HC 2 Flashcards
How well does advertising work?
Meta-analysis of brand advertising elasticities shows average short-term advertising elasticity of 0.12 and average long-term advertising elasticity of 0.24.
Advertising elasticity declined over time. Advertising elasticity is higher for durable goods than nondurable good and in the early stage than the mature stage of product life cycle.
How does price elasticity work?
The average is -2.62.
When the price increases by 1%, the demand or sales decreases with -2.62.
When the price decreases by 1%. The demand or sales increases with 2.62%.
The previous mean short-term elasticity is 0.22, while for long-term this was 0.41. What could be the possible causes for change?
-Market characteristics
-Research methods
-Consumer responses
Do sex and violence sell?
Sex and violence draw attention and distract from other information.
Meta-analysis of experiments testing effects of violent/sexual media/ad concent on brand memory, attitudes and buying intentions show that violent media content leads to lower brand memory, less favorable brand attitude and lower purchase intentions. Sexual ad content leads to less favorable brand attitude as well.
When media and ad content are congruent, brand memory improved and buying intention increased.
How can sex and violence be used in an ad productively?
Sex and violence grab attention. A side effect is the reduced attention for other information. The consequence of this is that it lowers brand memory, attitude and buying intention.
However, attention is not the same as the purchase intention. A byproduct of evolutionary attention to violent and sexual cues is that these cues are emotionally arousing.
