http://repub.eur.nl/res/concept/jel-M37/ Recent publications classified by JEL Code M37 en http://repub.eur.nl/static-eur/img/logo.png http://repub.eur.nl http://repub.eur.nl/res/pub/39630/ 2013-04-15T00:00:00Z Consumer embarrassment is an important concern for marketers. Yet, little is known about embarrassment in passive situations like advertising viewing. The authors investigate when and why consumers experience embarrassment as a result of exposure to socially sensitive advertisements. The theory distinguishes between viewing potentially embarrassing ads together with an audience that shares the social identity targeted by the message and viewing the same ads together with an audience that does not share the targeted social identity. Four studies provide support for the theory, demonstrating that advertising targeting and social context jointly determine feelings of embarrassment and advertising effectiveness. Puntoni, S. Hooge, I.E. de Verbeke, W.J.M.I. http://repub.eur.nl/res/pub/23641/ 2011-06-01T00:00:00Z Breast cancer communications that make women's gender identity salient can trigger defense mechanisms and thereby interfere with key objectives of breast cancer campaigns. In a series of experiments, the authors demonstrate that increased gender identity salience lowered women's perceived vulnerability to breast cancer (Experiments 1a, 3a, and 3b), reduced their donations to ovarian cancer research (Experiment 1b), made breast cancer advertisements more difficult to process (Experiment 2a), and decreased ad memory (Experiment 2b). These results are contrary to the predictions of several prominent theoretical perspectives and a convenience sample of practitioners. The reduction in perceived vulnerability to breast cancer following gender identity primes can be eliminated by self-affirmation (Experiment 3a) and fear voicing (Experiment 3b), corroborating the hypothesis that these effects are driven by unconscious defense mechanisms Puntoni, S. Sweldens, S.T.L.R. Tavassoli, N.T. http://repub.eur.nl/res/pub/20834/ 2010-10-01T00:00:00Z Celebrity endorsement is omnipresent. However, despite its prevalence, it is unclear why celebrities are more persuasive than (equally attractive) non-famous endorsers. The present study investigates which processes underlie the effect of fame on product memory and purchase intention by the use of functional magnetic resonance imaging methods. We find an increase in activity in the medial orbitofrontal cortex (mOFC) underlying the processing of celebrity–product pairings. This finding suggests that the effectiveness of celebrities stems from a transfer of positive affect from celebrity to product. Additional neuroimaging results indicate that this positive affect is elicited by the spontaneous retrieval of explicit memories associated with the celebrity endorser. Also, we demonstrate that neither the activation of implicit memories of earlier exposures nor an increase in attentional processing is essential for a celebrity advertisement to be effective. By explaining the neural mechanism of fame, our results illustrate how neuroscience may contribute to a better understanding of consumer behavior Stallen, M. Smidts, A. Rijpkema, M. Smit, G. Klucharev, V. Fernandez, G. http://repub.eur.nl/res/pub/22341/ 2010-09-01T00:00:00Z This paper shows how a firm can use non-targeted advertising to exploit consumers' desire for social status. A monopolist sells multiple varieties of a good to consumers who each care about what others believe about his wealth. Advertising allows consumers both to buy different varieties and to recognize them when others buy. In equilibrium, the firm advertises each variety to those who will buy but also to all poorer consumers who will not, so that they understand what having the goods signals. If concern for status is sufficiently high, then the firm will only place a single variety on the market. Vikander, N. http://repub.eur.nl/res/pub/16417/ 2009-02-01T00:00:00Z An important role of informative advertising is to inform consumers of the simple fact that the shop that advertises sells a particular product. This information may help consumers to save on their search activities: instead of wandering around, a consumer can simply visit the shop that has advertised, knowing that there he can find the commodity he is looking for. The implications of this simple fact have not been studied before. Using game theoretic reasoning in a model that combines consumer search and firms' advertising we show that firms may find it optimal to advertise prices that are higher than nonadvertised prices. The important mechanism underlying this result is that advertising lowers the expected search cost for consumers. Through this analysis we provide a new insight into the role of informative advertising. Janssen, M.C.W. Non, M.C. http://repub.eur.nl/res/pub/13765/ 2008-11-04T00:00:00Z Previous research has considered how exploratory market learning processes moderate market and technological uncertainty in radical product development. Scholars argue that new product development (NPD) teams may increase the chances of success of radically new projects by acquiring, assimilating and implementing new information from market feedback. However, research has not tackled how information is assimilated by the NPD team and to what extent the process of information implementation occurs. In this article, we begin to fill the need for such research by investigating the interaction between internal team values (beliefs and possibly ideology) and external market feedback / information in radical projects. Via the lens of a 2-year longitudinal participant-observation study, we suggest that information assimilation is not automatic, but rather influenced in interesting ways by internal team values. The findings imply that shared team values act as a selective assimilation mechanism determining whether a development team will act on user feedback. Furthermore, the type of information (e.g., functional vs. conceptual feedback) processed by the development team acts as a moderating factor on the relationship between the team values and information processing. Berchicci, L. Tucci, C.L. http://repub.eur.nl/res/pub/13613/ 2008-10-20T00:00:00Z Contrary to predictions based on cognitive accessibility, heightened gender identity salience resulted in lower perceived vulnerability and reduced donation behavior to identity-specific risks (e.g., breast cancer). No such effect was manifest with identity-neutral risks. Establishing the importance of self-identity, perceived breast cancer vulnerability was lower when women were primed with their own gender, but not with the general category of gender. Establishing the involvement of unconscious defense mechanisms, fear appraisal prior to the risk rating task eliminated the effect of a gender identity prime on perceived breast cancer vulnerability. The findings have direct implications for health communication and donation campaigns. Sweldens, S.T.L.R. Puntoni, S. Tavassoli, N.T. http://repub.eur.nl/res/pub/13181/ 2008-09-02T00:00:00Z The universality of design perception and response is tested using data collected from ten countries: Argentina, Australia, China, Germany, Great Britain, India, the Netherlands, Russia, Singapore, and the United States. A Bayesian, finite-mixture, structural-equation model is developed that identifies latent logo clusters while accounting for heterogeneity in evaluations. The concomitant variable approach allows cluster probabilities to be country specific. Rather than a priori defined clusters, our procedure provides a posteriori cross-national logo clusters based on consumer response similarity. To compare the a posteriori cross-national logo clusters, our approach is integrated with Steenkamp and Baumgartner’s (1998) measurement invariance methodology. Our model reduces the ten countries to three cross-national clusters that respond differently to logo design dimensions: the West, Asia, and Russia. The dimensions underlying design are found to be similar across countries, suggesting that elaborateness, naturalness, and harmony are universal design dimensions. Responses (affect, shared meaning, subjective familiarity, and true and false recognition) to logo design dimensions (elaborateness, naturalness, and harmony) and elements (repetition, proportion, and parallelism) are also relatively consistent, although we find minor differences across clusters. Our results suggest that managers can implement a global logo strategy, but they also can optimize logos for specific countries if desired. Lans, R.J.A. van der Cote, J.A. Janakiraman, M. Ramaseshan, B. Schmitt, B.H. Cole, C.A. Leong, S.M. Smidts, A. Henderson, P.W. Bluemelhuber, C. Bottomley, P.A. Doyle, J.R. Fedorikhin, A.S. http://repub.eur.nl/res/pub/12784/ 2008-07-16T00:00:00Z Human behavior is affected by various forms of persuasion. The general persuasive effect of high expertise of the communicator, often referred to as "expert power", is well documented. We found that a single exposure to a combination of an expert and an object leads to a long-lasting positive effect on memory for and attitude towards the object. Using functional magnetic resonance imaging (fMRI), we probed the neural processes predicting these behavioral effects. Expert context was associated with distributed left-lateralized brain activity in prefrontal and temporal cortices related to active semantic elaboration. Furthermore, experts enhanced subsequent memory effects in the medial temporal lobe (i.e. in hippocampus and parahippocampal gyrus) involved in memory formation. Experts also affected subsequent attitude effects in the caudate nucleus involved in trustful behavior, reward processing and learning. These results may suggest that the persuasive effect of experts is mediated by modulation of caudate activity resulting in a re-evaluation of the object in terms of its perceived value. Results extend our view of the functional role of the dorsal striatum in social interaction and enable us to make the first steps toward a neuroscientific model of persuasion. Klucharev, V. Smidts, A. Fernández, G. http://repub.eur.nl/res/pub/11671/ 2008-01-01T00:00:00Z We consider a duopoly in a homogenous goods market where part of the consumers are ex ante uninformed about prices. Information can come through two different channels: advertising and sequential consumer search. We arrive at the following results. First, there is no monotone relationship between prices and the degree of advertising. Second, advertising and search are “substitutes” for a large range of parameters. Third, when the cost of either search or advertising vanishes, the competitive outcome arises. Finally, both expected advertised and non-advertised prices are non-monotonic in search cost. One of the implications is that firms actually may benefit from consumers having low (rather than high) search costs. Janssen, M.C.W. Non, M.C. http://repub.eur.nl/res/pub/10890/ 2007-12-19T00:00:00Z Cutting advertising budgets has traditionally been a popular reaction by companies around the globe when faced with a slacking economy. Still, anecdotal evidence suggests the presence of considerable cross-country variability in the cyclical sensitivity of advertising expenditures. We conduct a systematic investigation into the cyclical sensitivity of advertising expenditures in 37 countries across all continents, covering up to 25 years and four key media: magazines, newspapers, radio and television. While our findings confirm that advertising moves in the same direction as the general economic activity, we also show that advertising is considerably more sensitive to business-cycle fluctuations than the economy as a whole, with an average co-movement elasticity of 1.4. Interestingly, advertising’s cyclical dependence is systematically related to the cultural context in which companies operate. Advertising behaves less cyclically in countries high on long-term orientation and power distance, while advertising is more cyclical in countries high on uncertainty avoidance. Further, advertising is more sensitive to the business cycle in countries characterized by significant stock-market pressure and few foreign-owned multinationals. These results have important strategic implications for both global advertisers and their ad agencies. Deleersnyder, B. Dekimpe, M.G. Steenkamp, J-B.E.M. Leeflang, P.S.H. http://repub.eur.nl/res/pub/9405/ 2007-03-28T00:00:00Z The study investigates the effects of direct and mass marketing communications on the adoption timing of a new e-service among existing customers. The mass marketing communications concern both specific new service advertising and brand advertising from both the focal supplier and competitors. Using a split-hazard approach, the authors account for the fact that a significant part of the customer base will never adopt the new e-service. The empirical results show that service advertising shortens the time to adoption, even when it is initiated by competitors. Prins, R. Verhoef, P.C. http://repub.eur.nl/res/pub/7948/ 2006-09-07T00:00:00Z We propose a dynamic direct mailing response model with competitive effects, where purchase and promotion history are incorporated. We then map the dynamic competitive interactions amongst the firms sending the mailings. We investigate the short- and long-run impact of a direct mailing on the revenues of the firm sending the mailing and on the revenues of its competitors. The model accounts for unobserved heterogeneity across households. We estimate the model in the charitable giving setting, as sending direct mailings represents a large part of charitable fundraising activity. Households often receive direct mailings of different charities within a short period of time and competition is highly relevant. We construct a unique database by merging the databases of three large charity organizations in the Netherlands. This results in household level data on the direct mailings received and the donations made by each household to each charity. Our results show that charitable direct mailings are short-run complements, that is, the direct mailings tend to increase the total pie that is divided among the charities. At the same time, the charitable direct mailings are long-run substitutes. In the long run they fight for a piece of the pie that households have available for charitable giving. Diepen, M. van Donkers, A.C.D. Franses, Ph.H.B.F. http://repub.eur.nl/res/pub/7898/ 2006-08-22T00:00:00Z The article reviews the conceptual foundations of advertising polysemy – the occurrence of different interpretations for the same advertising message. We discuss how disciplines as diverse as psychology, semiotics and literary theory have dealt with the issue of polysemy, and provide translations and integration among these multiple perspectives. From such review we draw recurrent themes to foster future research in the area and to show how seemingly opposed methodological and theoretical perspectives complement and extend each other. Implications for advertising research and practice are discussed. Puntoni, S. Schroeder, J.E. Ritson, M. http://repub.eur.nl/res/pub/7916/ 2006-08-01T00:00:00Z The search literature assumes that consumers know which firms sell products they are looking for, but are unaware of the particular variety and the prices at which each firm sells. In this paper, we consider the situation where consumers are uncertain whether a firm carries the product at all by proposing a model where in the first stage firms decide on whether or not to carry the product. Firms may advertise, informing consumers not only of the price they charge, but also of the basic fact that they sell the product. In this way, advertising lowers the expected search cost. We show that this role of advertising can lead to a situation where advertised prices are higher than non—advertised prices in equilibrium. Janssen, M.C.W. Non, M.C. http://repub.eur.nl/res/pub/6981/ 2005-11-24T00:00:00Z Het opdoemend netwerk van mondiale hubs en stromen van geld, media, technologie en migratie, hebben geleid tot een algemene bewustwording rond oplopende spanningen tussen mondiale en locale identiteiten en imago’s. Dubai, het onderzoeksdecor van dit proefschrift, is een goed voorbeeld. Met internet en mobiele technologie bestaat het creëren van bestemmingsimago’s niet langer uit een eenzijdig pushproces van massacommunicatie. Steeds belangrijker worden dynamische interactieve processen van reflecteren, selecteren, debatteren en ervaren. Dit proefschrift construeert daarom een dynamisch toeristisch bestemmingsimago-ontwikkelingsmodel waarbij de driehoeksverhouding tussen plaatsidentiteit, geprojecteerd imago en gepercipieerd imago leidt tot een spanningsveld, welke wordt kortgesloten tijdens de reisbeleving, wanneer host (aanbod) en gast (vraag) elkaar ontmoeten. Op dat moment kunnen drie kloven in het model een negatief effect hebben op de klanttevredenheid, hetgeen in dit proefschrift empirisch wordt onderzocht door het meten van geprojecteerd en gepercipieerd imago. Dit wordt bewerkstelligd door een innovatieve methodologie gebaseerd op geautomatiseerde inhoudsanalyse. Het geprojecteerd imago is vestgesteld door middel van inhoudsanalyse op 20 in Dubai gevestigde toeristische websites, terwijl gepercipieerd imago is gemeten door middel van inhoudsanalyse op 1.100 online reacties op een kwalitatief imago-onderzoek. De resultaten tonen aan dat men in Dubai de drie kloven dient te overbruggen, aangezien de snelle ontwikkeling van Dubai als een mondiale hub soms voorbij gaat aan de verankering in de sterke lokale identiteit en het gevestigd imago. Een theoretische oplossing voor het overbruggen van de kloven wordt besproken en conceptueel toegepast in het concluderend hoofdstuk. Het is gebaseerd op de literatuur rond stedelijke of regionale merkontwikkeling en staaft de algemene bruikbaarheid van het model en de onderzoeksmethodologie zoals die in dit proefschrift ontwikkeld werden. Govers, R. http://repub.eur.nl/res/pub/6596/ 2005-02-16T00:00:00Z We consider a duopoly in a homogenous goods market where part of the consumers are ex ante uninformed about prices. Information can come through two different channels: advertising and sequential consumer search. The model is similar to that of Robert and Stahl (1993) with two major (and some minor) modifications: (i) a (small) percentage of consumers is fully informed and (ii) less informed consumers do not have to pay a search cost for buying at a firm from which they have received an ad. We derive the symmetric Nash equilibria and show that price dispersion is an essential ingredient of any equilibrium. Despite the similarities in the models, our results differ substantially from those obtained by Robert and Stahl (1993). First, advertising and search are "substitutes" for a large range of parameters. Second, there is no monotone relationship between prices and the degree of advertising. In particular, it is possible that high prices are advertised, while low prices are not. Third, when the cost of either one of the information channels (search or advertising) vanishes, the competitive outcome arises. Finally, both expected advertised and non-advertised prices are non-monotonic in search cost. One of the implications is that firms actually may benefit from consumers having low (rather than high) search costs. Janssen, M.C.W. Non, M.C. http://repub.eur.nl/res/pub/1266/ 2004-04-03T00:00:00Z Using weekly data on advertising expenditures in various media and response data on awareness, consideration and choice, we test the hierarchy of effects hypothesis. Our empirical results, based on a simultaneous equations model with pooled parameters across brands, suggest that we can reject this hypothesis convincingly. Next, we consider a vector error correction model, again with pooled parameters, to see if there are dynamic effects of advertising. For the category under scrutiny, we find that most advertising effects exist for awareness, although at the same time there are effects for choice. Newspaper advertising turns out to be most influential. Franses, Ph.H.B.F. Vriens, M. http://repub.eur.nl/res/pub/193/ 2002-04-18T00:00:00Z In this study, Heckler & Childers' (1992) two-dimensional conceptualization of incongruity is employed and related to the different schemas that consumers use in ad processing. Consumers can relate advertising to expectations about ads for the product concerned from the ad schema or to brand-related expectations from the brand schema. If an ad is incongruent with the brand schema, consumer responses to incongruity do not only reflect expectancy of the ad, but also involve determining relevancy to the brand, consistent with the two-dimensional conceptualization of incongruity. However, if an ad is incongruent with the ad schema consumers will only react to the expectancy dimension of incongruity. Therefore, these two types of incongruity have different consequences in terms of consumer evaluation, processing and categorization. We find that incongruity with the ad schema mainly has affective consequences. Ads that are incongruent with the ad schema lead to more arousal and consequently more favorable ad evaluations than ads that are congruent with the ad schema. Incongruity with the brand schema has predominantly cognitive consequences. Ads that are incongruent with the brand schema lead to more extensive processing than ads that are congruent with the brand schema. Brand beliefs and categorization change as a result of incongruent advertising information. Loef, J. Verlegh, P.W.J. http://repub.eur.nl/res/pub/175/ 2002-03-06T00:00:00Z How do competitors react to each other's price-promotion and advertising actions? How do these reactions influence the net sales impact we observe? We answer these questions by performing a large-scale empirical study of the short-run and long-run reactions to promotion and advertising shocks in over 400 consumer product categories, over a four-year time span. Competitive reaction can be passive, accommodating or retaliatory. We first develop a series of expectations on the type and intensity of reaction behavior, and on the moderators of this behavior. These expectations are assessed in two ways. First, vector-autoregressive models quantify the short-run and long-run effect of a promotion or advertising action on competitive sales and on competitive reactions. By cataloging the numerical results, we are able to formulate empirical generalizations of reaction behavior ("how do they react?"). Second, we estimate structural models of reaction intensity, in function of various market and competitive characteristics ("what are the drivers of reaction?"). Finally, by comparing our findings on reaction behavior with those on promotion and advertising effectiveness, we are able to evaluate competitive reaction behavior ("are they reacting as they should?"). A major finding is that competitive reaction is predominantly passive. When it is present, it is usually retaliatory in the same instrument, but accommodating or retaliatory in a different instrument. There are very few long-run consequences of any type of reaction behavior. We also report on several moderating effects that are in line with expectations, and that support the presence of a certain amount of rationality in competitive reaction behavior. The net impact of the over-time effects of advertising and price-promotion attacks, competitive reactions and the sales effectiveness of each, is that competitors' sales are generally not affected, and especially not in the long run. We weigh the evidence that this sales neutrality is "natural" (i.e., due to the nature of consumer response) versus "managed" (i.e., due to the vigilance and effectiveness of competitors), and conclude in favor of the former. Steenkamp, J-B.E.M. Nijs, V.R. Hanssens, D.M. Dekimpe, M.G.