The impact of different touchpoints on brand consideration

Marketers face the challenge of resource allocation across a range of touchpoints. Hence understanding their relative impact is important, but previous research tends to examine brand advertising, retailer touchpoints, word-of-mouth, and traditional earned touchpoints separately. This article presents an approach to understanding the relative impact of multiple touchpoints. It exemplifies this approach with six touchpoint types: brand advertising, retailer advertising, in-store communications, word-of-mouth, peer observation (seeing other customers), and traditional earned media such as editorial. Using the real-time experience tracking (RET) method by which respondents report on touchpoints by contemporaneous text message, the impact of touchpoints on change in brand consideration is studied in four consumer categories: electrical goods, technology products, mobile handsets, and soft drinks. Both touchpoint frequency and touchpoint positivity, the valence of the customer's affective response to the touchpoint, are modeled. While relative touchpoint effects vary somewhat by category, a pooled model suggests the positivity of in-store communication is in general more influential than that of other touchpoints including brand advertising. An almost entirely neglected touchpoint, peer observation, is consistently significant. Overall, findings evidence the relative impact of retailers, social effects and third party endorsement in addition to brand advertising. Touchpoint positivity adds explanatory power to the prediction of change in consideration as compared with touchpoint frequency alone. This suggests the importance of methods that track touchpoint perceptual response as well as frequency, to complement current analytic approaches such as media mix modeling based on media spend or exposure alone

Advertising and competition in theory practice and public policy

This thesis was submitted for the degree of Doctor of Philosophy and awarded by Brunel University.This study analyses and compares the theories relating to advertising and competition in economics literature with their operation in the market-place, and with the attitudes and pronouncements of public policy towards advertising and competition. A survey of the main literature in economic theory concerned with advertising and competition includes the theory of value, the theory of the firm, and theories and empirical studies on the effects of advertising and imperfect competition on prices, profits, barriers to entry and product differentiation. Since no general agreement exists on these theories and research, the review is interspersed with criticisms which have been made about specific features of them, and also a short outline of alternative theories which are considered to give a more accurate account of the behaviour of firms in the real world. Consumer behaviour in the market is then studied from three viewpoints: a summary of the major academic theories of consumer behaviour; the results of some empirical research into consumer behaviour; and eight case histories of products and services which show how products are developed and introduced on the market. Finally, the economic theories are compared with the results of the empirical research and the case histories. The theory and practice of advertising and competition is then compared with extracts from the reports of public bodies to illustrate the attitude of public policy towards advertising and competition. The conclusions draw attention to the major discrepancies which appear to exist between theory and practice, and the implications that follow for public policy which seems to be predominantly based on the theory of the firm and the need to eliminate imperfections in the market such as product differentiation, advertising and non-price competition

Behaviour-based price discrimination under advertising and imperfectly informed consumers

This paper is a first look at the dynamic effects of BBPD in a horizontally differentiation product market, where firms need to invest in advertising to generate awareness. When a firm is able to recognize customers with different purchasing histories, it may send them targeted advertisements with different prices. In comparison to no discrimination, it is shown that firms reduce their advertising efforts, charge higher first period prices and lower second period prices. In comparison to no discrimination, in contrast to the profit and consumer welfare results obtained under full informed consumers, it is shown that BBPD boosts industry profits and harms consumers.COMPETE, QREN, FEDER, Fundação para a Ciência e a Tecnologia (FCT