205 research outputs found

    The Role of Schema Salience in Ad Processing and Evaluation

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    Advertising grids such as the Rossiter-Percy grid (Rossiter & Percy 1991, 1997) propose that brand-matching advertising is more effective than brand-mismatching advertising. However, for the match hypothesis to hold the brand schema needs to be salient in ad processing and evaluation. In this study we test how schema salience affects ad processing and evaluation. Two separate experiments were conducted, employing the same brand descriptions and ad scenarios. In the first experiment, the brand schema was made salient in ad processing, whereas in the second experiment the ad schema was made salient. In the first experiment brand(ad combinations were evaluated in line with the Rossiter-Percy advertising grid. If the brand schema was salient, consumers evaluated matching combinations of ad type and brand purchase motivation more favorably than mismatching combinations. In the second experiment, brand(ad combinations were evaluated in accordance with the existing ad schema. This implies that when the ad schema was salient, evaluations of brand(ad combinations were not affected by matches or mismatches between ads and purchase motivations for the brands.The two studies show that evaluation of brand(ad combinations depends on the schema that is salient at the time of information processing. Consequently, brand-matching advertising is effective only if consumers consciously relate ad information to brand knowledge, i.e., if the brand schema is salient in ad processing.advertising;advertising grid;brand perception;matching hypothesis;purchase motivation

    The Effectiveness of Advertising Matching Purchase Motivation

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    Several authors have proposed frameworks to help advertisers predict and plan advertising effectiveness. Rossiter and Percy's advertising grid (1997) recommends that the ad appeal should match the purchase motivation or attitude base. They suggest that for utilitarian brands informational advertising is more effective than transformational advertising. Likewise, for hedonic brands transformational advertising is more effective than informational advertising. These recommendations were tested in an experiment with different products and different ads. Advertising effectiveness was measured by brand and ad evaluations.In contrast with Rossiter and Percy, we find that advertising that mismatches rather than matches the motivation for the brand is more effective. Our finding can be explained in two ways. Firstly, schema theory suggests that a moderate degree of incongruity between advertising and brand perceptions and unexpected but relevant information in the mismatching ad results in favorable evaluations, as compared with a matching ad. Secondly, research on attitudes and persuasion suggests that, if typical product category ads are associated with negative affect, the particular ad functions as a counterattitudinal message, which is more persuasive in the case of a mismatch rather than a match with the category ads. We find evidence for both explanations.advertising;advertising grid;brand perception;matching hypothesis;purchase motivation

    Targeting the robo-advice customer: the development of a psychographic segmentation model for financial advice robots

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    The purpose of this study is to develop the world’s first psychographic market segmentation model that supports personalization, customer education, customer activation, and customer engagement strategies with financial advice robots. As traditional segmentation models in consumer finance primarily focus on externally observed demographics or economic criteria such as profession, age, income, or wealth, post-hoc psychographic segmentation further supports personalization in the digital advisor’s service delivery. It might also provide insight into how to include the 4.5 billion underserved people financially and support inexperienced millennials in securing their future financially. To develop the psychographic segmentation, a survey (N= 2,232) has been conducted across the U.K. and the Netherlands. Factor analysis has been performed to define the following psychographic factors: “convenience,” “financial illiteracy,” and “rigid personality.” Based on these factors, a Ward cluster analysis has been performed to define the psychographic segments across the two markets. Keywords: financial advice, digital advice, psychographic segmentation, financial literacy, risk toleranc

    Domain-specific market segmentation

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    Patterns of residential energy behavior

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    Determinants of home insulation intention

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