Interactions and consequences of inertia and switching costs

Purpose: Service research typically relates switching costs to customer loyalty, and portrays them as effective switching deterrents that engender harmful word-of-mouth (WOM). Rather than to customer loyalty, this paper aims to relate switching costs to consumer inertia, and show that while switching costs may result in customer retention, they can engender positive and negative WOM. This depends on whether the inertia stems from satisfaction or indifference. Design/methodology/approach: A mall-intercept survey investigated 518 customers' perceptions of their mobile phone service providers. Structural equation modelling fitted the data to the conceptual model. Findings: Switching costs deterred switching and engendered negative WOM, but only with low-inertia customers. With high-inertia customers, retention and WOM behaviours depended on whether the inertia stemmed from satisfaction or indifference. Satisfied customers with high switching costs tended to stay, gave more positive and less negative WOM. With indifferent customers, switching costs were unrelated to retention or WOM behaviours. Research limitations/implications: While they may be perceived negatively, switching costs can engender PWOM. Hence, research should not consider switching costs alone without considering the context that produces them. Practical implications: Service providers should segment their customers into low-inertia, high-inertia/satisfied and high-inertia/indifferent, and target each segment differently. By converting customers into the high-inertia/satisfied segment, service providers can make the best use of switching costs – not only in the traditional sense as a barrier to defection, but also as a way of generating positive WOM. Originality/value: This study is the first to consider the role of inertia with switching costs, positive WOM, and negative WOM. The findings suggest that past studies portraying switching costs as negative impediments that evoke only negative WOM might be misleading.

Lifting the joint venture veil : liability of related entities for misleading conduct of agents engaged by joint venture partners

At common law, a corporation may be liable vicariously for the conduct of its appointed agents, employees or directors. This generally requires the agent or employee to be acting in the course of his or her agency or employment and, in the case of representations, to have actual or implied authority to make the representations. The circumstances in which a corporation may be liable for the conduct of its agents, employees or directors is broadened under the Australian Consumer Law (ACL) to where one of these parties engages in conduct “on behalf of” the corporation. As the decision in Bennett v Elysium Noosa Pty Ltd (in liq) demonstrates, this may extend to liability for the misleading conduct of a salesperson for the joint venture to parties who are not formal members of the joint venture, but where the joint venture activities are within the course of the entity’s “business, affairs or activities”.

The role of, and key considerations for, advertising campaigns and educational awareness workshops within the work-related road safety context

Australian and international evidence suggests that, in the work-related driving context, road crashes account for a substantial number of occupational incidents. In the attempt to reduce injury and improve safety, organisations may implement an array of strategies and interventions ranging from policy development and implementation, vehicle selection and incident monitoring through to education and awareness-raising. This conceptual paper discusses aspects relating to the latter collection of interventions and, in particular, the role, and some key considerations with respect to the content and dissemination, of advertising campaigns and educational awareness workshops. In relation to advertising campaigns, this paper discusses how some of the overarching principles associated with advertising in the broader general community road safety strategy also apply within the work-related road safety context. Specifically, advertising campaigns/materials should be viewed as a key component within a dedicated organisational approach to road (driver) safety. This dedicated approach would need to comprise of a number, and varied array, of strategies. In addition, the content of, and medium/s (e.g., posters) by which to deliver such advertising campaigns, cannot be addressed by a one-size-fits all approach but, rather, requires careful consideration of the needs as well as characteristics of specific organisations and their driver fleet. The paper provides a summary of some key considerations when devising an advertising campaign, including the nature of campaign/message content as well as the processes by which to devise and refine such content. In relation to driver education awareness workshops, this paper outlines the key considerations for delivering a series of workshops specifically aimed at occupational driving within the organisational context. A case study approach will be utilised to demonstrate the manner in which educational awareness workshops can compliment successful advertising campaigns promoting safer work related driving through better risk management practice. Research underpinning the development of driver behaviour modification tools incorporated within the workshops will also be discussed along with the mechanisms utilised to encourage improvements in driver monitoring and behaviour. In an effort to assist organisations with their continual search for cost-effective approaches which may, ultimately, contribute to improvements in driver behaviour and safety, the current paper offers some clear and practical suggestions in relation to the development and dissemination of two types of interventions, advertising campaigns and education awareness workshops.

Sleeping Beauty : global advertising self regulation awakens

The system of self regulation of advertising in mass-media was a dream scenario. If stakeholders complained and the advertisement was deemed offensive by an expert panel, it was an easy matter to withdraw the advertisement from mass media and from public attention. This was done locally, according to the cultural values and aesthetics of the population and the mandate of the self regulation board. To advertising regulators, the internet became their worst nightmare. The system of self regulation was no longer closed, and could be circumvented by placing the offending advertisements online. The system of self regulation was also no longer local, but global. All internet users had access to the same advertisements, regardless of cultural considerations. The awakening of global advertising self regulation is something that demands discussion. It is of value to all conference goers of AAA 2010 Europe, as it affects all advertising academics and all stakeholders in the advertising process. As the leading advertising body seeking to bring global advertising issues to a new venue in Europe, the AAA 2010 European Conference seems ripe for a special session on advertising self regulation. This is especially true as the panel contributes a European, US and Asia-Pacific viewpoint.

Like? Advertising practitioners views of social media as an advertising research tool

Given that both academics and marketers are dissatisfied with the current state of advertising research (Kerr and Schultz, 2010; Neff, 2011), the objective of this exploratory paper is to determine the position of world-leading advertising professionals on the use of social media to test, track and evaluate campaigns. Using Delphi methodology, an international panel of Cannes Gold Lion winners acknowledged that social media research has both strengths and weaknesses, the same as any research. Its strengths are its intimacy and spontaneity, bringing the brand and consumer closer. The real risk is the loss of control in this research environment.

Advertising and promotion : an integrated marketing communications perspective

This text explores the area of advertising and promotion practice. It shows how real organisations coordinate the various elements of the promotional mix with other marketing activities."--Provided by publisher

How much is that data in the window? Advertising your research data with QUT Library

Queensland University of Technology (QUT) Library offers a range of resources and services to researchers as part of their research support portfolio. This poster will present key features of two of the data management services offered by research support staff at QUT Library. The first service is QUT Research Data Finder (RDF), a product of the Australian National Data Service (ANDS) funded Metadata Stores project. RDF is a data registry (metadata repository) that aims to publicise datasets that are research outputs arising from completed QUT research projects. The second is a software and code registry, which is currently under development with the sole purpose of improving discovery of source code and software as QUT research outputs. RESEARCH DATA FINDER As an integrated metadata repository, Research Data Finder aligns with institutional sources of truth, such as QUT’s research administration system, ResearchMaster, as well as QUT’s Academic Profiles system to provide high quality data descriptions that increase awareness of, and access to, shareable research data. The repository and its workflows are designed to foster better data management practices, enhance opportunities for collaboration and research, promote cross-disciplinary research and maximise the impact of existing research data sets. SOFTWARE AND CODE REGISTRY The QUT Library software and code registry project stems from concerns amongst researchers with regards to development activities, storage, accessibility, discoverability and impact, sharing, copyright and IP ownership of software and code. As a result, the Library is developing a registry for code and software research outputs, which will use existing Research Data Finder architecture. The underpinning software for both registries is VIVO, open source software developed by Cornell University. The registry will use the Research Data Finder service instance of VIVO and will include a searchable interface, links to code/software locations and metadata feeds to Research Data Australia. Key benefits of the project include:improving the discoverability and reuse of QUT researchers’ code and software amongst QUT and the QUT research community; increasing the profile of QUT research outputs on a national level by providing a metadata feed to Research Data Australia, and; improving the metrics for access and reuse of code and software in the repository.

Humorous health messages : "a fresh approach" for road safety advertising campaigns?

Theoretical Background and research questions/hypothesis: Recently, throughout Australasia, humorous appeals have become implemented increasingly in health advertising despite limited evidence regarding the persuasiveness of different types of humour. Of those studies available which have examined the persuasiveness of humorous messages, the type of humour is often not defined so it is unclear what type of humour is being examined. Speck’s (1991) typology includes five types of humour; comic wit, sentimental humour, satire, sentimental comedy, and full comedy. Each type of humour is based on one or more humour generation processes; namely, incongruity-resolution, disparagement humour, and arousal-safety. It has been acknowledged that more research is needed to determine the relative persuasiveness of these different types of humour and to identify those types which may be most effective for health advertising. The current research explored individuals’ thoughts about, and their responses to some different types of, humorous messages addressing the serious health topic of road safety. Methods: A preliminary qualitative, study was conducted involving discussions with licensed drivers (N = 18) regarding their thoughts and feelings about humorous road safety messages in general as well as in response to some (5 in total) pre-existing advertisements. Men (n = 10) and women of younger and older age groups (17-24 or 25+ years) participated in one of six discussions. Participants were recruited from an existing community-based database held by the authors’ Research Centre or were approached directly on the university campus. Ethical approval was gained for the study. Each participant was offered $AUD40. A semi-structured interview schedule guided the discussion (e.g., was it humorous?, would this ad influence you?). Audio-recordings of the discussions were professionally transcribed and the transcripts were analysed using thematic analysis. Results: The findings revealed that, irrespective of age and gender, humour that was clever, incorporated something unexpected and contrasting with the everyday, was a preferred and relevant approach, thus aligning with incongruity-based theories of humour generation and humour types, such as comic wit and satire. As a persuasive function, humorous messages were considered likely to be talked about (and relatively more so than traditional fear-based approaches). Participants also felt that humorous messages would need to be used cautiously as humour that was considered inappropriate and/or associated with serious occurrences, such as a crash, would be unlikely to persuade. Conclusions: The findings highlight some of the potential benefits of using humour, such as increasing the extent to which an advertisement is talked about as well as the types of humour which may be effective in this context. Implications for research and/or practice: While this research has provided important insight, future research which quantitatively assesses the persuasive effects of different types of humorous road safety messages within a larger, representative sample is needed. This current study has highlighted some humorous approaches which may hold persuasive promise in encouraging individuals to adopt safer attitudes and behaviours not only on the road, but in relation to serious health issues more broadly.

Misleading and deceptive conduct at an auction

An unusual factual situation recently arose for consideration by Lindsay J of the Federal Circuit Court. In Carter v Delgrove Holdings Pty Ltd [2013] FCCA 783, an application was brought by the owners of a residential property in Western Australia, the Carters, for damages for misleading or deceptive conduct under s 18 of the Australian Consumer Law (“ACL”) and for damages for breach of contract arising from an auction of their house. Delgrove Holdings Pty Ltd was a trustee of a family trust with Mr Ilahi being a director and shareholder of the company as well as a beneficiary under the family trust. It was established that Delgrove Holdings Pty Ltd engaged in the business of property acquisition for the purposes of generating rental income...

Regulating integrated advertising

This chapter approaches integrated advertising as a practice that is continuous with advertising history, rather than a phenomenon associated with new technologies. Competition for technology-enabled audiences in expanding media and entertainment markets is nonetheless an important factor in the turn to integrated advertising and marketing strategies in recent years. While integrated advertising provides solutions for advertisers, it is problematic for media consumers because it is not always distinguishable from surrounding program content and clearly identifiable as advertising. It creates opportunities for advertisers to fly below the radar of citizen and consumer awareness of commercial and political influences in media content, and for this reason has been constrained by regulation. Media regulators have come to play an important role in striking a balance between public and private interests in commercial media by setting and adjudicating the limits of integrated advertising practices. This chapter looks at how broadcasting regulators have responded to the challenges of regulating integrated advertising in commercial radio in three different territories (United States, United Kingdom and Australia). It draws attention to the ways in which integrated advertising simultaneously drives innovation in media genres and forms, as well as de-regulation of the influence exercised by advertisers in commercial media content.

Faking it : how to kill a business through astroturfing on social media

There is no doubt about it the practice of astroturfing is lazy, misleading and potentially illegal public relations (PR). But on social media, astroturfing is not just lazy and misleading, it can be irresponsible and damaging.

Towards a global framework for advertising self regulation

One of the forces which has indelibly shaped marketing is the internet. It has not only changed the way we communicate, but our marketing practices and our advertising self-regulation process (Kerr, Mortimer, Dickinson and Waller 2012). This special session seeks to build a new global framework to regulate advertising activity in this uncharted online environment. It looks back to how advertising has been traditionally self-regulated and looks forward to identify the key issues for marketers, consumers, regulators and the media. This special session explores and reinforces the fundamental purpose of the conference, as well as addressing the urgent needs of marketers, consumers and regulators.

A runtime integrity monitoring framework for real-time relative positioning systems based on GPS and DSRC

This paper provides a three-layered framework to monitor the positioning performance requirements of Real-time Relative Positioning (RRP) systems of the Cooperative Intelligent Transport Systems (C-ITS) that support Cooperative Collision Warning (CCW) applications. These applications exploit state data of surrounding vehicles obtained solely from the Global Positioning System (GPS) and Dedicated Short-Range Communications (DSRC) units without using other sensors. To this end, the paper argues the need for the GPS/DSRC-based RRP systems to have an autonomous monitoring mechanism, since the operation of CCW applications is meant to augment safety on roads. The advantages of autonomous integrity monitoring are essential and integral to any safety-of-life system. The autonomous integrity monitoring framework proposed necessitates the RRP systems to detect/predict the unavailability of their sub-systems and of the integrity monitoring module itself, and, if available, to account for effects of data link delays and breakages of DSRC links, as well as of faulty measurement sources of GPS and/or integrated augmentation positioning systems, before the information used for safety warnings/alarms becomes unavailable, unreliable, inaccurate or misleading. Hence, a monitoring framework using a tight integration and correlation approach is proposed for instantaneous reliability assessment of the RRP systems. Ultimately, using the proposed framework, the RRP systems will provide timely alerts to users when the RRP solutions cannot be trusted or used for the intended operation.

Misleading conduct arising from public statements : establishing the knowledge base of the target audience

Despite the very substantial body of primary sources and secondary literature on Australia’s much-litigated statutory provisions proscribing misleading or deceptive conduct, the courts have provided little in the way of assistance about how to establish the knowledge base of the target audience at whom the public statement was directed. The purpose of this case note is to compare and contrast two recent decisions of the High Court of Australia that highlight the difficulties faced by applicants in attempting to establish a contravention of the relevant legislation where conduct is directed at a segment of the public or the public as a whole.