From Fatwallet to eBay: An investigation of online deal-forums and sales promotions

Sales promotions are an important part of retail advertising strategy. Traditionally, research on sales promotions has generally assumed that the buyers are end consumers who do not engage in reselling, in large part due to high transaction costs. However, the recent Internet related technologies have dramatically lowered the cost of transferring goods between consumers, leading to relative ease of reselling activity amongst individual consumers. Little is known about the impact of this phenomenon on retailer's sales promotion strategy. In this research we investigate the reselling activity in online auctions for products that active deal seekers can obtain at deeply discounted prices from retailers. We further investigate the role of deal-forums in the resale process. Data is collected from an online deal-forum (http://www.fatwallet.com/) and eBay to test various reselling-related hypotheses. The results show that there is a significant abnormal increase in the number of newly posted auctions of a product after the deal information of this product is posted on deal-forum website. We also find that there is a significant price incentive for individuals to resell. The implications for sales promotion research and practice are discussed.     

The return to advertising expenditure

Every year companies spend billions of dollars on advertising in an effort to induce consumers to purchase their goods. Yet, unlike almost any other investment that a company makes, management's advertising allocation decision is made with little, if any, substantive information on the return received from that investment. This research presents a methodology for determining the monetary gains from advertising and provides an estimate of the return to advertising investment for a sample of firms. Substantial gains exist for firms from advertising. This effect is seen to vary by type of industry and is strongly related to other positive strategic decisions of the firm.The authors would like to thank Deborah Heisley, two anonymous referees, and the participants at the 1991 Marketing Science Conference for their comments and suggestions. We thank Sylvia Graham, Camilo Riano, Patrick Grant, Patricia James, and Cordy Cates for assistance in gathering the information for this paper.     

Creativity identity in Colombia: the advertising creatives’ perspective

ABSTRACT

This exploratory paper analyses the way in which context influences advertising creativity practices. To establish the role of context, this paper utilized both Social Identity theory and Systems Model of Creativity. Twenty four in-depth interviews with top creative directors of the main advertising agencies in Colombia (Latin America) were collected. Findings suggest the Colombian creative identity is under construction. This identity is influenced by the broader Colombian social context including the unique business characteristics of the country's communications industry, the level of economic hardship experienced by the population, and the actual social conflict lived situation. These findings extend the Systems Model of Creativity to include social hardships and industry level characteristics. Several practical implications not only in relation to Colombia, but also the broader global advertising industry are presented.     

The Influence of High-/Low-Context Culture on Perceived Ad Complexity and Liking

ABSTRACT

According to Hall's context theory, people from different cultures may react differently to complex messages. The current study is the first empirical examination of context theory's role on message comprehension and appreciation. In a comparative survey-based study (N = 289), Belgian and Dutch participants judged 12 complex product advertisements with visual metaphors. As expected by context theory, perceived complexity was lower for Belgian (a higher-context culture) than for Dutch participants (a lower-context culture), and participants' personal context culture score fully accounted for this difference. Similarly, ad liking was higher for Belgian than for Dutch participants, and again, this difference was explained by context score.     

Nuevo Latino: Rebranding Latin American Cuisine

Nuevo Latino Cuisine invites diners to experience the vertigo of consuming a reinvented version of traditional Latin American food while enjoying a cosmopolitan atmosphere at sophisticated restaurants. Using “border thinking” and critical ethnography, this paper discusses how the restaurant industry in the US reproduces colonial desire by aestheticizing and commodifying traditional meals. This article assesses the rebranding of Latin American Cuisine as a fashionable consumer trend where identity, class, and cultural representations are resignified through consumption practices. The central issue guiding this research consists of identifying the rationales and strategies used by the restaurant industry when rebranding Latin American cuisine. Understanding Nuevo Latino at the intersection of hybrid cultural forms, cosmopolitanism, and the power structures of market forces in late capitalistic societies is fundamental to assessing the colonization of lifeworlds by the economic system, which imposes an alternative process of subjection and subjectivation through consumption.     

An epistemological odyssey: towards social construction of the advertising process

This paper seeks to describe the outcome of an intellectual journey from cognitivism to mutualism in advertising research. It frames this journey with a metaphor from Greek mythology as a means of foregrounding some of the major issues the journey entailed. In particular, a focus on myths, narratives and storytelling in discourse reminds us that the subtlety of meaning making in twentieth-century advertising may not be penetrated by the quasi-scientific myths we live by today. The paper attempts to elucidate a social constructionist approach in advertising research, locate it as a legitimate development in marketing theory, hint at aspects of the trajectory it took as a personal intellectual journey and, finally, illustrate some meta-theoretical research implications through reference to a research project which investigated the intra-agency advertising process.     

Effects of advertising-evoked vicarious nostalgia on brand heritage

Why do people feel emotional attachment to events occurring before they were born? This paper examines ad-evoked vicarious nostalgia‐induced longing for a time period that an individual did not live through. Vicarious nostalgia impacts brand heritage and leads to stronger brand attachment. Qualitative research (Study 1) and a literature review identify two vicarious nostalgia dimensions—fantasies about past eras and emotions. Initial quantitative research (Study 2) refines these measures, while subsequent quantitative research (Study 3) relates vicarious nostalgia to both antecedents (alienation, fantasy proneness, and nostalgia proneness) and consequences (brand heritage and brand attachment). Self-referencing moderates the relationship between nostalgia proneness and fantasies, while vicarious nostalgia partially mediates the relationship between nostalgia proneness and brand heritage. Both individual propensities (nostalgia proneness) and advertising-evoked vicarious nostalgia enhance or build brand heritage perceptions.     

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 Consumer and Advertising Regulation in the Television without Frontiers and Audiovisual Media Services Directives

This paper aims to assess the balance between the commercial interests of broadcaster and advertiser and the interests of the viewer, as well as programme makers. The new Audiovisual Media Services Directive (AVMSD) seeks to clarify and to simplify whilst maintaining the traditional European broadcasting landscape. The recurrent theme of the debate about legislative revision has been based in the vocabulary of consumer choice empowered by technology. The use of this vocabulary then leads to assumptions about the ability of the consumer to make choices. Insofar as those choices existed, they have been limited by developments in the AVMSD and in the broadcasting environment. Despite the claims of the AVMSD about viewer choice, it seems likely that the viewer will have no choice whether to receive commercial communications or not.

Optimal generic and brand advertising efforts in a decentralized supply chain considering customer surplus

While the previous researches of advertising efforts decisions focus on only the firms' profit target, no literature introduces corporation social responsibility target into advertising efforts decisions of a supply chain (SC). To fill this gap, we consider a two-stage SC with a manufacturer and a retailer where the SC members consider the customer surplus. Both the retailer and the manufacturer can invest in generic advertising efforts to influence and increase the products' sales volumes. This paper investigates the following four scenarios: (1) The retailer cares the customer surplus (Model I); (2) The manufacturer cares the customer surplus (Model II); (3) Both the retailer and the manufacturer care the customer surplus (Model III); (4) We then extend the model III to the case that the manufacturer invests in both the generic and brand advertising efforts (Model IV). The objective of this paper is to determine the optimal retail price, the optimal advertising efforts, and the optimal profits of SC members, and find the influence of customer concern level on the SC performance. Finally, numerical examples are conducted to investigate the influence of the customer concern levels of the retailer or the manufacturer on the profits of the SC members and the entire SC. We also study the joint impacts of the customer concern levels of the retailer and the manufacturer on the SC performance. We find that the SC obtains the highest profits when the retailer's customer concern level and the manufacturer's customer concern level are relatively high, and the best cooperative strategy for the retailer and the manufacturer is that they improve customer concern level simultaneously.