Consumers’ biased perceptions of the environmental impact of products, and their influence on advertising efficiency

This paper investigates the main perceptual biases developed by consumers regarding the environmental impact of products. It shows that these biases make consumers unable to distinguish between advertisements for highly versus less sustainable products, but that the inclusion of relevant information can increase the efficiency of arguments for true sustainability.

Optimization of Advertising Resources over Time: A Strategic Analysis

AMS subject classification: 90B60, 90B50, 90A80.

The economic approach of advertising and the problem of allocating advertising budgets during a recession

The importance of advertising has changed in many aspects in the last decade, and mainly during the last years of the economic crisis. Economics traditionally did not find advertising a valuable factor until empirical studies demonstrated that advertisement affects consumer perception by means of indicating the quality of the underlying product. Consequently, products that are advertised more frequently, are more likely to be associated with a higher quality. Nevertheless, advertising is a strong tool in competition, which statement is confirmed by the recognition that increasing consumer knowledge contributes to the diffusion of innovation and to the reduction of research and development (R&D) costs. This contribution can be achieved nowadays by consumer interactivity, where companies deliberately rely on the involvement of their consumers. Recently, when companies were confronted to the global economic crisis, brand managers realized that allocating advertising budgets in a recession (considering the actual state of the economic conditions) is a highly important decision factor beside competition, consumer behaviour, trends or industrial conditions. Companies have to realize that their communication budgets are planned substantially in a different way in times of crisis than during an upsurge. Moreover, should a company make the best of maintaining their advertising budgets in recession times, it will indicate more trust towards their consumers and show a more favorable image towards their investors. This study assembles different approaches from the economics of advertising to draw conclusions for the subsequent analyses of advertising in times of a crisis. The main objective with the literature review is to show, that pro-cyclical actions (reducing advertising budgets in times of crisis and overspending during upsurge) of companies can lead to problems of profitability, consumer trust and competitiveness in the long run.

How source credibility and message claims interact in determining advertising effectiveness

Credible endorsers are often used in advertisements. However, there is conflicting evidence on the role source credibility plays in persuasion. Early research found that source credibility affects persuasion when subjects pay attention to the communication. Other research indicates that a credible source enhances persuasion when people do not scrutinize the message claims carefully and thoroughly. This effect is opposite to what was indicated by early research. More recent research indicates that source credibility may affect persuasion when people scrutinize the message claims, but limits this effect to advertisements with certain type of claims (i.e., ambiguous or extreme claims). This dissertation proposes that source credibility might play a broader role during persuasion than suggested by the empirical literature. Source credibility may affect persuasion, at low levels of involvement, by serving as a peripheral cue. It may also affect persuasion, at high involvement, by serving as an argument or biasing elaboration. ^ Each of these possibilities was explored in an experiment using a 3 (source credibility) x 2 (type of claim) x 2 (levels of involvement) full factorial design. The sample consisted of 180 undergraduate students from a major southeastern University. ^ Results indicated that, at high levels of involvement, the credibility of the source affected persuasion. This effect was due to source credibility acting as an argument within the advertisement. This study did not find that source credibility affected persuasion by biasing elaboration, at high involvement, or by serving as a peripheral cue, at low involvement. ^

An investigation into advertising's ability to foster favorable evaluations of brand extensions

Taking a respected brand name and placing it on a new product has become a popular strategy for leveraging the name's equity and goodwill. Current research has indicated that the success of doing so depends in part on the perceived “fit” between the core brand and the extension. When the name is extended to a closely related product category, consumers are very likely to transfer their favorable attitudes toward the core to the extension. However, as the perceived fit declines, this transfer becomes less likely. ^ This dissertation examined whether particular advertising tactics (e.g., using a common endorser or logo for the core and the extension) could enhance perceived fit between the core brand and its extension, thus leading to more favorable attitudes toward the extension than would otherwise occur. The sample was undergraduate students from universities in the southeast. The generating mechanism tested was that the transfer of associations between core brand and extension would enhance the overlap of associations between the core brand and the potential extension. ^ Research questions were analyzed using a 3 (levels of fit) x 3 (treatments) x 2 (replicate) experiment. The data analysis was conducted with repeated measures ANOVA's, UNIVARIATE ANOVA's, UNIVARIATE ANCOVA'S, and planned linear contrasts. ^ The results, except for the hypotheses on fit as a mediator of extension attitude, do not indicate that the presence of an endorser or brand mark closely aligned with the core brand enhanced perceived fit between core brand and extension. ^

7 Day advertising countdown to an Florida International University School of Medicine

Quotes and headlines for FLorida International University 's 7 day advertising countdown to the FLorida International University School of Medicine.

Advertising Legalized Gambling: A Late Bloomer Under the First Amendment

New federal laws and court cases have put a new perspective on the ability of the industry to advertise as it has never been able to do before. With gaming becoming more prevalent, the acceptability of the legal industry is making promotion easier. The author discusses these new influences.

Advertising effects on brand search and preference: Assessing the mediational role of *Aad and *Ab

Most advertising research has focussed at examining effects of advertising on attitudinal responses or brand preference and choice. However, in a natural environment, the time period between advertising exposure and purchase decision is filled with prepurchase search. Prepurchase external search refers to information search from sources other than memory, prior to making a purchase decision. Usually consumers access only a small subset of available information and base their choice decisions on it. Prepurchase search therefore acts as a filter and, the final choice depends critically on the small subset of potential inputs the consumer notes in the environment and integrates into the decision. Previous research has identified a variety of factors that affect consumers' prepurchase search behavior. However, there is little understanding of how specific advertisements designed by marketers impact consumers' prepurchase search. A marketer would like consumers to search information that reflects favorably on his/her brand. Hence, s/he would attempt to influence the brands and attributes on which consumers seek information prior to making a choice. The dissertation investigates the process by which a particular marketer's advertising influences consumers' search on available brands, i.e., the marketer's brand and other competing brands. The dissertation considers a situation where exposure to advertising occurs prior to seeking information from any other source. Hence, the impact of advertising on subsequent search behavior is the topic of interest. The dissertation develops a conceptual model of advertising effects on brand search and conducts two experiments to test the tenets of this model. Specifically, the dissertation demonstrates that attitudinal responses generated by advertising mediate advertising effects on search attitudes and behaviors. The dissertation goes on to examine how attitudinal responses generated by advertising and subsequent effects on search alter brand preference and choice. ^

"You can trust me": An examination of trust -in -the -brand advertising appeals

Using trust-in-the-brand appeals in advertising has been a very common practice However, research has yet to examine the effectiveness of such appeals. Can the use of trust appeals in advertising enhance a product's trustworthiness and help the advertiser gain consumers' trust? Might such appeals lead to more favorable attitudes toward the advertised brand? Given the absence of research that speaks to these questions, this dissertation attempts to fill this void by exploring persuasion outcomes of using trust appeals. Specifically, this research aims to assess whether the use of trust appeals affects persuasion; explicate how such appeals may work; anticipate when an ad containing trust appeals may be more or less effective; and finally conduct and report the results of preliminary empirical tests. ^ A conceptual model is offered in the dissertation describing how trust appeals may affect persuasion outcomes. It is proposed that using trust advertising appeals will result in more trust-related thinking, enhance the perceived trustworthiness of the advertised brand, and finally lead to more favorable brand attitudes and trial intentions. This dissertation also examines the differential effectiveness of alternative trust appeals. Elaborate trust appeals that provide substantiation for trust are expected to perform better than simple trust appeals. An implicit elaborate trust appeal is anticipated to outperform an explicit elaborate appeal. ^ Two experiments were conducted. Including a trust appeal in an ad enhanced the perceived trustworthiness of the advertised brand which, in turn, led to more favorable brand attitudes and greater trial intentions compared to a similar ad without the trust appeal. The results also support the proposed mediating role of perceived trust. The empirical test speaking to the hypothesized differential effect of alternative trust appeals provides support for marketing practitioners' efforts in seeking the most effective use of such appeals. Evidence was obtained in the second study demonstrating that an elaborate trust appeal worked more effectively than a simple trust appeal. Contrary to the expectation, this persuasion advantage held regardless of whether the elaborate appeal was in an explicit form or an implicit form. ^

Business and advertising workshop at NOW conference in Washington, D.C.

General note: Title and date provided by Bettye Lane.

Demonstration against Olivetti because of sexist advertising against women

General note: Title and date provided by Bettye Lane.

Demonstration against Olivetti because of sexist advertising against women

General note: Title and date provided by Bettye Lane.

Poster advertising Women's Rights demonstration

General note: Title and date provided by Freda Leinwand.

Visual pollution: advertising, signage and environmental quality

Book review - Visual pollution: advertising, signage and environmental quality, by Adriana Portella, Farnham, Ashgate, 2014, 316 pp., £70 (hardback).

Health insurance competition in Germany – the role of advertising

In the 1990s, competition among public health insurance funds (‘sickness funds’) was introduced in Germany. As one means of competition, free choice of initial health funds and subsequent switching between them was made available to all insured. Since then, the number of funds has decreased substantially, and funds have had to engage in competitive strategies to remain in the market. In this paper, we want to analyse the funds' advertising activities in the face of the changed competitive environment. This has not been possible to date due to a lack of data. We use two new datasets to get a first insight into the potential effects of competition on funds' advertising strategies; one of the volume and cost of advertisements and one of their contents. Our results suggest that competition has been associated with an increase in the amount of advertising. As to the adverts themselves, we find that there was a decrease in the share of advertisements of a ‘general’ content in favour of advertisements of a more ‘fund-specific’ content. The data therefore indicate that once the market was open to switching of funds by the insured, funds' advertising efforts changed to differentiating their own perceived strengths from those of competitor funds. These observations allow us to draw some tentative conclusions about the relevance of (attempts of) risk selection by health funds via advertisements and about the general success of the pro-competitive legislation.