Advertising non-premium products as if they were premium: The impact of advertising up on advertising elasticity and brand equity

Non-premium brands occasionally emulate their premium counterparts by using ads that emphasize premium characteristics such as superior performance and exclusivity. We define this practice as “advertising up” and develop hypotheses about its short- and long-term impact on advertising elasticity and brand equity respectively. We test the hypotheses in two large-scale empirical studies using a comprehensive dataset from the automotive industry that includes, among others, the content of 2317 television ads broadcast over a period of 45?months. The results indicate that advertising up increases (decreases) short-term advertising elasticity for non-premium products with a low (high) market share. The results also show that an intensive use of advertising up over time leads to long-term improvements (reductions) in brand equity for expensive (cheap) non-premium products. Furthermore, an inconsistent use of advertising up leads to reductions in brand equity. The results imply that managers of non-premium products with a low market share can use advertising up to increase advertising effectiveness in the short run. However, advertising up will only generate long-term improvements in brand equity for expensive non-premium products. Finally, to avoid long-term reductions in brand equity, advertising up should be consistently used over time.     

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.     

中国高校学生对广告的认知、态度与使用

本文系“全国高校学生广告素养研究”项目系列研究成果之一,主要报告我们在大学生广告接触状况、广告卷入度状况、广告相关经历和广告满意度状况等方面的实证研究发现,从行为层面和心理层面,探讨中国高校学生对广告的认知、态度和使用问题,并总结在后续研究大学生广告素养特征和开展高校广告素养教育时应注意的问题。     

中日两国产业内贸易的实证研究

本文对中日双边贸易中制成品产业内贸易的发展现状、特征以及影响因素进行了实证研究,发现随着中日双边贸易中资本和技术密集型产品比重的提高,制成品产业内贸易比重也有所提高;其中,机械和运输设备产业内贸易所占比重最高;垂直差异化产品产业内贸易是中日制成品产业内贸易的主要形式;日本对华直接投资活动活跃、跨国公司国际一体化生产体系的构筑及其产业内投资的发展、中国持续经济增长引起的市场容量扩大、加工贸易的快速发展、产品差异化发展以及便利的地理区位因素均有利于促进双边产业内贸易的发展,规模经济和贸易壁垒因素对其则尚存消极影响。     

Dimensionality of advertising attitudes: cross-national insights

A consensus emerging from writings about attitudes towards advertising in general is that such attitudes consist of two dimensions: the social and economic effects. However, as is the case with other marketing concepts and propositions, the findings pertaining to the structure of advertising attitudes are primarily based on American research. This study investigates the dimensionality of advertising attitudes in a non-US setting. The results obtained from a survey of Saudi adult consumers suggest that advertising attitudes do indeed decompose into social and economic effects dimensions as espoused in the US-based literature. The measures developed to capture the two dimensions demonstrate satisfactory internal consistency reliability and pass the tests for convergent, discriminant and concurrent validity. The implications of the findings are discussed and suggestions for future research are provided.     

Dominant Cultural Values

SUMMARY

This study expands on previous work in exploring dominant cultural values portrayed in print magazine advertisements in the United States of America (U.S.) and India across and within product categories. A modified version of Cheng and Schweitzer's (1996) coding framework is used for the study. The differences and similarities in the observed frequencies of the dominant cultural values portrayed in the print magazine advertisements are discussed. The analysis shows a commonality of the dominant values frequently portrayed in the magazine advertisements of both countries although statistically significant differences in their frequency of occurrence are also present for several of the observed values both across and within product categories. The results are consistent with those of researchers advocating a middle-of-the-road approach in the standardization versus adaptation debate of advertising messages. Advertising campaigns in each country should be assessed carefully in terms of target market, cultural and environmental factors, and also upon the nature of the product.     

Remanufacturing Marketing Strategies and Developing Countries

Remanufacturing is a means of production which systematically restores existing equipment to like-new condition. It offers an ecologically sound and economical means of production which offers LDCs a host of benefits. Distinct from mere ad hoc repairing, remanufacturing couples the benefits of employing cheap, used machines, with an efficient means of production. Most of the existing literature on remanufacturing is technical and production orientated; such research is reviewed. In addition, an array of marketing and distribution issues are analyzed. Since most failures of remanufacturing stem from marketing problems, this discussion is especially useful to policy makers and development specialists. If thoughtfully employed, remanufacturing offers LDCs greater self-sufficiency using relatively cheap "light" industry manned by unskilled and semi-skilled labor.     

The effects of fine-print disclosure type and involvement on brand attitude formation

This study explores the information processing tendencies of individuals exposed to advertisements containing fine-print disclosure footnotes. Results indicate that individuals have a lower recall of disclosure footnotes than to the message points contained in the body of the advertisement, though involvement with the advertisement tends to improve recall of disclosure points. In addition, the study tests a model of attitude formation, finding that the type of disclosure (restrictive versus informative) and advertisement involvement interact to affect the means by which brand attitudes are formed. Theoretical and practical implications for the findings are discussed.     

基于市场良性发展理念的广告监管创新模式——以深圳市市场监督管理局广告监测中心为例

广告市场发展的不规范性使得政府的广告监管工作成为必然。广告监管的理念应以促进广告行业良性、健康发展为导向,在整体、动态、开放的监管方式下创新监管模式,客观公正地为广告主、广告经营者、广告发布者以及受众服务。     

中国广告创意批评之现状分析

通过对近八年来我国广告创意批评现状的梳理,归纳批评的内容、批评的方法,以及批评者的素质和特点,发现并总结出广告创意批评存在的问题。     

Verti-zontal differentiation in export markets

Many trade models of monopolistic competition identify cost efficiency as the main determinant of firm performance in export markets. To date, the analysis of demand factors has received much less attention. We propose a new model where consumer preferences are asymmetric across varieties and heterogeneous across countries. The model generates new predictions and allows for an identification of horizontal differentiation (taste) clearly distinguished from vertical differentiation (quality). Data patterns observed in Belgian firm–product level exports by destination are congruent with the predictions and seem to warrant a richer modelling of consumer demand.     

中国广告产业集群化发展的战略选择与制度审视

本文运用产业集群理论,阐述了中国广告产业集群化发展的现实必需及其战略意义。文章在审视中国广告产业现状的基础上,指出中国广告公司要实现对广告业发达国家的超越,必须创新广告产业发展路径,走专业化-专门化-集群化-规模化的产业发展之路,专业化和专门化是集群化发展的基础和保障,规模化是集群化发展的必然走向,而公共政策的制度供给则是广告产业集群化发展的迫切需求。     

围绕本质“立法” 坚持权威“执法”——浅析英国误导性广告的立法与司法实践

作为世界上广告监管最为规范的国家,英国的广告监管经验非常值得借鉴。在英国,广告监管主要通过行业自律机构实施,包括对误导性广告的监管。本文通过对英国误导性广告的现状、＂立法＂和＂执法＂等进行初步的分析和探讨,希望能对中国误导性广告监管有所借鉴。     

A comparative analysis of advertising characteristics,strategy, style and form in global and national brand advertising

This paper considers the differences and similarities between national brand and global brand advertising through the use of three analytical frameworks – creative strategies, advertising styles and advertising form. It seeks to identify any differences between national and global brand advertising in terms of creative strategy, advertising style and advertising form. The structural elements of advertisements, such as the length of a commercial, number of camera shots and number or type of characters present, are also examined for a total of 551 television advertisements. A number of significant differences between the advertising of global and national brands have been recorded. In addition, the study identifies a discriminant function, which successfully predicts the advertising strategies, styles and formats for global brands.     

中国高校广告类本科教学产业细分定位论

企业（广告主）的专业化经营和广告代理制的产业细分代理方向发展是广告教学定位的客观需要,所在学校长期形成的各具特色和优势的学科背景是广告教学定位的内在依托。定位的有效性取决于以专业教育为重心的观念,正确解读《高等教育法》关于学业标准的条款,建立顺应经济社会发展的教育教学理念,不折不扣地兑现各高校招生简章中专业业务培养目标,才能适应创意产业发展与中国广告产业升级的需要。     

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.