Chapter 9

Question 1

Two important challenges due to digitalisation:

Answer 1

• Rise of ad blocking software

- Piracy

Question 2

Why is the rise of ad blocking software a challenge?

Answer 2

• Because it makes it harder for advertisers to reach customers.
• Because it is a danger for websites who rely on ad revenue.

Question 3

Consumer-brand usage (CBU)

Answer 3

The extent to which consumers buy a particular brand of a product in favour of similar brands.

Question 4

What has lowered the privacy concerns among people?

Answer 4

Change in privacy settings and user control.

Question 5

In which areas is privacy especially a big concern?

Answer 5

• Big data

- Social networking

Question 6

Reason why ad block users are not that bad to not have as viewers

Answer 6

The users that are harder to reach (the ad block users) are often already less responsive to advertising.

By targeting them, the advertising will be less valuable when trying to force advertisements on them.

Question 7

Strategies that online content providers use to go against ad blocking

Answer 7

• Have an ‘ad block’ wall
• Ask for a fee to get ad-free content
• Pay ad blockers to be whitelisted
• Disguise advertising

Question 8

Reasons behind the use of ad blocking software

Answer 8

1. To remove all ads
2. To remove annoying ads
3. To remove ads from a particular site
4. Privacy concerns (cookies)
5. Computer performance

Question 9

What is expected to be the biggest growth factor in ad blocking in upcoming years?

Answer 9

Mobile ad blocking

Question 10

Reason why mobile ad blocking is (currently) rather low

Answer 10

Because there is a rather low amount of mobile ads.

Question 11

Who are most averse to advertisements?

Answer 11

Young males.

There is a difference in terms of age and gender when it comes to ad block usage.

Question 12

Top sectors with the most ad blocking

Answer 12

1. Gaming
2. Social network
3. Tech/internet
4. Education

Question 13

Misperception about correlations

Answer 13

A positive correlation does NOT mean a positive influence of the independent variable on the dependent variable.

It solely means that they move in the same direction.

Question 14

Explain the correlation between piracy and sales.

Answer 14

There is a positive correlation. This, however, does not mean that piracy increases sales or that sales increase piracy.

It solely is more likely that popular albums are both legally bought and illegally downloaded more than less popular albums.

Question 15

What are two things that positive influence brand sales?

Answer 15

• Promotion

- New product introduction

Question 16

Explain the influence of promotion and new production introduction on brand sales.

Answer 16

Promotion and new product introduction both have a direct and indirect positive influence on brand sales.

E.g., if an artist launches a new album, this has direct positive impact on brand sales.

This new album launch also increases CBU and CBE, which means indirect positive impact on brand sales.

Question 17

Explain the influence of piracy on brand sales.

Answer 17

Piracy has a direct negative impact on brand sales.

Piracy has an indirect positive effect on brand sales.

Question 18

Consumer-brand endorsement

Answer 18

A form of advertising using word-of-mouth / other promotion methods.