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Article
Publication date: 1 July 1988

Lester W. Johnson

The issue of a partial or total ban on the advertising of cigarettes and/or tobacco products has been the focus of substantial public policy debate for a number of years…

Abstract

The issue of a partial or total ban on the advertising of cigarettes and/or tobacco products has been the focus of substantial public policy debate for a number of years in several countries. As far back as the early 1970s, Hamilton carefully examined the effects of the ban on electronic media cigarette advertising imposed in 1971 in the United States and concluded that the advertising ban did not have a significant effect in reducing total demand for cigarettes. Bishop and Yoo, using a more complex econometric specification, also reached essentially the same conclusion. Hamilton also examined the demand for cigarettes in eleven countries and concluded that advertising bans had little effect on cigarette demand. Finally, Boddewyn presents data from 16 countries which suggest strongly that advertising bans have not had the effects expected by those advocating their introduction.

Details

International Journal of Social Economics, vol. 15 no. 7
Type: Research Article
ISSN: 0306-8293

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Article
Publication date: 29 March 2021

Nina Åkestam, Sara Rosengren, Micael Dahlén, Karina T. Liljedal and Hanna Berg

This paper aims to investigate cross-gender effects of gender stereotypes in advertising. More specifically, it proposes that the negative effects found in studies of…

Abstract

Purpose

This paper aims to investigate cross-gender effects of gender stereotypes in advertising. More specifically, it proposes that the negative effects found in studies of women’s reactions to stereotyped female portrayals should hold across gender portrayal and target audience gender.

Design/methodology/approach

In two experimental studies, the effects of stereotyped portrayals (vs non-stereotyped portrayals) across gender are compared.

Findings

The results show that advertising portrayals of women and men have a presumed negative influence on others, leading to higher levels of ad reactance, which has a negative impact on brand-related effects across model and participant gender, and for gender stereotypes in terms of physical characteristics and roles.

Research limitations/implications

Whereas previous studies have focused on reactions of women to female stereotypes, the current paper suggests that women and men alike react negatively to stereotyped portrayals of other genders.

Practical implications

The results indicate that marketers can benefit from adapting a more mindful approach to the portrayals of gender used in advertising.

Originality/value

The addition of a cross-gender perspective to the literature on gender stereotypes in advertising is a key contribution to this literature.

Details

European Journal of Marketing, vol. 55 no. 13
Type: Research Article
ISSN: 0309-0566

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Book part
Publication date: 13 December 2013

Wei Tan

A dynamic oligopoly model of the cigarette industry is developed to study the responses of firms to various antismoking policies and to estimate the implications for the…

Abstract

A dynamic oligopoly model of the cigarette industry is developed to study the responses of firms to various antismoking policies and to estimate the implications for the policy efficacy. The structural parameters are estimated using a combination of micro and macro level data and firms’ optimal price and advertising strategies are solved as a Markov Perfect Nash Equilibrium. The simulation results show that tobacco tax increase reduces both the overall smoking rate and the youth smoking rate, while advertising restrictions may increase the youth smoking rate. Firm’s responses strengthen the impact of antismoking policies in the short run.

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Structural Econometric Models
Type: Book
ISBN: 978-1-78350-052-9

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Book part
Publication date: 9 April 2019

Barrie Gunter

Abstract

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Gambling Advertising: Nature, Effects and Regulation
Type: Book
ISBN: 978-1-78769-923-6

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Article
Publication date: 16 July 2020

Shahzeb Hussain, T.C. Melewar, Constantinos Vasilios Priporas and Pantea Foroudi

This paper aims to use signalling theory to examine the concept of advertising credibility and its effects on brand credibility, brand image, corporate credibility and…

Abstract

Purpose

This paper aims to use signalling theory to examine the concept of advertising credibility and its effects on brand credibility, brand image, corporate credibility and corporate image.

Design/methodology/approach

A qualitative approach was used. Ten interviews and four focus groups were conducted among participants drawn from the London area. The data was analysed using thematic analysis.

Findings

The findings suggest that advertising credibility is defined using terms like accurate, caring, competent, complete, convincing, ethical, honest, impressive, promising, reliable and warranted. The findings also suggest that advertising credibility has a positive effect on brand credibility, brand image, corporate credibility and corporate image. However, these effects are lower when the brand and corporation have different names than when they have similar names. The dissimilarity of names can also provide some benefit, especially when brands or firms are faced with a crisis. The findings also illustrate that the theoretical model used in this study is valid, and suggest that advertising credibility has positive effects on other constructs.

Originality/value

Advertising credibility has received little attention in the literature. There is also little attention on its effects on other credibility constructs. This study minimises these gaps by conducting qualitative research to explore the effects of advertising credibility on brand credibility, corporate credibility and corporate image.

Details

Qualitative Market Research: An International Journal, vol. 23 no. 4
Type: Research Article
ISSN: 1352-2752

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Article
Publication date: 11 July 2016

Jungkeun Kim, Jae-Eun Kim and Roger Marshall

This research aims to examine the moderating role of consumers’ persuasion knowledge (PK) on the persuasive effect of combined advertising and publicity within the same…

Abstract

Purpose

This research aims to examine the moderating role of consumers’ persuasion knowledge (PK) on the persuasive effect of combined advertising and publicity within the same medium. The synergistic effect experienced when two messages are thus combined is reversed for readers with high PK who are first exposed to publicity then to advertising. Believability of the message is found to be a mediator within this context.

Design/methodology/approach

Based on a review of the appropriate literatures on PK and integrated marketing communication (IMC), this paper tests the hypotheses using two experimental studies.

Findings

The results of two experiments show that publicity-then-advertising yields poorer persuasion than advertising-then-publicity, especially under a high PK condition. The reduced synergistic effect of combinations of advertising and publicity is found especially when consumers activate temporary PK and/or when they have chronically high PK. A mediator for a decrease in the synergistic effect of combinations of advertising and publicity, believability, is examined.

Practical implications

This study contains significant managerial implications for marketing communicators about how to most effectively combine and coordinate publicity and advertising in the implementation of an IMC strategy.

Originality/value

Other than making a contribution to the IMCs’ literature, this research extends understanding of the power of PK within an IMC framework. The research contributes yet another extension to the original PK model of Friestad and Wright (1994) by suggesting an underlying theoretical mechanism to explain how PK works in the IMC domain.

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European Journal of Marketing, vol. 50 no. 7/8
Type: Research Article
ISSN: 0309-0566

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Article
Publication date: 9 September 2014

Erik Modig and Sara Rosengren

– This paper aims to investigate the impact of advertising creativity on consumer perceptions of product quality, value, retailer brand attitude and purchase intention.

Abstract

Purpose

This paper aims to investigate the impact of advertising creativity on consumer perceptions of product quality, value, retailer brand attitude and purchase intention.

Design/methodology/approach

Two experimental studies were conducted. Study 1 shows the impact of creativity (high/low) for two product categories (mineral water and chewing gum) and one known retailer. The findings are replicated and extended in Study 2 for four categories (mineral water, chewing gum, batteries and detergent) and two known retailers.

Findings

The results show that advertising creativity positively signals perceived product quality, which increases perceived value. These effects fully mediate a positive impact on retailer brand attitude and purchase intentions. The positive effect of advertising creativity on perceived product quality is mediated by perceived advertisement effort.

Practical implications

This study introduces advertising creativity as a way for retailers to increase perceived product quality and value. The results show that advertising creativity increases perceived effort on behalf of the sender, which positively influences purchase intentions.

Originality/value

The current study shows that advertising creativity can work as a signal of product quality, which has positive effects for retailers.

Details

Journal of Product & Brand Management, vol. 23 no. 6
Type: Research Article
ISSN: 1061-0421

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Article
Publication date: 1 October 1997

C.S. Agnes Cheng and Charles J.P. Chen

Previous research and logic indicate that capital markets generally value spending for advertising and promotion; however, empirical results from these studies are far…

Abstract

Previous research and logic indicate that capital markets generally value spending for advertising and promotion; however, empirical results from these studies are far from consistent. While most studies find a positive relationship between a firm's advertising spending and its market value (Hirschey, 1985; Jose, Nichols and Stevens, 1986; Lustgarten and Thomadakis, 1987;Morck, Shleifer and Vishny, 1988; and Morck and Yeung, 1991), others find a negative relationship when control variables are added to the empirical model (Erickson and Jacobson, 1992). Differences in model specification may explain these conflicting results. Previous studies have included a variety of control variables such as return on investment, market share, research and development (R&D) spending, and book value (Erickson and Jacobson, 1992; Chauvin and Hirschey, 1993; Hirschey, 1982) when testing the relationship between promotional expenses and market value. Different firm characteristics (e.g. sales, total assets, book value of equity and price) have been selected as scalers for empirical measures of both the dependent and independent variables. Although these studies investigated an essentially identical theoretical relationship, variation in model specifications renders interpretations different.

Details

Managerial Finance, vol. 23 no. 10
Type: Research Article
ISSN: 0307-4358

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Article
Publication date: 15 February 2008

Anthony Grimes

The purpose of this paper is draw together the different explanations of low attention advertising effects in the related, yet traditionally separate, paradigms of low…

Abstract

Purpose

The purpose of this paper is draw together the different explanations of low attention advertising effects in the related, yet traditionally separate, paradigms of low involvement processing and mere exposure effects. Further to this, the paper aims to integrate these perspectives into a more holistic theoretical framework for researching and explaining low attention advertising effects.

Design/methodology/approach

A critical review of the consumer literature in the related areas of low involvement processing and mere exposure effects is undertaken. This reveals very different explanations of the psychological processes that underpin research within these paradigms, and gives rise to a conceptual problem in the understanding of how advertising creates effects under conditions of low attention.

Findings

This paper argues that these two streams of research should not be seen as competing theories, however, but that collectively they explain the different routes by which advertising creates effects under conditions of low attention. Specifically, the paper proposes an integrated model of advertising effects that identifies two distinct routes to the creation of advertising effects under conditions of low attention. This model is founded on the notion that mere exposure effects are essentially driven by perceptual processes, whilst low involvement processing is almost universally seen to be underpinned by conceptual processes.

Practical implications

As the two routes incorporate different psychological processes, it is argued that such a distinction gives rise to important implications for advertising design and research. These are discussed in detail.

Originality/value

This paper draws together the various strands of research from related, yet traditionally separate, fields of research and provides a framework in which to develop further empirical and theoretical work into low attention advertising effects.

Details

European Journal of Marketing, vol. 42 no. 1/2
Type: Research Article
ISSN: 0309-0566

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Article
Publication date: 11 June 2018

Peter Guenther and Miriam Guenther

This paper aims to examine how much importance the financial market attaches to advertising spending’s short-term productivity vis-à-vis its investment component and the…

Abstract

Purpose

This paper aims to examine how much importance the financial market attaches to advertising spending’s short-term productivity vis-à-vis its investment component and the impact of important contextual factors (investor mix and analyst coverage) on this trade-off.

Design/methodology/approach

A stochastic frontier estimation (SFE) approach is used to help disentangle advertising spending. Using a panel internal instruments model and 10,017 firm-year observations from publicly listed US companies over a 13-year period, this study relates aggregated advertising spending and disentangled advertising spending, together with important contextual factors, to Tobin’s q.

Findings

The results do not indicate an effect of aggregated advertising spending on Tobin’s q. However, after advertising spending is disentangled, results show the component with an efficient immediate revenue response to have a positive effect on Tobin’s q, whereas the effect of the remaining investment component is negative. Contextual factors moderate investors’ valuation of the components.

Research limitations/implications

Findings are limited to US publicly listed firms, and are based on secondary, non-experimental data. The results imply that investors reward firms only for short-term advertising productivity, casting doubt on investors’ understanding of the long-term value of marketing.

Practical implications

The results confirm managers’ belief that not all money spent on advertising creates shareholder value. Managers should use the outlined SFE to benchmark their firms’ short-term advertising productivity against that of industry peer firms.

Originality/value

This study advances a new perspective, suggesting that advertising spending can be decomposed into two distinct parts by considering how financial market investors evaluate advertising spending. Important contextual effects on this evaluation from firms’ investor mix and analyst coverage are also shown for the first time. The findings help in reconciling conflicting prior results, and shed new light on how the financial market evaluates marketing expenditures.

Details

European Journal of Marketing, vol. 52 no. 7/8
Type: Research Article
ISSN: 0309-0566

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