A Practical Guide to Experimental Advertising Research

Experiments are conducted to help establish cause-and-effect relationships, and they can be powerful tools for doing so. We review fundamental concepts for conducting experimental advertising research. Good experimental research involves careful consideration of independent and dependent variables, and what they are supposed to represent. To this end, we review threats to construct validity as well as offer some suggestions on how to think about external and ecological validity in ad research. We review three quasi-experimental research designs and three simple, randomized experimental designs, along with more complex factorial design experiments. Finally, we discuss ethical considerations and the crucial role researchers play in maintaining research integrity.     

The Tipping Point of Design: How Product Design and Brands Interact to Affect Consumers’ Preferences

Existing research on product design has demonstrated the importance of aesthetics in generating favorable consumer responses. However, the literature has only recently begun to explore if and to what extent the impact of product design is influenced by brand strength. Whereas some research indicates that strong brands may benefit less strongly from aesthetically attractive designs, other research suggests that attractive designs are more persuasive when they are paired with a strong brand. In this research, these two competing predictions were tested through three studies with German car buyers. In Study 1, participants were exposed to a fictitious car that was paired with a randomly chosen brand name. In Study 2, participants were presented with a set of existing cars and were asked to choose one. Both studies yield converging evidence and show that product design and brands interact in a positive fashion, suggesting that attractive designs exert a greater influence on consumers’ decision processes when they are accompanied by a strong brand. Study 3 extended these findings by demonstrating that strong brands only increase the impact of attractive designs when perceived risk is high but not when it is low.     

Advancing the aesthetic middle principle: Trade-offs in design attractiveness and strength

Key design properties of marketing artifacts that influence consumer response include perceived attractiveness (the valenced evaluative response to the artifact) and perceived strength (the artifact’s ability to capture attention). The aesthetic middle principle contends that the designs most effective in generating purchase intentions are counterintuitively not the most attractive and strongest, but rather designs tempered to be moderately attractive and very strong or very attractive and moderately strong. Such designs are visual representations closer to the aesthetic middle, thereby prompting more favorable consumer responses. This research empirically tests the aesthetic middle principle in two consumer field studies, using both simple (typeface) and complex (wine package) designs. In a subsequent controlled experiment, the strongest aesthetic middle effects emerge for hedonic (rather than utilitarian) products and when less product-related information is available. The effects of the aesthetic middle occur regardless of available cognitive resources or individual differences in design acumen.     

Advantage by design: Competing with opportunity-based organizations

Organization design is becoming more and more a cornerstone of competitive advantage in today's increasingly complex companies. Our research on firms that have achieved significant advantage suggests that many did so by creating powerful synergies among their capabilities, among market opportunities, and between the two. But the way they recognized and realized these synergies was through their multidimensional organizational designs. Such designs not only reify and empower the dimensions within or across which synergies can occur (function, product, market segment, customer, etc.), they also define and manage the collaborative interfaces needed to discover, exploit, and renew those synergies.     

Individual Priming in Virtual Team Decision-Making

Virtual teams have different interactions than face-to-face teams because they rely on information and communication technologies, which can impede or assist certain human cognitive processes. Past research has shown that although virtual teams exchange more information than face-to-face teams, poor decisions often result, because team members do not consider the unique information they receive from others. Drawing from cognitive psychology, our research explored a unique way to improve team decision-making through the use of cognitive priming. We proposed that priming group members to pay attention to others or to engage in counterfactual thinking would improve team members’ cognition and, therefore, team performance. Prior research with individuals and brainstorming teams has shown these forms of priming to improve performance; however, no research has attempted to use priming to improve the outcomes of virtual team decision-making, which requires deeper interaction and cognitive involvement than brainstorming. We performed two lab experiments using primes that have been found to improve the individual decision-making process. We found that priming had some impact, but it did not significantly improve decision quality. Various reasons are discussed to explain why priming techniques may not be as powerful in teams as in individuals, and future research ideas are suggested to build on our initial work on priming in virtual team decision-making.     

Assessing interaction effects in Latin square-type designs

Latin, Graeco-Latin and hyper-Graeco-Latin squares are experimental designs in which all main effects are confounded with interaction effects involving two or more experimental factors. Most marketing research experiments sing these designs blindly test for main effects without establishing that interaction effects are indeed not significant. This paper first shows how the presence of significant interaction effects can distort the results of experiments using Latin square-type designs. It then presents three procedures that test the assumption of insignificant interaction effects in these designs and discusses the conditions under which each method is best employed. The unique feature common to all three procedures is that they utilize the experimental data itself to test the validity of the additivity assumption. Finally, a new procedure is presented for replicated Graeco-Latin and hyper-Graeco Latin squares that unconfounds a single, major main effect from all second order interaction effects, and estimates one two-way interaction effect involving the major experimental factor of interest. Applications illustrating the usefulness of all four procedures are presented.     

A nonconscious processing explanation of consumer response to product design

Even though there is an established body of research concerning nonconscious memory processes and how they may influence preference formation, the importance of this work for understanding consumers' responses to product designs has been largely overlooked. Although evidence that product design can have a significant influence on consumers' reactions to products continues to grow, the process(es) by which responses to designs are formulated has received relatively little attention. The primary purposes of this article are to develop a nonconscious processing explanation of consumer response to product design and to focus attention on the area of design processing. A conceptual basis for understanding product design response formation is provided by research relating to various aspects of nonconscious processing (e.g., mere exposure, implicit learning). The implications of the proposed approach for consumer behavior and marketing are explored. Finally, several suggestions for future research directions are discussed. © 1999 John Wiley & Sons, Inc.     

Is that website for me?

This study proposes and tests a moderated mediation model for website-self-congruency effects triggered by the visual designs of websites. The model specifies the conditions (i.e. when participants are not involved with the product category) in which website-self-congruency effects emerge, and identifies specific cognitive processes (i.e. generating self-referencing and self-brand connection perceptions) and affective processes (i.e. experiencing positive emotions and browsing enjoyment) that mediate the influence of website-self-congruency effects on attitudes and purchase intentions. The findings of this study support the proposed model and hypotheses, and thereby offer significant implications for research and practice.     

Substance versus trappings in new product management

When firms experience a faster pace of change in their markets and in the technology used they frequently have to turn to developing new products in order to safeguard their competitive position. This paper identifies possible formal organisation designs for developing new products and discusses a method for understanding the different ways in which firms actually undertake the detailed tasks involved. New avenues for further practically orientated research are identified.     

Sequential sampling models of choice: Some recent advances

Choice models in marketing and economics are generally derived without specifying the underlying cognitive process of decision making. This approach has been successfully used to predict choice behavior. However, it has not much to say about such aspects of decision making as deliberation, attention, conflict, and cognitive limitations and how these influence choices. In contrast, sequential sampling models developed in cognitive psychology explain observed choices based on assumptions about cognitive processes that return the observed choice as the terminal state. We illustrate three advantages of this perspective. First, making explicit assumptions about underlying cognitive processes results in measures of deliberation, attention, conflict, and cognitive limitation. Second, the mathematical representations of underlying cognitive processes imply well documented departures from Luce’s Choice Axiom such as the similarity, compromise, and attraction effects. Third, the process perspective predicts response time and thus allows for inference based on observed choices and response times. Finally, we briefly discuss the relationship between these cognitive models and rules for statistically optimal decisions in sequential designs.     

Product standardisation in the food service industry: post-purchase attitudes and repurchase intentions of non-Muslims after consuming halal food

In order to satisfy the Muslim market segment, many restaurant and fast food companies in Western countries have standardised their products by switching to halal. The purpose of this research is to discover the extent to which non-Muslim consumers in non-Muslim countries experience cognitive dissonance when they think about restaurants and fast food outlets having likely served them halal-produced food, and the extent to which these consumers intend to repurchase halal food. Data came from a total sample of 1097 non-Muslim consumers in Canada, Spain and the United Kingdom. The full model, with religious identity, ethnic identification and interest in animal welfare as antecedents of cognitive dissonance, explained 35% of the variance in consumers’ repurchase intentions. Our findings suggest that many non-Muslims do not have a particular issue with consuming halal food, but they may react negatively if they unintentionally consume halal food and perceive that they have been deprived of information, or worse still, deliberately deceived. The research makes a number of contributions to marketing knowledge with regard to the negative spillover effects that can result from faith-based product standardisation, and the influences of consumer interest in animal welfare and deprivation of product information on consumer behaviour.     

Penny wise and pound foolish? How thinking style affects price cognition

Nine-ending pricing is a common marketing technique because of the traditional belief that consumers pay more attention to the dollar digits and less attention to the penny digits. This research challenges the universal effectiveness of nine-ending pricing and identifies thinking style as a moderator for the nine-ending price effect with analytic (holistic) thinkers more (less) prone to the effect of nine-ending prices. Further, we examine cognitive resource as a boundary condition for the moderating effect. Our results demonstrate that holistic thinkers are not responsive to nine-ending prices when they have unlimited cognitive resources. With limited cognitive resources (e.g., under time pressure or cognitive load), both holistic and analytic thinkers are subject to the nine-ending price effect. We identify the lack of holistic thinking as a mechanism underlying the nine-ending effect.     

Package graphic design and communication across cultures: An investigation of Chinese consumers' interpretation of imported wine labels

Package graphic design is a powerful tool for brand communication. Yet, an important question is how the designs are understood across cultures. A considerable amount of research has focused on cross-cultural marketing communications, prompting discussions on the emergence of global consumer cultures, which make package standardization possible or, conversely, the awareness of cultural differences, which has suggested that package localization is necessary. No research, however, has considered this question from a design-centered perspective and examined whether some package graphic designs are more likely than others to remain intelligible across cultures. This research proposes that packages using motivated signs in their graphic designs are more likely to be intelligible across cultures than packages using arbitrary signs. To explore this proposition, eight imported wine labels were analyzed through a semiotic study (study 1). Then, two studies investigated the interpretations of the wine labels by Chinese consumers. The results indicate that the labels that were classified as “motivated” succeeded in conveying the desired brand meanings to the Chinese respondents (study 2: N = 1391) even when they were not familiar with the wine brand culture (study 3: N = 795). The research presents a theoretical contribution by introducing the concept of sign motivation to the marketing literature and nuancing the classic assumption that visual signs convey different meanings across cultures. It also presents a managerial contribution by presenting a conceptual framework and methodology for the analysis of whether or not a graphic design is likely to be intelligible across cultures. It therefore provides guidelines for the design of packages for international markets.     

Understanding Consumer Response to Sponsorship Information: A Resource‐Matching Approach

Sponsorship of sporting teams and events has become an increasingly popular form of corporate and brand communication. Despite the continued growth of sponsorship spending, the corresponding literature base is highly fragmented and little agreement exists related to the psychological mechanisms underlying response. This paper integrates several prominent sponsorship research streams in promoting a “resource‐matching” perspective of cognitive elaboration and attitude change. This research holds that in the absence of clear functional fit between sponsor and event, identifying a basis for sponsor–event fit is likely to require some degree of cognitive effort. The results indicate stronger social identification with the sponsored event influences the favorability they attribute to sponsor motives and promotes stronger perceptions of fit between the sponsor and the sponsored activity. Further, the results indicate fit perceptions mediate the relationship between attribution and sponsorship response. Consistent with ELM theory, when cognitive resources are insufficient for the complexity of the fit‐matching task, social identification may still act as a peripheral cue in driving a positive affective response to sponsorship information.     

Methodological issues in international entrepreneurship research

Empirical research in the emerging field of international entrepreneurship (IE) is assessed to provide insight as to the ‘state of the art’ of IE methodologies. Fifty-five articles were systematically analyzed focusing on time frame and research context, sample characteristics, data collection/analysis procedures, and equivalence issues. Results indicate both strengths and weaknesses in IE methods. The authors present implications for developing a unifying methodological direction in the field and the evolution of a truly multidisciplinary approach. They also outline the need for dynamic research designs that integrate positivist with interpretivist methodologies and incorporate time as a key dimension. Finally, they discuss the need for better IE sampling frames and call for more effort in establishing and reporting equivalence in cross-national studies.     

Evaluating Consumer Protection Laws: II. Promising Methods

Three quasi-experimental research designs which promise the possibility of yielding strong conclusions about the effects of consumer protection initiatives are reviewed. The threats to internal validity which face these designs are described and illustrated with specific studies. The broader implications of evaluation research for consumer protection are discussed.     

Evaluating Consumer Protection Programs: Part I. Weak But Commonly Used Research Designs

In this two-part article, current methodological approaches to the evaluation of consumer protection reforms are critically reviewed. In Part I, three quasi-experimental research designs commonly used to evaluate consumer protection initiatives are examined. It is shown that these designs are inherently incapable of yielding strong conclusions about the effects of a law or regulation. In Part II, which will be published in the next issue, research designs which allow stronger causal inferences about the effects of a reform proposal are reviewed. Implications of the review are then discussed in terms of future public policy and evaluation research in the consumer protection area.     

What Cognitive Science Tells Us About Ethics and The Teaching of Ethics

A relatively new and exciting area of collaboration has begun between philosophy of mind and ethics. This paper attempts to explore aspects of this collaboration and how they bear upon traditional ethics. It is the author's contention that much of Western moral philosophy has been guided by largely unrecognized assumptions regarding reason, knowledge and conceptualization, and that when examined against empirical research in cognitive science, these assumptions turn out to be false -- or at the very least, unrealistic for creatures with our cognitive structures. The fundamental tension between the Western idea of morality (as basically rule-following) and the way in which people actually confront and experience moral dilemmas is a result of our failure to take the insights of cognitive psychology seriously. This failure has had a dramatic impact on not only how we teach ethics, but how we attempt to live out lives.     

Cognitive mechanisms in entrepreneurship: Why and when enterpreneurs think differently than other people

Because of their importance in creating wealth—both personal and societal—entrepreneurs have long been the subject of intensive study. Past research has focused on important issues such as: Why do some people, but not others, recognize or create new opportunities? Why do some, but not others, try to convert their ideas and dreams into business ventures? And why, ultimately, are some entrepreneurs successful and others not?Efforts to answer these questions in terms of the personal characteristics of entrepreneurs generally yielded disappointing results: contrary to what informal observation suggests, entrepreneurs do not appear to differ greatly from nonentrepreneurs with respect to various aspects of personality. As a result, a growing number of researchers have recently adopted a different approach—one emphasizing the role of cognitive processes in entrepreneurship. This perspective suggests that valuable insights into the questions posed above may be obtained through careful comparison of the cognitive processes of entrepreneurs and other persons.Whereas informative research has already been conducted within this framework, the present study seeks to expand this developing perspective by building additional conceptual bridges between entrepreneurship research and the large, extant literature on human cognition. Basic research on human cognition suggests that our cognitive processes are far from totally rational; in fact, our thinking is often influenced by a number of sources of potential bias and error. It is suggested here that entrepreneurs often work in situations and under conditions that would be expected to maximize the impact of such factors. Specifically, they face situations that tend to overload their information-processing capacity and are characterized by high levels of uncertainty, novelty, emotion, and time pressure. Together, these factors may increase entrepreneurs’ susceptibility to a number of cognitive biases.Several cognitive mechanisms that may exert such effects and that have not previously been considered in detail in the literature on entrepreneurship are examined. These include: counterfactual thinking—the effects of imagining what might have been; affect infusion—the influence of current affective states on decisions and judgments; attributional style—tendencies by individuals to attribute various outcomes to either internal or external causes; the planning fallacy—strong tendencies to underestimate the amount of time needed to complete a given project or the amount of work that can be achieved in a given time; and self-justification—the tendency to justify previous decisions even if they result in negative outcomes. Each mechanism is described, and specific hypotheses concerning its potential impact on the thinking of entrepreneurs are proposed.A final section of the article touches briefly on methods for testing hypotheses concerning these mechanisms and explores the implications of this cognitive perspective for future entrepreneurship research. This section emphasizes the fact that a cognitive perspective can provide researchers in the field with several new conceptual tools and may also facilitate the development of practical procedures for assisting entrepreneurs.     

Using structural topic modelling to predict users’ sentiment towards intelligent personal agents. An application for Amazon’s echo and Google Home

Despite growing levels of usage of Intelligent Personal Assistants (hereinafter, IPA), their in-home usage has not been studied in depth by scholars. To increase our understanding of user interactions with IPA, our research created a theoretical framework rooted in technology acceptance models and Uses and Gratification Theory. Our empirical method designs an ambitious analysis of natural and non-structured narratives (user-generated content) on Amazon’s Echo and Google Home. And to identify key aspects that differentially influence the evaluation of IPA our method employs machine-learning algorithms based on text summarisation, structural topic modelling and cluster analysis, sentiment analysis, and XGBoost regression, among other approaches. Our results reveal that (hedonic and utilitarian) benefits gratification, social influence and facilitating conditions have a direct impact on the users’ sentiment for IPA. To sum up, designers and managers should recognise the challenge of increasing the customer satisfaction of current and potential users by adjusting doubtful users’ technical skills and the (hedonic, cognitive, and social) benefits and functionalities of IPA to avoid boredom after a short lapse of time. Finally, the discussion section outlines future lines of research and theoretical and managerial implications.