Quality uncertainty, brand reliance, and dissipative advertising

Article Abstract:

Consumers may have learned to generalize from usage experiences that nationally advertised, name-brand items tend to be higher in quality than unadvertised brands. Such generalization may have prompted the substitution of brand-name evaluations for search in quality assessments of nondurable experience goods. This paper offers theoretical arguments which suggest that if some consumers do not search, all firms in nondurable, experience goods markets can increase their profits if some substitute dissipative advertising (i.e., advertising which ignores information about product performance characteristics) of brand names for product quality enhancements. Undersearching by consumers invites firms to downgrade value in nondurable, experience goods markets. In support of the hypothesized substitution by consumers of brand-name evaluations for search in nondurable, experience goods markets, this paper reports results of a field experiment in which the influences on quality assessments of brand name and product composition were studied in two categories where dissipative advertising is heavily relied upon. Results suggest that branding is relied upon more heavily than search to assess quality, even when brand cues are inconsistent with actual quality levels and search is costless, suggesting that dissipative advertising can be extremely effective. (Reprinted by permission of the publisher.)

Methods, Product quality, Consumer behavior, Brand name products, Brand names, Advertising research

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A content analysis of CPA advertising in national print media from 1979 to 1984

Article Abstract:

Certified Public Accountants were not allowed to advertise from 1922 to 1977. Even though the AICPA Code was challenged in 1978, there has been continued discussion and disagreement among practitioners about whether accountants should advertise. A content analysis of 38 publications (over a six year period) from industry-trade, accounting, and general business was performed in order to determine where advertisements appeared, timing, frequency and to whom CPAs were advertising as well as the message content, components, and objectives of the advertisements. Of 812 advertisements, 71% were from Big Eight firms. The advertisements promoting services not requiring CPA certification were found mostly in industry-trade publications. The number of advertisements increased through the years except for 1982. Advertising by CPA firms still appears to be conservative in numbers; however, the trend indicates that such advertising will increase in the future. (Reprinted by permission of the publisher.)

Accountants, Magazine advertising

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Reliance on brand by young children

Article Abstract:

Brand reliance among children can begin as early as two years old, with young children preferring nationally advertised brands over lesser known brands. This was revealed by the results of an analysis of the preference formation and brand choice processes among young children. Brand preferences of their parents and television advertising were also observed to be important factors in early brand reliance.

Brand choice, Consumer preferences, Children as consumers, Child consumers

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