Tag Archives: advertising

  • The Dynamic Impact of Product-Harm Crises on Brand Preference and Advertising Effectiveness: An Empirical Analysis of the Automobile Industry

    Liu and Shankar

    by Yan Liu and Venky Shankar

    This article appeared in Management Science.

    Product-harm crises (recalls) carry negative product information which adversely affects brand preference and advertising effectiveness. This negative impact of product-harm crises may differ across recall events depending on media coverage of the event, crisis severity, and consumers’ prior beliefs about product quality. We develop a state space model to capture the dynamics in brand preference, advertising effectiveness and consumer response to product recalls, integrate it with a random coefficient demand model, and estimate it using a unique dataset containing 35 automobile brands, 193 auto sub-brands, and 359 recalls during 1997-2002. Our results reveal that consumers respond more negatively to product recalls with greater media attention, more severe consequences, and higher perceived product quality. Furthermore, they show that sub-brand advertising effectiveness declines by a greater amount than parent-brand advertising and the decline in effectiveness of the recalled sub-brand’s advertising spills over to other sub-brands under the same parent-brand.

  • Online and Mobile Advertising: Current Scenario, Emerging Trends, and Future Directions

    Shankar_Hollinger_MSl_2007

    by Venkatesh Shankar and Marie Hollinger

    This article was published as MSI Report 07-206.

    Online advertising expenditures are growing rapidly and are expected to reach $37 billion in the U.S. by 2011. Mobile advertising or advertising delivered through mobile devices or media is also growing substantially. Advertisers need to better understand the different forms, formats, and media associated with online and mobile advertising, how such advertising influences consumer behavior, the different pricing models for such advertising, and how to formulate a strategy for effectively allocating their marketing dollars to different online advertising forms, formats and media. In this article, we address these issues. We provide an overview of the current scenario with regard to online and mobile advertising. We discuss the emerging trends in these areas and offer our view of the future directions.

  • Communication and Promotion Decisions in Retailing: A Review and Directions for Future Research

    Ailawadi…Shankar JR 2009

    by Kusum Ailawadi, J. P. Beauchamp, Naveen Donthu, Dinesh Gauri, and Venkatesh Shankar

    Communication and promotion decisions are a fundamental part of retailer customer experience management strategy. In this review paper, we address two key questions from a retailer’s perspective: (1) what have we learned from prior research about promotion, advertising, and other forms of communication and (2) what major issues should future research in this area address. In addressing these questions, we propose and follow a framework that captures the interrelationships among manufacturer and retailer communication and promotion decisions and retailer performance. We examine these questions under four major topics: determination and allocation of promotion budget, trade promotions, consumer promotions and communication and promotion through the new media. Our review offers several useful insights and identifies many fruitful topics and questions for future research.

    Keywords: Communication; Promotion; Advertising; New media: Resource allocation; Trade promotion; Consumer promotion; Accounting; Legal issues.