The Devil might wear Prada,but Narcissus wears counterfeit Gucci! How social adjustive functions influence counterfeit luxury purchases

People buy counterfeit luxury goods for a range of reasons, including status and belonging. Previous research has shown these stem from an individual's value-expressive or social-adjustive attitudes. However, there appears to be limited research identifying a clear causal relationship between these and intention to purchase counterfeit goods, or how these attitude functions might be used to inhibit purchase of counterfeit luxury products. Using a mixed (survey/experiment) design, in two studies this research demonstrates an individual's social adjustive function has a positive influence on purchase intent for counterfeit luxury goods. However, the use of value expressive ad appeals can limit this effect on consumer decision making. The findings also demonstrate the existence of contingent effects across different levels of product involvement and product knowledge. The contingent effects help better understand the inconsistent findings in the literature regarding the influence of value-expressive and social-adjustive functions on counterfeit purchase intention, and shed light on the interplay among these variables.     

Feelings of uncertainty and powerlessness from Covid-19: Implications for advertising appeals in the restaurant industry

Are rational (emotional) advertising appeals more congruent with healthy (indulgent) products? Prior research shows inconsistent results on the congruency effect between appeal type and product category. This study sheds light on this topic by examining the moderating effect of two psychological states (i.e., feelings of uncertainty and powerlessness) caused by Covid-19 on the relative effectiveness of rational vs. emotional appeals in the context of food advertisements. The results suggest that people with low levels of uncertainty respond more favorably to rational (vs. emotional) appeals of a healthy food item, and this effect is attenuated among people with high levels of uncertainty. On the other hand, powerful people find emotional (vs. rational) appeals of an indulgent food item more attractive, and this effect is attenuated among powerless people. Theoretical and managerial implications are discussed.     

“Unprecedented,” “extraordinary,” and “we're all in this together”: Does advertising really need to be so tedious in challenging times?

As government-mandated lockdowns and steep declines in trade set in because of the COVID-19 pandemic, a common theme became apparent in the advertising of the time: It was all the same. Regardless of the product category or brand personality, many ads were remarkably similar. They began with melancholy music, voiceovers reminding the audience that the brand is here for them, and referred to these times as “unprecedented” and “extraordinary.” Ads reassured viewers that “together, we can get through this.” In this installment of Marketing & Technology, we articulate the problem of advertising sameness and explore how and why it likely arises during a time of crisis. We then discuss why advertising uniformity is a problem and present a series of strategic, media, and creative considerations—taking into account the constraints of a crisis— to help marketing professionals produce more effective advertising in the context of a disaster.     

Advertising as an Entry Deterrent: Evidence from UK firms

Advertising is widely considered to be an important isolating mechanism through which firms may defend an established competitive advantage. However, there is relatively little empirical evidence on the extent of the strategic use of advertising either to deter or in response to entry. In this paper, I report on a study of the advertising practices of 843 medium‐sized and large UK‐based firms. Nearly one‐quarter of all the advertisers surveyed state that they attribute importance to entry deterrence as an aim of their advertising. Further, one in five managers of advertising firms state that they would increase advertising expenditure if a new rival company appeared in their market. It is also apparent that there is a strong correlation between the perceived importance of advertising as an entry‐deterring tool and the intensity of advertising spending. Multivariate modelling provides confirmation that the existence of a sheltered market position, and the profitability that typically accompanies this, provides a statistically significant determinant of the decision to use advertising as a strategic entry‐deterring weapon.     

The output and profit contribution of information technology and advertising investments in banks

This paper examines the contribution of investments in Information Technology (IT) and in advertising to the output and profits of Spanish banks, in the period 1983–2003. We find that the growth in the stock of IT capital explains one third of output growth of banks, and that an additional investment in IT of one million euros may be substituted for twenty-five workers. The paper also finds that advertising investments increase the demand for bank services with an elasticity of 0.22 for deposits and 0.11 for loans. For all the assets considered, the null hypothesis that banks use the profit-maximizing amount of services per period cannot be rejected with the data.     

The paradox of exclusion and multiculturalism in postcolonial identity†

This article analyzes the discriminatory representation of ethnic minorities in Hong Kong advertisements through a semiotic analysis of a TV commercial for an insurance company. The ridiculing of a foreign domestic helper through a colorist representation is inscribed in an ethnographic inquiry that explores how the representation of the foreign “other” in terms of dark skin color serves to project a common conceptualization of Hongkongers’ own identity. The discussion explores the paradoxical understanding of Hong Kong as a multicultural and global city, in contrast with the apparently homogenous Chinese mainland, while excluding from the concept of “multiculturalism,” non-Chinese ethnicities through discrimination based on skin color. Thus, the role the TV commercial plays is to shape and reinforce this paradox, perpetuating the idea of the Hong Kong identity as Chinese, but multicultural at the same time.^?? An early version of this paper was presented at the Kern Conference in Visual Communication, Rochester, New York, April 2014.     

ADVERTISING'S ELUSIVE ECONOMIC RATIONALE: PUBLIC POLICY AND TAXATION

Advertising and its effects have been debated for well over a century. In the last few decades a generally sceptical view of the benefits of advertising has been overturned by a series of academic advances in economics that detail a variety of ways in which advertising may affect the economy and society. This academic work has however been paralleled by a growing popular and political opposition to advertising and its social effects. In this paper, the positive economic case for advertising is challenged by an assessment of the main channels of its influence and by a review of the associated empirical findings on its economic and wider impact. A policy response of limiting the tax deductibility of business advertising is explored.     

文化差异及其对广告诉求的影响:基于中美比较的视角(英文)

全球营销获得成功的首要条件是理解不同文化之间的价值观的相似性和差异性。由于缺乏以研究为基础获得的信息,这一任务对于试图与中国做生意的公司而言尤为艰巨。本研究采用霍夫斯塔德文化模型中的最新价值观来比较中美之间波莱广告诉求的有效性。在以文化维度为基础预测有效诉求的20个假设中,有9个得到了支持。另外一个假设也非常显著,但是与预想的方向正好相反。这些研究发现意味着,采用霍夫斯塔德文化维度作为有效广告诉求的唯一预测指标是不明智的。霍夫斯塔德维度或许缺乏可以有效预测各种广告诉求成功度所必需的结构。此外,广告诉求的有效性还可能由于其他因素(例如,年龄、社会趋势、政治法律环境及产品用法)而有所调整。     

Advertisers’ perceptions regarding the ethical appropriateness of new advertising formats aimed at minors

Although they are key stakeholders, advertisers’ views on the usage of novel (integrated and/or interactive) advertising toward minors has remained largely unexplored in academic research. This study aims to fill this gap by examining advertising professionals’ opinions about the ethical appropriateness of using novel advertising formats aimed at children and teenagers, how to advance advertising literacy in minors, and their views of practices that are potentially privacy-invading, by means of both a quantitative online survey and qualitative in-depth interviews with Belgian advertising professionals. Results show that advertisers perceive that from 12 years onward, minors are capable to understand novel advertising formats and it is ethically justified to use them. Remarkably, advertisers would inform minors already from the age of 10 years onward about the commercial intention behind new advertising formats. Advertisers have strict opinions about collecting information online from minors. They advocate a combination of laws and self-regulation and governmental and educational campaigns to raise awareness and develop advertising literacy.     

Competition and commercial media bias

This paper reviews the empirical evidence on commercial media bias (i.e., advertisers influence over media accuracy) and then introduces a simple model to summarize the main elements of the theoretical literature. The analysis provides three main policy insights for media regulators: (i) Media regulators should target their monitoring efforts towards news contents upon which advertisers are likely to share similar preferences. (ii) In advertising industries characterized by high correlation in products' qualities, an increase in the degree of competition may translate into a lower accuracy of news reports. (iii) A sufficiently high degree of competition in the market for news drives out commercial media bias.