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This paper examines Czech expectations of their advertising, the perceived intensity level of that advertising, and how various cultural factors affect the efficacy of that advertising. Findings suggest that the hypothesis that transitioning economies may be free of advertising clutter to no longer be true in the Czech Republic. Information gleaned from in-depth interviews and a survey suggests that effective Czech advertising reflects the collectivistic nature of the culture as well as the contextual level of communication. Simple, direct approaches that inform, along with the use of clever, humorous creative and group depictions, are often effective.

Purpose – Marketers are under increasing pressure to demonstrate the financial return associated with marketing expenditures. Concurrently, more attempts at measuring return on investment from marketing as well as achieving other long-term goals such as building brand equity and increasing shareholder value have been made. As a result of this emphasis, the degree to which advertising budgets are spent efficiently and the impact of these expenditures on the bottom line are an important topic to study.

Methodology/approach – This study applies data envelopment analysis (DEA) to a group of large firms to assess the degree to which companies spend advertising dollars efficiently and to examine the impact of advertising efficiency on investor behavior and, ultimately, stock prices.

Findings – The analysis reveals that firms that advertise more efficiently are rewarded by investors by positive stock returns.

Research limitations/implications (if applicable) – The study is limited to large enterprises with strong brands within a time frame of only four years.

Practical implications (if applicable) – The results imply that it is advisable for marketing managers not to limit their focus to increasing market-based assets at any cost. The efficiency of their efforts can send a positive signal to investors and contribute to shareholder value enhancement.

Originality/value of the chapter – The chapter finds investors to pay attention not only to the effectiveness of advertising activities but also to their efficiency. The study also demonstrates how DEA and stock return response modeling can be combined to investigate the link between advertising efficiency and investor behavior.

This paper provides a review of the academic literature regarding examining the standardization vs. specialization debate during the 1990s. While numerous studies have examined the validity of both strategies, it is clear that many companies are adopting an approach where broad strategy is standardized but actual advertising executions are localized as necessary. There is a need for future researchers to focus on how to effectively develop and implement standardized strategies as opposed to examining whether advertising should be standardized. Suggestions for further research are provided.

This study develops a typology of web site structure and then makes a cross-national comparison between Korea and Australia. Using a content analysis method, the study classifies 383 corporate web sites based on the typology. The study identifies two general types of web site structure: the hypermedia type and static image type and uses cluster analysis and discriminant analysis to verify the results. The study then tests predictions as to which type of web site will be more prominent in Australia versus Korea based on cultural factors. Results show that Korean firms employ the hypermedia type more frequently, whereas Australian companies are more prone to use the static image type. Cultural factors and industry-based factors are used to explain the results.

The impact of DTC advertising of prescription drugs on consumers has been the subject of considerable debate worldwide. Proponents of DTC advertising argue that it allows patients to make more informed decisions, helps address under-treatment of some medical conditions, and improves the economic value of health care, among other benefits. In contrast, critics of DTC advertising contend that it leads to consumers paying higher prices, patients potentially being misled about risks and benefits of drugs, and patients pressuring doctors to prescribe drugs. The authors examine this debate in the context of two leading theories on the effects of advertising – the Advertising=Information and Advertising=Market power schools of thought and review empirical studies that have examined the impacts of DTC advertising on consumers. It is found that the research evidence generally favors the Advertising=Information school, which is supportive of the idea that DTC helps patients become more informed and communicate more effectively with their doctors.