Purpose – This paper aims to test whether a structured application of persuasion principles might help improve advertising decisions. Evidence-based principles are currently used to improve decisions in other complex situations, such as those faced in engineering and medicine. Design/methodology/approach – Scores were calculated from the ratings of 17 self-trained novices who rated 96 matched pairs of print advertisements for adherence to evidence-based persuasion principles. Predictions from traditional methods – 10,809 unaided judgments from novices and 2,764 judgments from people with some expertise in advertising and 288 copy-testing predictions – provided benchmarks. Findings – A higher adherence-to-principles-score correctly predicted the more effective advertisement for 75 per cent of the pairs. Copy testing was correct for 59 per cent, and expert judgment was correct for 55 per cent. Guessing would provide 50 per cent accurate predictions. Combining judgmental predictions led to substantial improv...
{"title":"Predictive Validity of Evidence-Based Persuasion Principles: An Application of the Index Method","authors":"J. Armstrong, K. Green, Rui Du, A. Graefe","doi":"10.2139/ssrn.2660714","DOIUrl":"https://doi.org/10.2139/ssrn.2660714","url":null,"abstract":"Purpose – This paper aims to test whether a structured application of persuasion principles might help improve advertising decisions. Evidence-based principles are currently used to improve decisions in other complex situations, such as those faced in engineering and medicine. Design/methodology/approach – Scores were calculated from the ratings of 17 self-trained novices who rated 96 matched pairs of print advertisements for adherence to evidence-based persuasion principles. Predictions from traditional methods – 10,809 unaided judgments from novices and 2,764 judgments from people with some expertise in advertising and 288 copy-testing predictions – provided benchmarks. Findings – A higher adherence-to-principles-score correctly predicted the more effective advertisement for 75 per cent of the pairs. Copy testing was correct for 59 per cent, and expert judgment was correct for 55 per cent. Guessing would provide 50 per cent accurate predictions. Combining judgmental predictions led to substantial improv...","PeriodicalId":226716,"journal":{"name":"ERPN: Promotion/Advertising Strategies (Sub-Topic)","volume":"35 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2015-09-15","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"127655733","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
As sponsored search becomes increasingly important as an advertising medium for firms, search engines are exploring more advanced bidding and ranking mechanisms to increase their revenue from auctions for sponsored search advertising. For instance, Google, Yahoo! and Bing are experimenting with auction mechanisms in which each advertiser can bid to be displayed exclusively. In such an auction, each advertiser submits two bids: one bid for the standard display format in which multiple advertisers are displayed, and one bid for being shown exclusively. The search engine decides the outcome as non-exclusive or exclusive based on revenue generated — if the exclusive-placement bid by an advertiser is high enough then only that advertiser is displayed, otherwise multiple advertisers are displayed and ranked based on their multiple-placement bids. We find that allowing advertisers to bid for exclusivity has two countervailing effects for search engine revenue. First, competition is heightened because bidders can express their display preferences more flexibly and compete not only for positions in the non-exclusive outcome but also compete for the outcome to be exclusive or non-exclusive; this is good for search engine revenue. Second, competition between non-exclusive and exclusive outcomes gives bidders the incentive to reduce their bids for their non- preferred outcome; this is bad for search engine revenue. Under different parametric conditions, either force can prevail and search engine revenue may increase or decrease accordingly. We also find counterintuitive results on the bidding strategies of advertisers; for instance, we find that, under certain conditions, advertisers have the incentive to bid above their true valuations.
{"title":"Exclusive Display in Sponsored Search Advertising","authors":"Kinshuk Jerath, Amin Sayedi","doi":"10.2139/ssrn.1831744","DOIUrl":"https://doi.org/10.2139/ssrn.1831744","url":null,"abstract":"As sponsored search becomes increasingly important as an advertising medium for firms, search engines are exploring more advanced bidding and ranking mechanisms to increase their revenue from auctions for sponsored search advertising. For instance, Google, Yahoo! and Bing are experimenting with auction mechanisms in which each advertiser can bid to be displayed exclusively. In such an auction, each advertiser submits two bids: one bid for the standard display format in which multiple advertisers are displayed, and one bid for being shown exclusively. The search engine decides the outcome as non-exclusive or exclusive based on revenue generated — if the exclusive-placement bid by an advertiser is high enough then only that advertiser is displayed, otherwise multiple advertisers are displayed and ranked based on their multiple-placement bids. We find that allowing advertisers to bid for exclusivity has two countervailing effects for search engine revenue. First, competition is heightened because bidders can express their display preferences more flexibly and compete not only for positions in the non-exclusive outcome but also compete for the outcome to be exclusive or non-exclusive; this is good for search engine revenue. Second, competition between non-exclusive and exclusive outcomes gives bidders the incentive to reduce their bids for their non- preferred outcome; this is bad for search engine revenue. Under different parametric conditions, either force can prevail and search engine revenue may increase or decrease accordingly. We also find counterintuitive results on the bidding strategies of advertisers; for instance, we find that, under certain conditions, advertisers have the incentive to bid above their true valuations.","PeriodicalId":226716,"journal":{"name":"ERPN: Promotion/Advertising Strategies (Sub-Topic)","volume":"4 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2015-03-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"130040698","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
The purpose of this paper is to gain a better understanding of the meaning and implementation of promotion forms and strategies by small businesses in Republic of Macedonia. Taking into account the benefits of promotion strategies, through this paper we will try to inform SMEs owners and managers with modern communication forms and technologies while operating in the markets. In order to reach the purposes of this paper, a contemporary literature of this field was consulted and a structured questionnaire was distributed to 298 small businesses that operate in our country, in order to find out how they communicate with the market, how much they pay attention to the important forms of promotion and how much is invested in strategies of promotion. Based on this survey, we have managed to observe the real situation on which forms of promotion are mostly implemented in practice and how they affect the business success of companies.
{"title":"Promotion Activities in Small Businesses: Empirical Evidence from Macedonia","authors":"Nexhbi Veseli, Veland Ramadani","doi":"10.2139/ssrn.2069974","DOIUrl":"https://doi.org/10.2139/ssrn.2069974","url":null,"abstract":"The purpose of this paper is to gain a better understanding of the meaning and implementation of promotion forms and strategies by small businesses in Republic of Macedonia. Taking into account the benefits of promotion strategies, through this paper we will try to inform SMEs owners and managers with modern communication forms and technologies while operating in the markets. In order to reach the purposes of this paper, a contemporary literature of this field was consulted and a structured questionnaire was distributed to 298 small businesses that operate in our country, in order to find out how they communicate with the market, how much they pay attention to the important forms of promotion and how much is invested in strategies of promotion. Based on this survey, we have managed to observe the real situation on which forms of promotion are mostly implemented in practice and how they affect the business success of companies.","PeriodicalId":226716,"journal":{"name":"ERPN: Promotion/Advertising Strategies (Sub-Topic)","volume":"24 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2012-06-29","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"134185200","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Brands and word-of-mouth (WOM) are cornerstones of marketing, yet, their relationship was largely ignored. In order to explore this relationship we present a theoretical framework whose fundamentals are consumers and what stimulates them to engage in WOM. It argues that consumers spread the word on brands as a result of three drivers: functional, social, and emotional. Through these motives and needs we identify a set of brand characteristics (e.g. level of differentiation) that play a role in stimulating WOM. To examine our theoretical framework empirically, we constructed a unique data set on the online and offline WOM and the characteristics of the 697 most talked-about national US brands. Using MCMC estimation we find that (i) brand characteristics play an important role in generating WOM, and (ii) that the impact of the characteristics differs between offline conversations and online brand mentions. We also find that while the social and functional drivers are the most important for online WOM, the emotional driver is the most important for offline WOM. These results portray an interesting picture of WOM and have meaningful managerial implications (e.g. investment in WOM).
{"title":"On Brands and Word-of-Mouth","authors":"Renana Peres, R. Shachar, Mitchell J. Lovett","doi":"10.2139/ssrn.1968602","DOIUrl":"https://doi.org/10.2139/ssrn.1968602","url":null,"abstract":"Brands and word-of-mouth (WOM) are cornerstones of marketing, yet, their relationship was largely ignored. In order to explore this relationship we present a theoretical framework whose fundamentals are consumers and what stimulates them to engage in WOM. It argues that consumers spread the word on brands as a result of three drivers: functional, social, and emotional. Through these motives and needs we identify a set of brand characteristics (e.g. level of differentiation) that play a role in stimulating WOM. To examine our theoretical framework empirically, we constructed a unique data set on the online and offline WOM and the characteristics of the 697 most talked-about national US brands. Using MCMC estimation we find that (i) brand characteristics play an important role in generating WOM, and (ii) that the impact of the characteristics differs between offline conversations and online brand mentions. We also find that while the social and functional drivers are the most important for online WOM, the emotional driver is the most important for offline WOM. These results portray an interesting picture of WOM and have meaningful managerial implications (e.g. investment in WOM).","PeriodicalId":226716,"journal":{"name":"ERPN: Promotion/Advertising Strategies (Sub-Topic)","volume":"13 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2011-10-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"115576013","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Purpose – In this paper we examine the role of attachment in consumer brand relationships and its links with constructs such as trust, satisfaction, commitment and behavioral loyalty. Design/methodology/approach – this paper is based on exploratory and confirmatory studies that provide a model that explains the relationship between brand attachment and its outcomes. A structural equation modeling is used to assess the hypothetical links. Findings – The findings of the structural model confirm the majority of the hypothesised relationships. Brand attachment is considered as an important input to brand commitment for utilitarian product. Originality/value – Few studies have attempted to model the relationship between brand attachment and its antecedents and outcomes. This research focused also on a particular utilitarian product that is not – apparently – emotional laden.
{"title":"The Role of Attachment in Building Consumer-Brand Relationships: An Empirical Investigation in Utilitarian Consumption Context","authors":"Samy Belaid, Azza Temessek Behi","doi":"10.2139/ssrn.1670678","DOIUrl":"https://doi.org/10.2139/ssrn.1670678","url":null,"abstract":"Purpose – In this paper we examine the role of attachment in consumer brand relationships and its links with constructs such as trust, satisfaction, commitment and behavioral loyalty. Design/methodology/approach – this paper is based on exploratory and confirmatory studies that provide a model that explains the relationship between brand attachment and its outcomes. A structural equation modeling is used to assess the hypothetical links. Findings – The findings of the structural model confirm the majority of the hypothesised relationships. Brand attachment is considered as an important input to brand commitment for utilitarian product. Originality/value – Few studies have attempted to model the relationship between brand attachment and its antecedents and outcomes. This research focused also on a particular utilitarian product that is not – apparently – emotional laden.","PeriodicalId":226716,"journal":{"name":"ERPN: Promotion/Advertising Strategies (Sub-Topic)","volume":"7 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2010-08-31","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"115914754","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
In paid search advertising on Internet search engines, advertisers bid for specific keywords, e.g. "Rental Cars LAX," to display a text ad in the sponsored section of the search results page. The advertiser is charged when a user clicks on the ad. Many of the keywords in paid search campaigns generate few, if any, sales conversions - even over several months. This sparseness makes it difficult to assess the profit performance of individual keywords and has led to the practice of managing large groups of keywords together or relying on easy-to-calculate heuristics such as click-through rate (CTR). The authors develop a model of individual keyword conversion that addresses the sparseness problem. Conversion rates are estimated using a hierarchical Bayes binary choice model. This enables conversion to be based on both word-level covariates and shrinkage across keywords. The model is applied to keyword-level paid search data containing daily information on impressions, clicks and reservations for a major lodging chain. The results show that including keyword-level covariates and heterogeneity significantly improves conversion estimates. A holdout comparison suggests that campaign management based on the model, i.e., estimated cost-per-sale on a keyword level, would outperform existing managerial strategies.
{"title":"A Model of Individual Keyword Performance in Paid Search Advertising","authors":"Oliver J. Rutz, R. Bucklin","doi":"10.2139/ssrn.1024765","DOIUrl":"https://doi.org/10.2139/ssrn.1024765","url":null,"abstract":"In paid search advertising on Internet search engines, advertisers bid for specific keywords, e.g. \"Rental Cars LAX,\" to display a text ad in the sponsored section of the search results page. The advertiser is charged when a user clicks on the ad. Many of the keywords in paid search campaigns generate few, if any, sales conversions - even over several months. This sparseness makes it difficult to assess the profit performance of individual keywords and has led to the practice of managing large groups of keywords together or relying on easy-to-calculate heuristics such as click-through rate (CTR). The authors develop a model of individual keyword conversion that addresses the sparseness problem. Conversion rates are estimated using a hierarchical Bayes binary choice model. This enables conversion to be based on both word-level covariates and shrinkage across keywords. The model is applied to keyword-level paid search data containing daily information on impressions, clicks and reservations for a major lodging chain. The results show that including keyword-level covariates and heterogeneity significantly improves conversion estimates. A holdout comparison suggests that campaign management based on the model, i.e., estimated cost-per-sale on a keyword level, would outperform existing managerial strategies.","PeriodicalId":226716,"journal":{"name":"ERPN: Promotion/Advertising Strategies (Sub-Topic)","volume":"85 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2007-06-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"129082742","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2006-09-15DOI: 10.1108/10610420710731160
Patrali Chatterjee
Purpose – The research investigates how consumers differ in their interpretation of advertised and “surprise” (or unexpected) next-purchase coupons as delayed rewards or immediate losses based on promotion context and coupon start date restrictions.Design/methodology/approach – Two laboratory experiments examine how consumers respond to next-purchase coupons. In Study 1, next-purchase coupon types (advertised; unexpected) vs. competing brand promotions (yes; no) vs. coupon start date restriction (unrestricted; restricted to future start date) between-subjects experimental design was used to examine the impact on purchase satisfaction, perceived promotion value, and perceived retailer fairness. In Study 2, four between-subjects factors were used to examine the impact on purchase satisfaction, perceived value, and retailer fairness: next-purchase coupon type vs. coupon start date restriction vs. coupon target restriction (brand-specific; non brand-specific) and the measured need-for-cognition variable (high; low).Findings – Study 1 indicates that unexpected next-purchase coupons lead to higher purchase satisfaction but lower perceptions of retailer fairness compared to advertised coupons. Study 2 indicates that consumer predisposition toward effortful thought (NFC) amplifies the impact of unrestricted start date on perceptions of retailer unfairness. Furthermore, this effect is stronger on purchase satisfaction and perceived value for unrestricted unexpected next-purchase coupons.Research limitations/implications – Results imply that advertised and unexpected next-purchase coupons differ in their impact on post-purchase outcomes of consumers. Differences in competing brand promotions and coupon start date restrictions lead to interpretations of next-purchase coupons as immediate loss vs. delayed gains.Practical implications – Managerial implications for the design and use of next-purchase promotions are discussed.Originality/value – The research paper is the first one to study how consumers respond to checkout or next-purchase coupons.
{"title":"Advertised Versus Unexpected Next Purchase Coupons: Consumer Satisfaction, Perceptions of Value, and Fairness","authors":"Patrali Chatterjee","doi":"10.1108/10610420710731160","DOIUrl":"https://doi.org/10.1108/10610420710731160","url":null,"abstract":"Purpose – The research investigates how consumers differ in their interpretation of advertised and “surprise” (or unexpected) next-purchase coupons as delayed rewards or immediate losses based on promotion context and coupon start date restrictions.Design/methodology/approach – Two laboratory experiments examine how consumers respond to next-purchase coupons. In Study 1, next-purchase coupon types (advertised; unexpected) vs. competing brand promotions (yes; no) vs. coupon start date restriction (unrestricted; restricted to future start date) between-subjects experimental design was used to examine the impact on purchase satisfaction, perceived promotion value, and perceived retailer fairness. In Study 2, four between-subjects factors were used to examine the impact on purchase satisfaction, perceived value, and retailer fairness: next-purchase coupon type vs. coupon start date restriction vs. coupon target restriction (brand-specific; non brand-specific) and the measured need-for-cognition variable (high; low).Findings – Study 1 indicates that unexpected next-purchase coupons lead to higher purchase satisfaction but lower perceptions of retailer fairness compared to advertised coupons. Study 2 indicates that consumer predisposition toward effortful thought (NFC) amplifies the impact of unrestricted start date on perceptions of retailer unfairness. Furthermore, this effect is stronger on purchase satisfaction and perceived value for unrestricted unexpected next-purchase coupons.Research limitations/implications – Results imply that advertised and unexpected next-purchase coupons differ in their impact on post-purchase outcomes of consumers. Differences in competing brand promotions and coupon start date restrictions lead to interpretations of next-purchase coupons as immediate loss vs. delayed gains.Practical implications – Managerial implications for the design and use of next-purchase promotions are discussed.Originality/value – The research paper is the first one to study how consumers respond to checkout or next-purchase coupons.","PeriodicalId":226716,"journal":{"name":"ERPN: Promotion/Advertising Strategies (Sub-Topic)","volume":"149 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2006-09-15","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"116053257","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
The paper discusses the relevance of hierarchy of brands, and the role of brand audit to manage the brand portfolio of a firm emerging in competitive business arena. The discussion in the paper also delineates the steps involved in architecting a brand in a firm from the managerial perspective. The value of corporate brand endorsement across different products and product lines, and at lower levels of the brand hierarchy also needs to be assessed. Use of corporate brand endorsement either as a name identifier or logo identifies the product with the company, and provides reassurance for the customer. The brand architecture should incorporate the entire firm's existing brands, whether developed internally or acquired. It should provide a framework for consolidation in order to reduce the number of brands and strengthen the role of individual brands.
{"title":"Architecting Brands: Managerial Process and Control for Emerging Enterprises","authors":"D. Rajagopal","doi":"10.2139/ssrn.916022","DOIUrl":"https://doi.org/10.2139/ssrn.916022","url":null,"abstract":"The paper discusses the relevance of hierarchy of brands, and the role of brand audit to manage the brand portfolio of a firm emerging in competitive business arena. The discussion in the paper also delineates the steps involved in architecting a brand in a firm from the managerial perspective. The value of corporate brand endorsement across different products and product lines, and at lower levels of the brand hierarchy also needs to be assessed. Use of corporate brand endorsement either as a name identifier or logo identifies the product with the company, and provides reassurance for the customer. The brand architecture should incorporate the entire firm's existing brands, whether developed internally or acquired. It should provide a framework for consolidation in order to reduce the number of brands and strengthen the role of individual brands.","PeriodicalId":226716,"journal":{"name":"ERPN: Promotion/Advertising Strategies (Sub-Topic)","volume":"51 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2006-07-08","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"115112421","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
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