THE BENEFITS OF STRATEGIC HOMOGENEITY AND STRATEGIC HETEROGENEITY: THEORETICAL AND EMPIRICAL EVIDENCE RESOLVING PAST DIFFERENCES

Past research on the relationship between strategic variety and industry profitability has argued for either high homogeneity or high heterogeneity. In this paper, we review the literature on strategic variety and use it to develop hypotheses suggesting that the relationship between strategic variety and average industry profits is curvilinear. Based on our analysis of 61 industries, we find empirical support for our hypotheses, suggesting that very high levels of heterogeneity or homogeneity are more likely associated with industry profitability, while the industries in our sample displaying moderate levels of strategic variety are most likely to suffer from widespread financial losses.     

Conceptualization and Exploration of Attitude toward Advertising Disclosures and Its Impact on Perceptions of Manipulative Intent

Significant research has been conducted in an effort to understand how varying elements of disclosures (e.g., size, placement, complexity) in advertisements impact consumers' abilities to understand and recall the disclosed message. Although it is important to research the effectiveness of disclosures, advertisers may have additional concerns if the mere presence of a disclosure impacts consumers' perceptions of the company, advertisement, or brand. Little research currently exists examining the notion of consumers' attitudes toward advertising disclosures or how they might impact the effectiveness of the disclosed message, attitude toward a given communication, or overall evaluation of the brand. We introduce the concept of attitude toward advertising disclosures and develop a scale to measure consumers' attitudes toward disclosed messages. The resultant 14‐item, multidimensional scale is then used to demonstrate how attitude toward advertising disclosures plays a moderating role in influencing consumers' perceptions of manipulative intent.