1994); “dominance of MNCs in key industries, and the domination of government-linked businesses in various services” (Boey and Chiam-Lee 1994)—all of which are said to somewhat discourage risk-taking and uncertainty-bearing. Despite the small moderator effects, these findings should be of significance to practitioners, because they suggest that the examination of the relationship between role conflict and performance would be incomplete without also considering the moderating effects of tolerance for ambiguity and risk-taking propensity.     

Marketing through Instagram influencers: the impact of number of followers and product divergence on brand attitude

ABSTRACT

Findings of two experimental studies show that Instagram influencers with high numbers of followers are found more likeable, partly because they are considered more popular. Important, only in limited cases, perceptions of popularity induced by the influencer's number of followers increase the influencer's perceived opinion leadership. However, if the influencer follows very few accounts him-/herself, this can negatively impact popular influencers’ likeability. Also, cooperating with influencers with high numbers of followers might not be the best marketing choice for promoting divergent products, as this decreases the brand's perceived uniqueness and consequently brand attitudes.