The impact of COVID-19 on consumer evaluation of authentic advertising messages

This study investigates the relationship between the COVID-19 threat and consumer evaluation of a product with authenticity appeals in advertisements. We propose that threatening situations like COVID-19 motivate consumers to lower their uncertainty and increase their preference for products with authentic advertising messages. Because individuals react differently to threatening environments according to their early-life experiences, commonly reflected in childhood socioeconomic status, we examined whether childhood socioeconomic status moderates the relationship between threat and consumer evaluation of authenticity in advertisements. First, secondary data from Google Trends provided empirical support for our predictions. In additional experimental studies, participants evaluated different target products in four studies that either manipulated (Studies 2 and 3) or measured (Studies 4 and 5) COVID-19 threat. Our results provide converging evidence that consumers positively evaluate products with authentic advertising messages under the COVID-19 threat. Consumers' motivation to lower their uncertainty underlies the effect of COVID-19 threat on their evaluation of authentic messages (Study 3). This attempt to reduce uncertainty is more likely to occur for consumers with relatively higher childhood socioeconomic status (Studies 4 and 5). These findings suggest that using authenticity appeals during a pandemic could effectively reduce consumers' perceived uncertainty and generate positive consumer evaluations.     

Learning About Computers: An Analysis of Information Search and Technology Choice

We estimate a dynamic model of how consumers learn about and choose between different brands of personal computers (PCs). To estimate the model, we use a panel data set that contains the search and purchase behavior of a set of consumers who were in the market for a PC. The data includes the information sources visited each period, search durations, as well as measures of price expectations and stated attitudes toward the alternatives during the search process. Our model extends recent work on estimation of Bayesian learning models of consumer choice behavior in environments characterized by uncertainty by estimating a model of active learning—i.e., a model in which consumers make optimal sequential decisions about how much information to gather prior to making a purchase. Also, following the suggestion of Manski (2003), we use our data on price expectations to model consumers’ price expectation process, and, following the suggestion of McFadden (1989a), we incorporate the stated brand quality information into our likelihood function, rather than modeling only revealed preference data.Our analysis sheds light on how consumer forward-looking price expectations and the process of learning about quality influence the consumer choice process. A key finding is that estimates of dynamic price elasticities of demand exceed estimates that ignore the expectations effect by roughly 50%. This occurs because our estimated expectations formation process implies that consumers expect mean reversion in price changes. This enhances the impact of a temporary price cut. Finally, while our work focuses specifically on the PC market, the modeling approach we develop here may be useful for studying a wide range of high-tech, high-involvement durable goods markets where active learning is important.JEL Classification: C15, C33, C35, C42, C51, C52, D83, D84     

Being Accepted or Ostracized: How Social Experience Influences Consumer Responses to Advertisements with Different Regulatory Focus

Social experience (i.e., social inclusion versus exclusion) is an important factor that influences consumer behaviors but has not been adequately examined in advertising research. To fill this gap, we conducted three experiments to investigate how consumers’ social experiences affect their responses to promotion-focused versus prevention-focused advertisements. Our findings indicated that consumers who experienced being included or being ignored responded more favorably to promotion-focused advertisements than prevention-focused advertisements. However, these effects were due to different underlying mechanisms. Consumers who experienced being rejected were indifferent to advertisements’ regulatory focus, but they preferred promotion-focused advertisements once they received a self-esteem boost. These findings are believed to provide meaningful contributions to both advertising research and practice.     

Consumer Regulation Strategies: Attenuating the Effect of Consumer References in a Voting Context

Consumption cues (e.g., brands, money, and advertisements) can have powerful effects on cognition, perception, and behavior, yet how people regulate responses to such cues is not well understood. This is surprising given that consumption cues are increasingly present in nontraditional consumer contexts, such as healthcare, education, and politics. This research develops a measure of two types of consumer regulation strategies, cue‐based and budget‐based (studies 1–4), and demonstrates that these strategies influence how people respond to consumption cues in a political context (study 5). Specifically, in a study involving the 2012 American Presidential Election, priming survey participants as consumers (versus citizens) influenced both voting intentions and self‐reported voting behavior, and the newly developed consumer regulation scale was instrumental in detecting this effect. These findings suggest there may be merit in the escalating debate and concern over referring to voters as consumers.     

How can the word “NEW” evoke consumers' experiences of novelty and interest?

This paper examines the role advertising cues play in inducing subjective perceptions of product novelty and how they can evoke consumer interest toward an advertisement. Specifically, it uses behavioral and psychophysiological measures to: (1) investigate the effect of novelty cues on consumers’ subjective appraisal of novelty; (2) demonstrate that novelty cues may evoke the emotion of interest; and (3) differentiate the effect of the emotion of interest on liking and arousal. Across two experimental studies, we demonstrated that simply adding the word “new” in an advertisement increases behavioral (i.e., viewing duration) and psychophysiological responses (i.e., cardiac activity) of interest. However, the word “new” did not evoke liking and arousal. This suggests that novelty cues in an advertisement will make the consumers perceive the product to be novel and further evoke consumer interest.     

Impact of Advertising Model's Body Size on Perceived Product Quality: Category-Based Induction Approach

Abstract

Thin female models are aggressively employed in advertisements (Slater, Tiggemann, Hawkins, & Werchon, 2012; Wasylkiw, Emms, Meuse, & Poirier, 2009). Previous studies showed that physically attractive advertising are effective because image-transfer occurs between the models and advertised products (e.g., Kamins & Gupta, 1994). Considering that the current standard for physical attractiveness is thinness for women (Gurung & Chrouser, 2007), the effect of thin female spokespersons can be attributed to the image-transfer. To explain the mechanism of image-transfer, the current study employed category-based induction as a theoretical foundation. The results confirmed that consumers evaluated advertised products based on category-based induction. Specifically, consumers classified a thin female model into positive categorization, which was used to evaluate advertised products. The study also investigated the moderating role of various psychographic factors. The results showed that adherence to traditional gender roles and perfectionism interacted with the model's body size, influencing on how consumers evaluated the quality of advertised products.     

Is Your Product Facing the Ad's Center? Facing Direction Affects Processing Fluency and Ad Evaluation

This research investigates a frequently encountered and important decision faced by advertisers: how to face profile images of products in advertisements. Three empirical studies find support for a profile-fluency effect: Profile images of products facing inward (versus outward) toward the center (versus edge) of an ad are easier for consumers to process and result in more positive consumer evaluations. In addition, there is evidence that this effect depends on the shopping goal of the consumer. The results have clear implications for current practices in advertising and offer opportunities for future research.     

Examining Antecedents of Health Insurance Literacy: The Role of Locus of Control,Cognitive Style,and Financial Knowledge

Today's consumer is expected to make health-care decisions that have serious implications for their welfare. However, a major barrier to these decisions is a basic lack of understanding of health insurance. A critical first step is to examine drivers of health insurance literacy and in turn offer interventions that can have a positive impact on consumer welfare. This article explores the relationship between relevant consumer psychographics, financial knowledge, and demographics with health insurance literacy. Results indicate that while demographics play a role, the degree to which consumers believe a situation or event is under their own control (i.e., locus of control), how they process information (i.e., cognitive style), and consumer's financial confidence (i.e., subjective knowledge) is a critical indicator of their health insurance literacy. Cluster analysis reveals three “faces” of health insurance literacy.     

How product aesthetics cues efficacy beliefs of product performance

Aesthetics of package design is an important consideration when consumers make purchase decisions. We argue that this is particularly the case for purchase decision of products in the beauty category. This paper advances current understanding of the role of packaging in product purchase behavior by identifying heuristic cues exhibited in packaging (i.e., that beautiful packaging is more effective at making the consumer more beautiful). Across a pilot field study and four lab studies, we demonstrate that package aesthetics informs inferences of how well the product can perform, which, in turn, drives purchase decisions. Importantly, we show that in the presence of a diagnostic cue such as a brand name, or an explicit promise (e.g. tagline of an advertisement), this effect is attenuated and rendered irrelevant. Further, we show that this effect is rendered ineffective to a category to which beauty is irrelevant. Hence, by signaling product efficacy, the beauty-in-a-bottle heuristic appears to inform purchase decisions.     

Positive versus negative comparison in advertisements: the affect priming perspective

Abstract

Comparison valence is an important element in comparative advertising. In this research, we investigated how comparison valence influences advertising effectiveness and explored the role of affect underlying such effects. The results of two studies consistently confirmed that a positive comparison elicited more favorable ad attitude and brand attitude than a negative comparison and consumers’ affective states accounted for their preference for the positive comparison. Moreover, we found some preliminary evidence suggesting that the preference for a positive message may be more remarkable in comparative advertisements than noncomparative advertisements. However, this proposition needs further validation in future research.     

Positive uncertainty: the benefit of the doubt in advertising

Positive uncertainty refers to uncertainty surrounding an anticipated positive outcome. It provides consumers with the opportunity to imagine and speculate on a product's or experience's potentially positive characteristics. Research has shown that when uncertainty is associated with something positive, consumers may prefer uncertainty to certainty. In a between-subjects experimental design with a large US (n = 446) and Japanese sample (n = 453), the present study demonstrates that positive uncertainty increases consumers’ positive feelings when they evaluate a product, particularly for high-involvement products that allow consumers to imagine and speculate about potentially positive product benefits. Unexpectedly, the study findings are consistent across the two different markets, which vary substantially in terms of consumers’ level of uncertainty avoidance. Specifically, results show that future-framed advertisements are effective in generating positive uncertainty and that positive uncertainty generates positive attitudes, both in countries scoring high (Japan) and low (USA) on uncertainty avoidance.     

Who needs a reason to indulge? Happiness following reason-based indulgent consumption

While consumers and marketers perpetuate the lay theory that indulging with a reason is more pleasurable and makes everyone happier, this research identifies a condition under which indulging without a reason “feels right” and produces a more positive emotional reaction. The authors show that indulging with or without a reason and consumers' trait self-control interact to influence happiness felt following an indulgent purchase. While high self-control consumers are happier when they have a reason to buy indulgent products (e.g., when they can justify the indulgence), low self-control consumers are happier when they do not have a reason to indulge. That is, indulging with a reason is less pleasurable for consumers with low self-control. This effect on happiness has an impact on downstream judgments about the product and yields important implications for consumer welfare as well as marketing managers. Across four studies we show the effect on consumption happiness, examine consequences of the effect, and report evidence for the underlying process.     

Designing multi-channel technologies – the mediating role of risk perceptions

ABSTRACT

The integration of online and offline distribution channels has become a major topic in practice and research. Several studies reveal beneficial outcomes for retailers if consumers use multiple channels. Therefore, many retailers offer multi-channel technologies (MCTs), i.e. click & collect, check & reserve and the availability check, which encourage this behavior. However, research is still sparse on how retailers should design these MCTs to provide the highest usefulness for consumers. Our study thus analyzes the impact of different MCT design characteristics on consumers’ perceived usefulness of these MCTs. Moreover, we examine how consumers’ perceived time and product availability risk mediate these effects. The results show that some MCT design characteristics exhibit the expected positive impacts on consumers’ perceived usefulness of the MCTs, while others seem to be less relevant and even counterproductive. In particular, a certain (vs. unspecified) product pick-up time and a high (vs. low) displayed inventory status lead to a higher perceived usefulness of the MCTs via the two risk dimensions. However, the immediate (vs. delayed) confirmation of product reservations does not have any positive effects. In fact, it even decreases the perceived usefulness of click & collect. These findings provide implications for the design of MCTs.     

Besting the status quo: the effect of abstract versus concrete mindsets on emotional trade-off difficulty and avoidant coping behavior

Building on past emotional trade-off difficulty and construal level research, we investigate the conditions under which consumers engage in avoidant coping behavior to reduce negative emotions that arise from trading off valued attributes (e.g., quality and price). Results from three studies offer evidence that an abstract (vs. concrete) mindset systematically decreases avoidant coping behavior (e.g., the selection of a status quo option) by reducing the intensity of the negative emotion consumers experience. This effect replicates across construal level manipulations and product categories. Thus, in addition to the harmful effects of negative emotions and coping behavior on consumer choice identified in past research, we find that an abstract (vs. concrete) mindset can help consumers make better (i.e., more normative) choices. Together, these findings have implications for marketers of new or unfamiliar products as well as products that are not incumbents or category leaders (i.e., status quo options) when consumers face difficult trade-offs.     

When does electronic word-of-mouth matter? A study of consumer product reviews

Online consumer product reviews, a form of electronic word-of-mouth (eWOM), have attracted increased attention from researchers. This paper examines the persuasiveness of eWOM. Drawing on regulatory focus theory, the authors propose that the consumption goals that consumers associate with the reviewed product moderate the effect of review valence on persuasiveness. Data from lab experiments and actual online retailers suggest that consumers who evaluate products associated with promotion consumption goals perceive positive reviews to be more persuasive than negative ones (i.e., a positivity bias). Conversely, consumers who evaluate products associated with prevention consumption goals perceive negative reviews to be more persuasive than positive ones (i.e., a negativity bias).     

Verticality in product labels and shelves as a metaphorical cue to quality

This study investigates how subtle visual cues related to the design of a product's package (i.e., label position) and the context (i.e., shelf orientation) influence consumer evaluation and behavioral intention. Extending research on metaphorical cues, Study 1 shows that consumers perceive a product as more powerful when the label on the package is placed in a higher (vs. lower) vertical position. Extending the focus from package design to the display context of packages, Study 2 shows that consumer perception of a product's power is similarly enhanced when the package is placed on a shelf that is vertically (vs. horizontally) orientated. Across both studies effects of enhanced power perception extend to positively influence product quality inferences and behavioral intentions. These findings add to current knowledge on metaphorical cues in package design and the package's presentation context and offer insights into the underlying mechanism.     

Inclusive advertising featuring disability on instagram: Effect on consumer well-being,brand engagement,and purchase intention

Should advertisers continue to promote their brands through brand endorsers without considering their diverse characteristics, or should they embrace diversity in advertising? Gender, age, ethnicity, and sexual orientation are some of the aspects of diversity that have been investigated in advertising research, primarily in the context of Western and developed countries. However, it remains underexplored how physical disabilities in influencer advertising on Instagram affect consumer well-being and consumers’ responses toward brands in a non-Western market. Through an experimental design (including both inclusive and non-inclusive samples), this study examined the effects of inclusive advertising (including disabled persons) on consumer well-being (both hedonic and eudaimonic), brand engagement, and purchase intention. Two studies were conducted to test the hypotheses. In Study 1 (shampoo brand case), a data analysis of 260 young Pakistani consumers revealed that inclusive (vs non-inclusive) advertisements enhance both hedonic well-being (HWB) and eudaimonic well-being (EWB), with a stronger effect for EWB. The spillover effects of EWB and HWB indicated a significant influence on brand engagement and purchase intention, whereas the effect of HWB is significant only on brand engagement. The effects of HWB on brand engagement and of EWB on purchase intention showed a greater influence in the case of inclusive advertisements than in traditional non-inclusive advertisements. In Study 2 (clothing brand case), an analysis of 235 respondents revealed that inclusive advertising drives both HWB and EWB, which have a greater influence on brand engagement and purchase intention when individuals are exposed to an inclusive advertisement featuring disabled persons than a non-inclusive one. These studies confirm that inclusive advertisements attract a more diverse customer base in addition to existing customers. These findings offer theoretical and practical insights for advertising and consumer research.     

Celebrity Endorsements in Advertisements and Consumer Perceptions: A Cross-Cultural Study

ABSTRACT

We studied consumer perceptions of celebrity endorsements from a cross-cultural perspective. In empirically examining consumer perception of celebrity endorsement, we used Hofstede's cultural dimensions to develop research propositions and examined these propositions through focus group discussions involving consumers from India and the United States. Findings indicated that specific differences and similarities exist in how consumers across India and the United States perceive celebrity endorsements. There is a positive, although moderate, impact of celebrity endorsements on attention and exposure of consumers. Implications for marketers as well as suggestions for future research are discussed.     

A psychological examination of attachment insecurity,loneliness, and fear of missing out as drivers of retail patronage among emerging adults

Recent consumer literature has shown that attachment insecurity (i.e., anxious, avoidant) enhances individual's motivations for retail shopping. We extend that literature using attachment theory to explain how attachment insecurity, loneliness (i.e., social, emotional), and fear of missing out (FoMO) affect retail patronage. We posit that these three negatively valenced psychosocial conditions generally incline emerging adult consumers toward retail patronage to resolve their relational deficits. Based on results from partial least squares-structural equation modeling (n = 509), we find support for most of our hypotheses. The study presents previously unavailable knowledge about antecedents of FoMO and multiple negative psychosocial drivers of retail patronage. We provide a foundation for future scholarship to examine more broadly how attachment, loneliness, and FoMO impact consumer behavior. Managerial and theoretical implications are also provided.